DeFiChain, the world’s first native DeFi blockchain devoted to decentralized monetary applications and services for Bitcoin, has today announced the launch of decentralized asset trading (or dTokens) in the form of loan tokens, to provide greater liquidity for cryptocurrencies and greater access across financial asset types.
DeFiChain today delivered multiple asset class tokens, including real-estate, commodities, bonds, precious metals, FOREX and equities – referred to as dTokens (or decentralized loan tokens). This form of decentralized asset trading is one of the newest and most anticipated innovations to be introduced in the industry. Unlike other OTC services or even some blockchain protocols, decentralized assets on DeFiChain are not securities, but actually decentralized loan tokens minted by DeFiChain users. The holding of these asset tokens does not offer users any ownership of underlying assets, as it does with traditional stock or asset market trading. Instead, DeFiChain has created a new and unique form of decentralized asset trading that in part, tracks a number of variable factors of listed companies, such as Apple Inc., Tesla Inc., Amazon.com Inc. and GameStop Corp., as well as other ETFs. The full list of dTokens can be found on www.defiscan.live.
Decentralized assets in the form of dTokens will be collateralized against cryptocurrencies, via an intricate yet robust DeFi vault and loan system, requiring users to fund their loans with a minimum of 50 per cent in DFI (DeFiChain’s native digital currency) in order to facilitate the minting of DUSD and/or dToken. At launch, the collateralization ratio starts at 200% and higher, which means that the dTokens are overcollateralized on-chain at a minimum rate of twice their values. In turn, experienced and novice users have the ability to trade DeFi stock and asset tokens freely in the same way they would trade cryptocurrencies on a DEX, all without having to pay costly intermediary fees.
Julian Hosp, Co-founder of DeFiChain, “DeFiChain, being a decentralized blockchain, serves users from all around the world, some of whom do not have access to traditional financial markets. Based on all of the conversations taking place on DeFiChain’s community channels, it’s safe to say that the entire community is thrilled by the launch.”
“When we initially founded DeFiChain, our vision was to provide access to decentralized financial services and applications servicing millions around the globe in support of a more inclusive financial future, in a highly secure manner, without smart contract vulnerabilities that bound to hacks, exploits and “rug-pulls”. Since taking the conscious decision to step back – thereby making it a truly decentralized project that is fully governed by its users – it’s impressive to witness what they’ve created. This really is a financial and technological bridge that will aim to democratize value creation and transfer easily, seamlessly, in a fully transparent and trustless manner,” he added.
dTokens on DeFiChain can be minted in fractions through the utilization of the decentralized loan mechanics, by over-collateralizing cryptocurrencies through a vault system, or purchased via the DeFiChain Decentralized Exchange (DEX). These rules have been implemented to calculate and automate multiple factors such as collateralization ratios, interest rates, liquidation processes, as well as the minting of decentralized assets and trading, completely backed by crypto.
Decentralized asset trading will be facilitated, priced and settled in DUSD, a decentralized stablecoin algorithmically tied to the value of the U.S. Dollar. Through the vault and loan mechanism, users can create a form of exchange between a dToken and cryptocurrency, which users can provide liquidity to and eventually, liquidity mine for rewards. This architecture ultimately powers the decentralized asset trading mechanics on DeFiChain in a trustless manner, and utilizes DeFiChain’s native digital currency, DFI, as well as BTC, USDC, USDT and DUSD.
The DeFiChain Ticker Council added, “This is something that we – as the community – have been pushing to launch on DeFiChain for a long time. Users will have the ability to Liquidity Mine for rewards after minting asset tokens, and this is something that we are thrilled to be able to deliver in such an exciting format.”
For complete transparency, governance of decentralized assets will be carried out collectively by masternode owners and operators on DeFiChain, which will occur on-chain in a fully decentralized manner. All transactions, vault information and even oracle details are trackable and viewable on DeFiScan.
DeFiChain will continue to list popular assets decentrally, as well as introduce innovative additional features in due course. Being a fully decentralized blockchain with on-chain governance, interested parties are not required to complete identity verification to be able to hold decentralized stock tokens on DeFiChain.
DeFiChain is a decentralized blockchain platform dedicated to enabling fast, intelligent, and transparent decentralized financial services and applications. Its goal is to bring full DeFi capabilities to the Bitcoin ecosystem.
The network operates on a hybrid Proof-of-Stake (PoS)/Proof-of-Work (PoW) consensus mechanism, and leverages Bitcoin’s security by anchoring to the Bitcoin blockchain (via Merkle root) every few blocks. Being non-Turing complete and dedicating the functionality of the blockchain specifically to decentralized finance, DeFiChain provides high transaction throughput at low gas rates with significantly reduced risk of errors, and intelligent feature development.
DeFiChain currently supports tokenized BTC, ETH, USDC, USDT, DOGE, LTC and BCH on the DeFiChain DEX, which enables liquidity mining for these coins.
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