Recap on the AMA in Binance TG
On September 22nd, Binance invited dForce to their official English Community to talk about thought leadership in DeFi and next steps for dForce. Mindao Yang, Core Contributor of dForce attended the AMA on dForce’s behalf.
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- dforce’s multichain strategy: dForce DAO is a community-driven project. dForce focuses on EVM-compatible chains, and priorities on Ethereum aligned chains like Polygon, Arbitrum, and Optimism and BSC for balance of security and user adoption.
- dForce’s risk management is implemented on multiple levels, through working with the world’s best security audit firms, running Bug Bounty programs and performing risk assessments in accordance with dForce Risk Framework for each asset supported.
- dForce was the very first DeFi protocol deployed on BSC. dForce has ongoing DF rewards distributed to liquidity providers, so users who hold assets on BSC can earn rewards continuously via https://dforce.network/
- Re USX, dForce’s cornerstone protocol matrix: USX is an over-collateralized stablecoin that can be minted in two ways. 1. Mint by taking out USX loan by collateralizing other ERC20 tokens, or 2. Users act as borrowers and use USX as collateral for a loan from another protocol on dForce platform
- Benefits of being a DF token holder include governance controls and staking yields. dForce pioneers the hybrid staking model (i.e.both Free Staking and Lock-up Staking are available). Free Staking’s yield revolves around APY of 4–5%, and Lock-up Staking’s about 18% for a lock up of 2.1 years
Full recap of the AMA below:
Binance Host: What is dForce protocol stack and DeFi matrix? Would you comment on multichain expansion?
Mindao: dForce is a complete set of decentralized finance protocols covering assets, lending, and trading, serving as DeFi infrastructure in Web3. dForce is on Ethereum, Arbitrum, Optimism, BSC, Polygon, Avalanche, and KAVA, evolving into a true multi-chain interoperable Web3 infrastructure.
dForce DAO is a community-driven project, with major protocol changes driven by the community and jointly decided by dForce token (DF) holders through governance.dForce is backed by a world-class investor consortium including Multicoin Capital, CMBI and Huobi Capital.
For our multichain strategies, we’re focusing on EVM-compatible chains which is definitely the most cost-efficient and secure way to do multichain expansion. The industry has witnessed close to $10 billion hacked across many different DeFi protocols during DeFi summer. That’s why we prioritize EVM-compatible chains when we are thinking of multichain expansion. Security is always our first concern.
In addition to that, we also prioritize Ethereum aligned chains like Polygon, Arbitrum, and Optimism and also on more retail-facing chains liek BSC, so we could have a more balanced trade-off on security and adoption.
dForce’s Core Protocols include the following:
USX is the most important DeFi primitive within dForce’s protocol matrix. As a decentralized stablecoin, USX implements a dual model (pool-based & vault-based) with hybrid interest rate policy, making it highly efficient and flexible to support collaterals of different risk profiles in isolation. USX is powered by protocol-controlled liquidity to facilitate protocol-to-protocol integrations, as well as cross-chain bridge that allow users to move USX across supported blockchains with zero slippage and uncapped limit.
dForce Lending is a pool-based multi-sided lending protocol which supports multiple collaterals with a market-driven dynamic interest rate model. dForce Lending has undergone extensive code reviews and security audits by Trail of Bits, ConsenSys Diligence, CertiK, Certora (formal verification), with a bug bounty launched through Immunefi. dForce Lending has been deployed for over 1 year and is well battle-tested.
dForce’s core developer team has built a bridge directly on dForce.network. Users can transfer tokens across different blockchains directly here, which makes it more convenient than other methods such as using CBridge or various other bridging features. Utilizing these methods, users are able to enjoy instant, low-cost transfer of USX and DF across all supported L2s and blockchains.
dForce Trade is a DEX aggregator utilizing algorithm to search for the best trading price and aggregate proper liquidity across multiple platforms to deliver an optimized trade.
Binance Host: Would you comment on the safety aspects of dForce?
Mindao: We’ve placed a lot of emphasis on Security.
We are taking extensive measures to ensure risk management is implemented on multiple levels:
- We engaged the world’s best audit firms for security audits and formal verifications for dForce protocols, including Trail of Bits, ConsenSys Diligence, Quantstamp, Certik, Certora, PeckShield, SlowMist, SECBIT. Click here to view full reports.
- We launched a Bug Bounty program on Immunefi to encourage security researchers, white hats, community’s participation in identifying potential vulnerabilities in dForce protocols and receive bounty rewards.
- We perform risk assessments in accordance with dForce Risk Framework for each asset supported.
- Here are our audit partners and respective Audit Reports
Binance Host: Tell us about any current partnership dForce has with Binance, and how Binance users can utilize dForce
Mindao: We were the very first DeFi protocol deployed on BSC. dForce has ongoing DF rewards distributed to liquidity providers of different stablecoins on BSC through dForce Lending protocol, and there’s also liquidity mining initiatives. LM is also available on other chains including Ethereum, Arbitrum, Polygon, and Optimism.
Binance users can earn rewards continuously on BSC, per the schedule below, which is a detailed schedule of DF allocation across lending, borrowing and minting stablecoins on BSC.
Binance users can visit dForce Forum to view the gauge (update on a weekly basis) and click here to see related tutorials.
We believe liquidity mining is very important as the starting point for protocols to initiate collaboration with CEX and other protocols.
At the moment dForce is also experimenting with protocol-owned liquidity, which means protocol does not rent the liquidity instead they own the liquidity. This is an innovative way to run the protocol; protocol does not have to pay for the liquidity mining. Since we have launched the protocol-owned-liquidity, all DF-paired are not provided by the protocol, essentially, we don’t need to give oversized emission to liquidity providers.
Through DeFi summer, we have learned that protocol has to control its own liquidity in a way where you don’t have to endlessly give away your governance token. Many protocols are following this route including Maker and Frax, and that’s exactly what dForce is doing.
Binance Host: Let’s go more in-depth about USX!
Mindao: USX is the cornerstone of dForce’s protocol matrix, an over-collateralized stablecoin that can be minted in two ways.
First, borrowers can take out a loan using their collateral, which can be any ERC20 token supported by dForce.
Second, borrowers can use USX as collateral for a loan from another protocol on the dForce platform
USX has several features that make it stand out from other DeFi stablecoins such as DAI：
- It can be minted through Vault (single collateral), or
- Borrowed from another protocol (pool-based)
- USX adopts a hybrid interest rate policy, 1) fixed interest rate and 2) range-bound market interest rate, which enables DF holders to determine interest rates for all vaults directly, as well as keep interest rates range-bound via controlling USX supply in the secondary markets
- A multichain liquidity conduit which allows users to move USX across chains with zero slippage and uncapped limits. The protocol is 100% decentralized with DF holders governing the protocol, including but not limited to parameter setting, liquidity operation, onboarding of new collaterals, new feature
The fact it is over-collateralized means that for every $1 of USX a user mints, there is more than $1 worth collateral deposited.
What happens if there’s a rapid change in the price of collaterals in the market? If a user wants to avoid getting liquidated, then the user would need to top up his/her collateral position.
Binance Host: Tell us more about DF Token, benefits of being a DF holder, including any Staking available.
Mindao: dForce Token (DF) is the governance token across the network, giving DF holders complete control over decisions concerning dForce protocols, including onboarding of new assets and collaterals, changes to risk parameters, fee accrual, interest alignments, etc.
DF token is the governance token across the dForce network. dForce has gone through a grand update and Tokenomics flywheel (link: https://forum.dforce.network/t/dforce-v3-the-grand-upgrade-and-tokenomics-flywheel/728).
Essentially, the tokenomics update combines novel modules such as PDLP (Protocol-Direct-Liquidity-Provision) and POO (Protocol-Owned-Operator) to combat liquidity shortage effectively for protocols integrated with USX, and this liquidity flows into the dForce Lending protocol. The final result is a value accrual ecosystem for the DF token.
dForce pioneers in staking by introducing a hybrid model featuring both Free Staking (stake and unstake at any time) and Lock-up Staking (veToken model with a lock-up period from 1 week up to 4-year), which is the first of its kind in DeFi.
- Free Staking has no lock-up requirements, DF stakers can unstake at any time, however, the Free Staking will feature lower yield and less voting rights than Lock-up Staking.
- For Lock-up Staking, DF holders can choose a lock-up period for staking from 1 week up to 4 years. There will be no time decay during the lock-up period (the veDF balance holds constantly throughout the selected period) Compared with Free Staking, veDF token holders (participants in Lock-up Staking) will receive a boost on both staking rewards and voting weights.
- As of today, around 25% of total circulated DF tokens (or 100 m DF tokens) has entered into the dForce Staking Portal (available on the Ethereum mainnet only). Free Staking has a staking APY of 4.5%, and Lock-up Staking has a total of US$23 mil staked with average lock-up period of 2.1 years and APY of 18%.
We also have an ecosystem partner loopfi.io, which support liquid staking for veDF token. So if you stake your DF via Loopfi, you will have additional rewards, the staking APY is pretty decent 87%:
dForce continues to partner with major industry leaders. We believe dForce DAO and community’s continued efforts to grow are shining through this prevalent bear market.
We will continue to build.