In DeFi, the over-reliance on USD-based stable coins, DFX seeks to solve a common problem.
For DFX, a DEX intended to extend DeFi to foreign markets, Polychain Capital led a $5 million seed round.
DFX aims to offer worldwide DeFi
The DFX decentralized exchange for stable coins is being developed by former Ethereum Foundation employees, Deloitte, and ConsenSys.
The DEX protocol is intended for non-USD stable coins, including three dollars pegged to the Canadian and Singapore dollars and to the Pound. The multiplicity of currencies is intended to bring DeFi to a larger global audience.
One of DeFi’s pressure points is over-reliance on USD stable coins such as Tether and USDC, exposing US dollar inflation to foreign users. To offer non-USD options in DeFi, DFX will start liquidity mining with the CADC, EURS, and XDGD stablecoins.
Users of DFX will be able to vote on what new coins they want to introduce to the protocol.
Continues DeFi Boom
After a bearish correction last week, with over $37 billion in assets currently locked in the ecosystem, DeFi is booming.
On several sites, however, the method of contributing liquidity or lending and borrowing can still be very convoluted. VC firms such as Polychain Capital obviously feel that it is worth exploring solutions such as the DFX exchange’s response to USD exposure.
Polychain has previously invested in the network for Polymarket forecasts and Dfinity Mainnet.
Hex Money, DeFi Partnership, and Castle Island Ventures, the latter of which funded BlockFi, are other VCs contributing to the project.