Dfyn Network Seeks to Dethrone Major Industry DEXes
Dfyn Network, the multi-chain, and low-fee or even gasless automated market maker (AMM) exchange MainNet was launched in Q2 2021, with the mission to establish a network of decentralized exchanges (DEXes) within different Layer 1 and Layer 2 blockchains. This multi-chain approach will allow Dfyn to access a variety of liquidity sources to provide a highly efficient price discovery by preventing price fragmentation due to liquidity barriers.
What Dfyn Brings to Blockchain and DeFi
There is a combination of important features that position Dfyn in a highly promising group of DEXes and AMMs with whom it is competing, such as 1inch and Matcha among others.
First, it was initially launched on Polygon, which has been gaining major attention lately due to the inclusion of major investors such as Mark Cuban and AU21 joining previous participants such as Coinbase and Binance. Additionally, there has been an important set of high-volume, Ethereum-based platforms migrating or integrating to the Polygon network such as SushiSwap, Curve, and Aave.
Moreover, being launched on Polygon has not created barriers for the team to move with a strategy that seeks to create nodes, connected by routers, across different blockchains such as Ethereum, BSC, Avalanche, Cosmos, Tezos, and of course Polygon. This multi-chain presence creates a network of bridges. This can be better explained with an example: “Dfyn nodes can be thought of as far-flung cities and Router as the highway that connects this city, thereby facilitating free movement of vehicles (in this case, assets) from anyone city to the other.”
The Distinctions That Make Dfyn Shine
Based on a multi-blockchain future projection, Dfyn has 6characteristics that separate it, to a certain extent, from similar competitors.
- Blockchain Agnostic: Dfyn aims to create an adaptable ecosystem that will allow users to use the platform and take advantage of its multi-chain presence for every market participant without having to abandon the blockchain in which it has a presence through its nodes, facilitating access to a continuously growing list of markets.
- Low Fees: Through enhanced trader analytics and high-speed AMM, Dfyn will address traditional AMM issues such as impermanent loss.
- Time Efficiency: By using Layer 2 blockchains like Polygon and xDAI on top of Layer 1 blockchains, Dfyn ensures that your transactions are carried out instantly.
- High Liquidity: As a result of bridging a wide range of blockchains, Dfyn can ensure a high level of liquidity for users that seek any asset, with a backup alternative of using alternate blockchains, through its various nodes, to secure any asset that has low reserves on any given network.
- Better User Experience: By enabling zero gas transactions and smart order routing, Dfyn will ensure a much better user experience in comparison to current Layer1 DEXes. The transaction costs will be a small fraction of the costs in the Ethereum network and the transactions will be at least 10 times faster.
- Transparent: Users will be able to see what goes on within Dfyn and the process they are involved in every time they interact with the protocol, eventually ending up with a fully open-source codebase.
For reference, the closest competitors for Dfyn, at the moment, are PlasmaSwap or HurricanSwap.
Dfyn Token and Governance Setup
The Dfyn tokenomics are quite straightforward and seem to be focused on promoting the use of the platform. With 30% of the tokens allocated to mining and farming initiatives, 17% for the ecosystem fund, and 30% divided between the team and partners and advisors respectively.
Regarding the governance structure, those who hold the Dfyn token will be able to take part in voting events focused on Dfyn protocol amendments and upgrades.
Milestones and Cruising Through the Roadmap
Since the launch of its beta AMM exchange on Polygon in September 2020, Dfyn has been seamlessly cruising down its roadmap with a few impressive numbers added to each milestone that has been achieved. First, in May 2021 Dfyn reported user growth and transactions increase of 128% and 170% respectively. This specific event led to Dfyn becoming a member of the top 10 DeFi platforms on Polygon.
Additionally, in June 2021, Dfyn successfully surpassed $240 million in total value locked (TVL) and reached 349 token pairs after weeks of launching its MainNet on Polygon. Furthermore, the Dfyn initial DEX offering (IDO) posted returns of 86x for early investors after raising $2.7 million on the PolkaStarter platform. Such a successful raise brought the likes of Algorand, Elrond Network, and Solana’s Terra Money to announce partnerships with Dfyn as a way to either integrate into the Polygon network or bring Dfyn to the blockchain by establishing nodes within their blockchain.
At the moment of writing, Dfyn has a market cap of $22.7 million and a 24-hour trading volume of $3 million.
DFG’s Involvement in Dfyn
For years, DFG leadership has understood that the future of digital assets and blockchain will be interoperability due to the unique advantages each team and network can provide to the system as a whole, therefore, being an investor in Dfyn, as a multi-chain service provider and a young and upcoming advocate for blockchain interoperability was a logical step.
Furthermore, after evaluating the use case of each project, DFG considers the team to be a primordial factor when investing, due to the capabilities a solid team can have to overcome issues or innovate under pressure to maintain a certain level of quality of the products they are creating.
“The clear understanding of market needs in addition to a high-quality product created by an extraordinary team that has continued to achieve milestones while the market has encountered turbulent moments is a clear indicator that at DFG we have made the right decision in becoming an early investor and supporter of Dfyn” — James Wo, DFG Founder, and CEO.