DFX Stablecoin DEX Raises $5 Million in Seed Funding
DFX aims to solve a common problem in DeFi, the over-reliance on USD-based stablecoins.
- DFX raised $5 million from Polychain Capital, Hex Capital, DeFi Alliance, and Castle Island Ventures.
- The decentralized exchange has added multiple non-USD stablecoins to appeal to international users.
- The exchange team is comprised of former staff from ConsenSys, Ethereum Foundation, Deloitte, and Omisego among others.
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Polychain Capital led a $5 million seed round for DFX, a DEX aimed at expanding DeFi to international markets.
DFX Aims to Bring DeFi Worldwide
Former staff from the Ethereum Foundation, Deloitte, and ConsenSys are building out the DFX decentralized exchange for stablecoins.
The DEX protocol is designed to work with non-USD stablecoins, including three pegged to the Canadian and Singapore dollars and the Euro. The variety of currencies is aimed at bringing DeFi to a wider global audience.
We’re very excited to announce that we have raised north of $5M from a great group of strategic partners led by @polychain and @trueventures! We'll be launching our liquidity mining program today with 3 awesome stablecoins $CADC $EURS $XSGD paired with $USDC!
— DFX Finance (@DFXFinance) February 24, 2021
One of the pain points in DeFi is the over-reliance on USD stablecoins such as Tether and USDC, exposing international users to US dollar inflation. DFX will launch liquidity mining with the CADC, EURS, and XDGD stablecoins to offer non-USD options in DeFi.
DFX users will be able to vote for which new coins they would like to add to the protocol.
DeFi Boom Continues
Despite a bearish correction in the last week, DeFi is booming with over $37 billion in assets currently locked into the ecosystem.
However, the process of contributing liquidity or lending and borrowing can still be quite convoluted on many platforms. VC firms such as Polychain Capital clearly feel that solutions such as the DFX exchange’s answer to USD exposure are worth pursuing.
Other VCs contributing to the project include Hex Capital, DeFi Alliance, and Castle Island Ventures, the latter of which funded BlockFi.
Disclosure: One or more members of Crypto Briefing’s management team invested in DFX.