DeFi exchange protocol DFX raises $5M in seed funding

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Veteran cryptocurrency investor Polychain Capital has joined a funding spherical in DFX Finance, a brand new decentralized finance trade protocol optimized for non-U.S. greenback stablecoins.

DFX raised greater than $5 million in seed funding from Polychain and True Ventures to create a brand new blockchain-powered marketplace for stablecoins and open up DeFi functions to a world viewers. Asserting the information Wednesday, DFX stated that different traders included business gamers like Hex Capital, CMS Holdings, Citadel Island Ventures, and DeFi Alliance.

DFX is presently being developed by contributors from main crypto tasks and corporations just like the Ethereum Basis and ConsenSys. The platform is trying to present an answer for DeFi customers residing outdoors of the US who usually should tackle U.S. greenback danger when depositing, collateralizing and pooling liquidity.

As such, DFX will debut liquidity mining launching with three overseas stablecoins, together with the Canadian dollar-pegged CADC, euro-based EURS, and the Singapore dollar-pegged XDGD. Because the platform grows, DFX will add extra stablecoins, and plans to permit DFX token holders to vote for brand spanking new cash they’d like so as to add to the platform. 

As a way to allow liquidity mining, DFX is utilizing main U.S. dollar-pegged stablecoin USD Coin (USDC). “We leverage USDC within the coronary heart of DFX as all of our non-USD stablecoins are paired with USDC,” core DFX contributor Kevin Zhang informed Cointelegraph.

Niraj Pant, accomplice at Polychain Capital, believes that DFX has strong potential to develop into a significant participant in DeFi business:

“By bringing FX into the DeFi area, we imagine DFX will allow dozens of novel functions. Finally, we imagine DFX is effectively positioned to develop into a core piece of DeFi infrastructure.”

Amid the DeFi industry steadily gaining momentum, Polychain Capital has been actively investing in varied DeFi tasks. Earlier in February, the corporate participated in a $1 million funding round for Manta Network to assist the startup construct a totally non-public decentralized trade on Polkadot.