Faster, cheaper, fairer DeFi
We are very excited to present Dfyn to you.
Dfyn.network is a community-governed DeFi project that offers a low-fee AMM exchange along with yield farming opportunities. It combines the unmatched liquidity of Ethereum with the scalability of L2 platforms. Dfyn will also work on providing a comprehensive platform for social tokens and NFTs. We are launching with the Matic platform, in the first instance.
As we have seen from the recent spike in Ethereum network gas costs, L2 efforts are critical to DeFi and Ethereum achieving their full potential. Ethereum network throughputs are woefully inadequate, and while there are Ethereum competitors trying to reinvent a universal ‘smart computer’, the odds of an L2 platform becoming the more likely adopted path going ahead are significantly higher than one of the Ethereum competitors displacing Ethereum. We are bullish on Matic, and its potential to be a leading contender as the mainstream L2 variant for the Ethereum ecosystem.
However, Dfyn wants to remain chain agnostic and support all great L2 scaling solutions using Polkadot as a middle layer.
What is ‘Fair’ DeFi
In addition to faster transactions, L2 also allows for the average Jane to participate in DeFi. Currently, unless you begin with at least $10,000 in some cryptocurrency or stablecoin, it becomes infeasible to actually generate a steady, risk-minimized yield from farming. This is far less than the average per capita income of most countries in the world*.
The friction involved with creating liquidity provider tokens, approving transfers, and harvesting farm yields has limited DeFi to a thin sliver of the ‘techno-elite’. Perversely, there are middle-men platforms that solely exist to optimize yield farming for you, by pooling together capital and allocating across farms. Even those farms are not really pocket-friendly for average Joe Farmer.
Badges such as ‘degen’ and ‘chad’, are almost a matter of pride in some telegram channels, with nary a hint of irony. This misses the bigger point — Crypto, and DeFi, are supposed to level the playing field, not perpetuate entrenched oligopolies.
How is Dfyn different?
Gas costs & Speed: Unlike with Ethereum, gas costs on Matic are truly negligible. A million transactions cost ~$18. As most folks that are familiar with Ethereum know, just one transaction to withdraw the recent Uniswap airdrop worth $ 1200 into their wallets recently cost multiples of $18 as congestion peaked with folks rushing to reclaim their Uni tokens. The problem with Ethereum congestion is that one large event is sufficient to bring down the economic-feasibility of entire network. This has happened in the past with cryptokitties as well, and is a periodic occurrence.
Overall vision: Our vision is to make DeFi fairer, more accessible, and cheaper to access. This is critical to onboard the next wave of non-crypto users into the DeFi world.
While the near-term goal for Dfyn would be to provide a more efficient alternative for current DeFi use cases incorporating L2 with Matic, the medium-term goal is to leverage PolkaDot enabler technology to build bridges from the Ethereum network to other chains, and take advantage of other products emerging across chains, as well as other parallel efforts to build bridges across various chains. It makes sense to keep the larger picture in mind; Traditional finance gave us the current modern financial infrastructure, with liquidity and capital mobility fragmented and ‘bottle-necked’ across differing geographical exchanges and regulatory regimes.
With DeFi we have the opportunity to leverage the composability of smart contracts, as well as the ‘austere relentlessness of cryptography’ to reimagine capital and liquidity flows as they can potentially be, in an emerging Web 3.0 paradigm.
Under this overarching vision, the product feature set has evolved to the point that it is pretty much standard now — Dfyn will enable trading and yield farming as well as newer use cases and features such as derivatives and options that we are truly excited about. In due course, Dfyn will also be incorporating tweaks to the currently dominant Uniswap AMM model, and address issues such as impermanent loss and slippage. While the first version will be a yield-farm and an AMM-based exchange on the Matic sidechain, the principle can be extended to other projects as xDai, OMG, Flare (FXRP) as well as other L2 solutions that exchanges such as Uniswap are currently working on.
v1 —November — ->Launch with Matic L2, AMM + yield farming
v2 —December — -> yield aggregation and optimization tools
v3 — ->cross-chain integration efforts (date TBD)
Twitter : @_dfyn
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