Veteran cryptocurrency investor Polychain Capital has joined a funding spherical in DFX Finance, a brand new decentralized finance alternate 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 worldwide viewers. Asserting the information Wednesday, DFX mentioned that different buyers included business gamers like Hex Capital, CMS Holdings, Citadel Island Ventures and DeFi Alliance.
DFX is at present being developed by contributors from main crypto initiatives and companies just like the Ethereum Basis and ConsenSys. The platform is trying to present an answer for DeFi customers residing exterior of the USA who typically need to 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 tokenholders to vote for brand spanking new cash they’d like so as to add to the platform.
To be able 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 advised Cointelegraph.
Niraj Pant, companion at Polychain Capital, believes that DFX has stable potential to turn into a serious participant in DeFi business:
“By bringing FX into the DeFi house, we imagine DFX will allow dozens of novel functions. In the end, we imagine DFX is properly positioned to turn into a core piece of DeFi infrastructure.”
Amid the DeFi industry steadily gaining momentum, Polychain Capital has been actively investing in numerous DeFi initiatives. 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 alternate on Polkadot.