summary: Dfyn is a multi-chain AMM Decentralized Exchange (DEX) built on the Polygon Network. It was launched in 2020.
content: Dfyn is a multi-chain AMM Decentralized Exchange (DEX) which is building to be an inter-connected AMM with nodes spread on different blockchains and those AMMs will be able to share liquidity and enable cross-chain swaps. Dfyn is a true multi-chain AMM optimized for the cross-chain universe. Overview Dfyn Network is a community-governed DeFi (Decentralized Finance) project that offers a low-fee AMM exchange along with yield farming opportunities. It combines the unmatched liquidity of Ethereum with the scalability of L2 platforms. With Dfyn nodes spread across multiple Layer 1 and Layer 2 blockchains, Dfyn will act as a multi-chain Decentralized Exchange (DEX). This will allow Dfyn to plug into a liquidity super-mesh, enabling users to perform their asset trades seamlessly on several blockchains from a single interface. Dfyn will also build a decentralized swap station to swap large assets natively like BTC, ETH, ADA in a non-custodial way. Architecture Four main components of Dfyn’s broader architecture are: 1. Dfyn nodes: Nodes present across multiple Layer 1 and Layer 2 blockchains acting as AMMs. 2. A network of bridges: Router’s cross-chain liquidity protocol (XCLP) forms a network of bridges between isolated Dfyn nodes present on different blockchains. This concept can be better understood with the help of the following analogy: Dfyn nodes can be thought of as far-flung cities and Router as the highway that connects this city, thereby facilitating free movement of vehicles (in this case, assets) from any one city to the other. 3. ParaRouter: Every chain that has a Dfyn node on top of it will have a bridge contract known as ParaRouter deployed on it. In case of cross-chain asset transfers, the ParaRouter is able to lock a stablecoin and broadcast an event that can be picked up by the listener associated with Central Route to take action. 4. Central Router: It is the hub that listens to the event on ParaRouters, validates them, and forwards the event for further processing to the destination chain. Dfyn as a DEX Dfyn’s working as a Decentralized Exchange (DEX) is quite similar to that of Uniswap. However, unlike Uniswap, where users can only exchange Ethereum-based assets, users of the Dfyn exchange will be able to perform asset exchanges atop multiple blockchains. Dfyn as an AMM Whenever a user request is received for a particular asset trade on a particular blockchain, Dfyn’s AMM requests Router to traverse not only through the same blockchain but also through different blockchains and their AMMs to fulfill the order at the right prices with the least slippage. For example, let us say, Router finds a better ETH/USDT price on a venue on the Solana blockchain instead of Uniswap on Ethereum, so Router will try to fill that order from Solana. How Dfyn ensure gasless transactions Their partnership with Biconomy and their integration of meta-transactions ensures that all transactions on the Dfyn network remain gasless for the Polygon network. Token Utility Dfyn’s native utility token, the DFYN token, will perform a crucial role in the functioning of the Dfyn ecosystem. The DFYN token is expected to have multiple utilities. Governance The holders of the DFYN token will be able to use their tokens to take part in Dfyn’s governance by voting on Dfyn’s proposals concerning protocol amendments and upgrades. Although the specifics in regard to the voting mechanism have not yet been finalized, it is expected that each holder’s votes will be weighed against the amount of DFYN tokens held by them. Revenue sharing A competitive 0.3% fee is charged over each trade taking place over Dfyn. Of this fee, 0.25% is distributed to the liquidity providers in proportion to their contribution to the liquidity pool, while the remaining 0.05% is distributed to DFYN governance pool. Dfyn’s DEX and AMM The current version of the Dfyn exchange (exchange.dfyn.network) is a turbo-charged Uniswap, offering free, superfast and gasless transactions, through the integration of meta-transactions. The current iteration allows bridging of liquidity from Ethereum to Polygon’s Layer 2 implementation. Dfyn has already demonstrated its utility and effectiveness since the Dfyn AMM node deployed currently on the Polygon network is home to over $3 million in liquidity and is processing over 10,000 transactions on a daily basis. At the current gas prices, a swap would cost users at least $40 on Uniswap. This translates to savings of over $400,000 per day for the community by using the Dfyn L2 AMM over any ETH AMM. Dfyn’s Farming Projects In association with 10 different DeFi (Decentralized Finance) projects, Dfyn.network and Router protocol have launched an instant and gasless farming ecosystem named Galaxy Farm. Since its launch in February, the project has witnessed prodigious success. In particular, the second iteration of Galaxy Farm, launched in early April, has recorded a substantial increase in the number of transactions on the network as well as the number of token holders taking part in the farm. As per the early estimates, the exciting multifarming project hosted on Dyfn.network has allowed users to save over a $1 million in Ethereum transaction fees within a week of its launch. The immense love shown by the DeFi (Decentralized Finance) community for this project is a testament to the power of L2 solutions in the DeFi (Decentralized Finance) space, when applied diligently. Roadmap 2020 Q3 - Development Starts : Launch beta AMM exchange on Layer-2 Polygon (exchange.dfyn.network). 2020 Q4 - Spacefarm One week farm sprint on L1 - crossed $3 million TVL Meta-transactions integrated; Zero gas costs for users. 2021 Q1 - Galaxyfarm Crossed $2M in TVL in a day L2 farm yielding 5 tokens for every liquidity pair. 2021 Q2 - Dfyn nodes on other chains - BSC, Polka, Avalanche, Solana; Dfyn token as collateral on platforms TGE Listing on Uniswap L1/Dfyn L2. 2021 Q3 - Integration with Router Aggregator Single Asset staking/impermanent loss hedging Launch of cross-chain IDO platform (L2); ‘Intelligent’ Market Maker. 2021 Q4 - Cross-chain credit markets infra/tools to enable seamless cross-collateralization and borrowing across chains. Team 1. Ramani Ramachandran - CEO & Co -founder 2. Chandan Choudhury - Co -founder 3. Shubham Singh - CTO & Co -founder 4. Priyeshu Garg - Co -founder 5. Mounica Durga - Co -founder