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DFX Raises $5 Million to Bring Foreign Exchange to the Blockchain

cryptobriefing.com 24 February 2021 14:38, UTC
Reading time: ~3 m

DFX, a decentralized foreign exchange protocol optimized for stablecoins, raised more than $5 million in seed funding from Polychain Capital and True Ventures.

Participating investors include Boost VC, Hex Capital, Lemniscap, CMS Holdings, Castle Island Ventures, FBG Capital, DeFi Alliance, Divergence Ventures, and SRC Capital and strategic advisors Noah Jessop, Daniel Que, Nemil Dalal, Russell Verbeeten, and Michael Dunworth.

DFX aims to bootstrap liquidity and garner more adoption of non-USD-based stablecoins, beginning with liquidity mining launching with three foreign stablecoins: CADC, EURS, and XSGD. The company will provide the most competitive interest rates for liquidity of CADC, EURS, and XSGD currency pairs. The goal is to release a decentralized exchange optimized for foreign stablecoins using FX feeds supplied by oracles.

“We are on a mission to build the infrastructure to enable on-chain FX swaps that minimize slippage, optimize capital and maximize utility,” said Kevin Zhang, core contributor at DFX. “We’re creating a new market for non-USD currencies and opening up DeFi applications to a global audience that use these currencies.” Other team members include DeFi veterans Henry Chan, Adrian Li, and Kendrick Tan, who have worked on numerous other Ethereum projects in the space. They have come together to build an inclusive protocol around a global community.

“We’re excited to support the talented DFX team as they expand the suite of stablecoins available in the DeFi ecosystem. By bringing FX into the DeFi space, we believe DFX will enable dozens of novel applications. Ultimately, we believe DFX is well-positioned to become a core piece of DeFi infrastructure,” said Niraj Pant, partner at Polychain Capital.

Many DeFi users living outside of the U.S. have to take on USD risk when depositing, collateralizing, and pooling liquidity. DFX provides options for those seeking to diversify their risk outside of USD using their native currency. As much as USD is generally considered the global reserve currency, most of the world still transacts with their own native currency in a day-to-day manner. DFX wants to ensure they have the option to leverage and utilize DeFi.

“We like to invest in co-founding teams who have worked together successfully before and who are driven by a greater mission,” said Adam D’Augelli, partner at True Ventures. “Kevin and the DFX team have both, in addition to deep ties to the Ethereum community. They’re fast-moving, sharp, community-focused, and looking to solve a high-impact problem in this space. We’re excited to partner with them early on.” 

“Kevin and Henry have built one of the largest fiat on/off ramps in Canada and are now leveraging that experience to build DFX,” said Ali Saheli, founder at Hex Capital. “We believe DFX will be a crucial building block in making DeFi truly decentralized by onboarding new users from all over the world with their native currencies.” 

About DFX

DFX is bringing more foreign stablecoins into its ecosystem to create a network of fiat-backed stablecoins. The team is on a mission to build the largest on-chain FX network with the most liquidity and coverage — and the best prices.

Disclosure: One or more members of Crypto Briefing’s management team invested in DFX. 

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