The Lightning Strikes Again! Dfyn V2’s Beta Mainnet is Now LIVE!
Experience the future of DeFi!
The day of reckoning is finally here, and we’re more than ready to deliver. For the past 18 months, our development team has been working tirelessly to elevate the benchmarks of not just Dfyn, but of the whole DeFi ecosystem.
Now before we get into the specifics about the Beta Mainnet launch, we just wanted to take a moment to walk you through the journey that led to the transformation of Dfyn 1.0 and the creation of Dfyn V 2.0.
After witnessing the highs of being the first DEX on Polygon to reach a peak TVL of $300 million, we saw a few challenges with the current (Uniswap V2) model that Dfyn adopted. An obvious solution would have been to fix these limitations. But we took that as an opportunity to understand the source of these issues.
We started off by conducting a comprehensive internal audit as well as identifying instances where the experience of DeFi traders was broken in the cryptosphere. And we found some glaring caveats within our DEX and every existing DEX that we felt were imperative to address. We discussed these limitations at length in this blog.
Now, at Dfyn, we build solutions with a foundational belief that we should always take the path of maximum resistance if the end result can elevate user experience. So this belief led to an ambitious decision to rebuild Dfyn’s capabilities and re-enter the ecosystem with a product that in no uncertain terms will become a one-stop solution for all trading-related activities.
If you’ve been following this space, you’d know that over the past few months, we’ve been breaking down the core capabilities of Dfyn V 2.0. But after months of buildup, publishing multiple education resources, and successfully completing our incentivized testnet campaign, we have now openly opened up access to our Beta Mainnet.
You can access Dfyn V 2.0’s Beta Mainnet via: https://exchange.dfyn.network/#/
Here are the peerless functionalities you’ll be able to leverage on Dfyn V 2.0’s Beta Mainnet
1. Place On-Chain Limit Orders:
Yes, you heard that right. With Dfyn V 2.0 you get the distinguished capability to place limit orders on the chain itself. This approach not only removes all centralized elements that still plague existing DEXs, but it also prevents the manipulation of orders.
We achieved this by leveraging a concept called the superimposed AMM model. With this model, we have successfully superimposed the two AMM models of Concentrated Liquidity and On-chain Limit Orders on a single concentrated liquidity curve.
We achieved this by introducing the logic of limit order ticks. These allow for highly concentrated liquidity on individual ticks, resulting in enhanced price precision.
In this context, ticks can be thought of as nothing more than an index. Each tick (index) will correspond to a specific price and liquidity. This enables users to add liquidity at a precise price, similar to how order book exchanges operate.
But you don’t have to worry about this complex architecture. This entire experience is abstracted for you inside a very easy-to-navigate interface. As a trader, you just have to place your favorable terms for processing a limit order and wait for it to be processed. You can buy or sell your crypto assets using limit orders seamlessly. You can even check open orders while placing a limit order. Within the orders tab, you can even check the status of your current and previous orders.
2. Access to an AMM with provisions for Concentrated Liquidity and Unified Pools:
Most AMMs followed the constant product model, based on the x*y=k price curve. In such a model, liquidity is distributed evenly across the entire interval, i.e., one could trade their assets within the infinite interval (0, ∞).
With the concentrated liquidity mechanics, as a liquidity provider (LP) one can accumulate their capital to smaller price intervals than (0, ∞), which enables individualized price curves, and infinitely higher capital efficiency, and this in turn deeper liquidity for traders like you.
Now the concentrated liquidity model could have been implemented in two ways:
a) As a tiered model where different pools are created for different fee tiers.
b) There is only one pool that operates with a dynamic fee.
In order to limit liquidity fragmentation and impermanent loss, we adopted the second approach.
Simply put, with Dfyn V 2.0’s concentrated liquidity architecture, as a trader, you will experience lesser price deviations in any range, and liquidity providers accrue more fees by parking their liquidity in price ranges defined by them.
And while this sounds like a complex process (it really is), from the user’s perspective, the interface is extremely intuitive.
The beta launch of our mainnet is just the beginning of the tiered launch of our suite of financial products built solely to help you maximize your profits.
In fact, in the spirit of elevating traders through our platform, we even initiated a first-of-a-kind Botathon where participants have been tasked to create bots to perform trades. The participants whose bots end up being the most profitable in three separate categories will get the opportunity to claim their stake in a prize pool of 250,000 $DFYN.
If you want to know more about the BOTathon, check out this blog.
Also, we are proud to share that the Dfyn smart contracts have officially passed the ultimate test and are now fully audited by Solidified, one of the largest smart contract auditing firms in the world.
Check out the Audit report here: https://www.dfyn.network/dfyn-v2-audit-report.pdf
About Dfyn
Dfyn is the world’s first on-chain limit order DEX. It combines the power of an RFQ matching engine with a concentrated liquidity AMM.
