DFX Finance’s AMM (automated market maker) provides FX services at the lowest price. DFX is a set of smart contracts that uses an oracle powered by Chainlink to optimise foreign exchange prices. The Chainlink oracle does not dictate the price of the AMM, but it serves as a reference point for the bonding curve. This helps shift the optimal range of capital without user intervention and allows DFX to provide extremely efficient prices even with small pools of capital, enabling for higher capital efficiency without sacrificing pricing.
How is DFX different from Uniswap and/or Curve?
DFX provides concentrated liquidity for non-USD stablecoins against USDC to create the most liquid market at the exchange rate that mirrors the traditional FX markets. This allows DFX users to ensure pricing is as close to spot rate as possible with the most depth and lowest possible slippage. Uniswap and Curve require swaps and constant arbitrage to maintain a consistent price to the real-world forex price. DFX will provide the most accurate and current pricing if the liquidity pools are balanced. DFX also helps curate the best fiat-backed stablecoins for the world to use.
Markets currently available:
- EUROC/USDC (EUR)
- CADC/USDC (CAD)
- XSGD/USDC (SGD)
- NZDS/USDC (NZD)
- TRYB/USDC (TRY)
- XIDR/USDC (IDR)
How to use DFX to buy/sell crypto with the lowest fees?
Mint or redeem stablecoins directly with the stablecoin issuers for little or no cost. Then utilize DEX aggregators like 1inch that integrates DFX to get the best possible rates from your native stablecoin to any ERC20 based cryptocurrency.
How does DFX disrupt the payments ecosystem?
With the addition of the recently launched EUROC, many crypto users will start looking for ways to leverage this unique stablecoin. FX is a natural progression into what we can do with blockchain technology today. As the leaders of FX on the blockchain, we want to grow this new ecosystem. As more people start seeing opportunities to launch new stablecoins around the world, we want to encourage and provide as much support as possible for strong fiat-backed stablecoins with efficient on/off ramps.
Once we establish a network of stablecoins around the world, we create a network effect between the different stablecoins and their stablecoin issuers that will challenge the likes of SWIFT to move value around globally in real-time 24/7 without the need for multi-day settlement across multiple corresponding banks.
DFX as a foundational infrastructure for decentralised foreign exchange
Bringing together a coherent network of non-USD stablecoins and on/off ramps, DFX provides a decentralised FX API publically available for any application to plug into our service Any web2 or web3 applications can leverage DFX’s API to provide the best FX rates to retail users. We are providing institutional FX pricing and making it available for anyone to access.
These are only a few sample use cases of what we have/are bringing to the world. Our team is working tirelessly to bring a future where stablecoins of all currencies can thrive.
Check us out:
DFX Finance Website: https://dfx.finance/
DFX Dapp: https://app.dfx.finance/
This post is commissioned by DFX Finance and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.