What is DFX?
Telcoin x DFX in conversation with Parker Spann and Kevin Zhang
July 8, 2021
Telcoin x DFX Joint Community AMA
July 8, 2021
DFX and DFX token overview
DFX is an Ethereum-based decentralized exchange protocol with a dynamically tuned bonding curve optimized for fiat-backed stablecoins using real-world FX price feeds. The DFX token is the governance token for the DFX protocol. In the near future, DFX will be controlled by a DAO where DFX token holders will be able to submit proposals and vote on protocol changes as a decentralized community. TELx Miners who provide staked liquidity to DFX on Polygon will earn both TEL and DFX at launch.
DFX AMM curve and pricing
Unlike the other AMMs, the DFX bonding curve continually shifts to allow for the most efficient trades. This means you can get extremely close to spot prices while taking advantage of Polygon's quick settlement finality.
The quantity of tokens in each pool acts as a fixed pivot point for the slope of the bonding curve, which dynamically changes based on an external price oracle.
The flat region in the middle is 50% of the capital in a DFX pool, and that capital utilizes the chainlink oracle price until it reaches the threshold of 25/75% of the pool. At that point prices begin to slip from the oracle price. This enables highly efficient stablecoin swaps.
Telcoin and DFX
Solving the global remittance problem is a the core of Telcoin's DNA. DFX's dynamic bonding curve will enable Telcoin users to leverage the benefits of AMMs, capturing fees for providing self-custodial liquidity reserves, without the inefficiency that happens with one-way volume through stablecoin pools on existing AMMs.
With the advent of DFX, we can now build the first user-owned, decentralized global remittance network on the planet without compromising on efficiency or retail participation. Built on DFX, the SMS Network is designed to disrupt the global remittance market on every level from self-custody, to instant settlement, the lowest FX costs in the world, and ultimately, global, user-ownership.
Review the following links to learn more about DFX.
- Website: https://dfx.finance/
- Documentation: https://docs.dfx.finance/
- Exchange interface: https://app.dfx.finance/
- Pools interface: https://app.dfx.finance/pools
- Github: https://github.com/dfx-finance
- Smart Contract Audit: https://github.com/dfx-finance/protocol/blob/main/audits/2021-05-03-Trail_of_Bits.pdf
- Coingecko: https://www.coingecko.com/en/coins/dfx-finance
- DFX token details (Polygon): 0xe7804d91dfcde7f776c90043e03eaa6df87e6395
- DFX token details (Ethereum): 0x888888435fde8e7d4c54cab67f206e4199454c60
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