Decentralized Finance Chain (DeFiChain) is a decentralized blockchain platform aiming to enable fast, intelligent, and secure decentralized finance applications. It aims to provide full DeFi capabilities to Bitcoin’s ecosystem.
The DeFiChain Network uses a hybrid proof of stake/proof of work system for its governance and is anchored to the Bitcoin blockchain via merkle roots. Transactions on the DeFiChain Network run quickly and smoothly at low transaction fees, and have greatly decreased risks of smart contracts failing due to bugs.
Until a couple of days ago, DeFiChain supported tokenized Bitcoin, Ethereum, Tether, Litecoin, and Bitcoin Cash on its decentralized exchange, which enables liquidity mining for these tokens.
New dTokens on DeFiChain
DeFiChain has now listed four additional cryptocurrencies on its decentralized exchange. These include Walmart ($dWMT), Unilever ($dUL), US Oil Fund ($dUSO), and US Gas Fund ($dUNG).
It allows users to speculate on prices for their favorite assets without geographic restrictions, which is a serious alternative to the conventional financial brokerage firm.
Users will now be allowed to mint and exchange these decentralized assets for price exposure to the stocks and ETFs without having to leave the DeFi platform. They can also purchase fractions of dTokens on the DeFiChain Decentralized Exchange (DEX). DeFiChain already allows users to purchase fractions of dTokens for prices equivalent to the S&P500, Tesla, Apple, Alibabacom, GameStop, Nasdcaqh 100, Nvidia, Amazon and Microsoft.
As the VP of Marketing of the DeFiChain Accelerator Benjamin Rauch said, it was a community driven decision to list tokenized commodities. This further emphasizes the ethos of this blockchain which strongly rests in its community.
Who benefits from this?
Users across the world, especially those outside of the USA. Due to geographical limitations, stock market regulations, and other factors, millions of people around the world were unable to buy US shares. They could now access these shares through crypto tokens instead.
A dToken can be either bought as an investment, traded through the DeFiChain exchange, or used for liquidity mining on the DeFiChain exchange. Users can mint tokens on the DeFiChain chain by depositting BTC, DFI, USD, Tether (USDT), or USDC as collateral into the DeFiChain vault.
These tokens aren’t securities — they don’t give their holders any ownership, voting rights, dividend payments, or other benefits available for shareholders.
Instead of tracking and reflecting the actual market value, dTokens track and reflect a variety of variables, and leverage oracles to capture those values.
How Does DeFiChain Work?
Decentralized Finance Chain (DeFiChain) is an open source protocol for building decentralized finance applications. It was created by DeFi Accelerator team with an aim to bring DeFi to Bitcoin. Since Bitcoin has the largest market cap among cryptocurrencies, having DeFi built into it can be highly beneficial.
With its hybrid PoS/PoW mechanism, DeFiChain makes it easy for anyone to participate in the development of the protocol.
One additional feature of the DefiChain Ecosystem is that it can leverage the increased security provided by the Bitcoin blockchain. Since DefiChain is designed to be secure, users can enjoy lower transaction fees and faster transactions than they would if using Ethereum.
This particular ecosystem allows for the trading of various types of digital assets, including tokenized versions of Dogecoin (DOGE), Tether (USDT), Litecoin (LTC), Bitcoin (BTC) and Ether (ETH). It also offers support for decentralized exchange services and enables users to earn money through yield farming of its native token, DefiCoin (DFI).
The infrastructure that this decentralized finance (DeFi) ecosystem is built on has already been directly integrated with the CakedeFi platform, making it easy to generate passive incomes from your cryptocurrency investments. The DeFi Chain token is called DFI.
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