What is Dfyn?
Ready, set, DeFi! The race is on, and anyone with a good idea and a solid blockchain can join in. With the explosion of DeFi over the past couple years, new projects are popping up faster than you can say "smart contract." But while the competition is fierce, there's always room for innovative projects that can push the boundaries of what's possible in the DeFi space. And that's where Dfyn Protocol comes in.
Built on the Polygon network, Dfyn is a DEX that's optimized for a multi-blockchain future. With support for a wide range of assets and trading pairs, Dfyn is designed to be flexible, scalable, and accessible to a global user base. And with lightning-fast transaction speeds and ultra-low fees, it's no wonder that Dfyn has quickly become one of the most popular DEXs in the DeFi space.
Although DeFi has experienced the ups and downs of the entire crypto industry, Dfyn has managed to attract liquidity to its protocol even in the most dire times. Furthermore, Dfyn has a comprehensive list of token pools where users can deposit to earn passive income.
At a closer look, Dfyn uses Router Protocol’s cross-chain bridges to seamlessly allow communication and value-transfer between different Dfyn nodes. This piece of infrastructure makes Dfyn reliant on Router Protocol for cross-chain transaction. To this day, Dfyn and Router Protocol have never been hacked.
Dfyn also has its own native token, called DFYN. It is a governance token and incentive token. DFYN token holders have the option to stake their tokens to gain voting rights and earn a share of the protocol fees.
How does Dfyn work?
Dfyn is a DEX that operates on the Polygon network. The protocol is designed to be fast, scalable, and flexible, offering users a seamless trading experience across a wide range of assets and trading pairs.
At its core, Dfyn is powered by AMMs, which use complex algorithms to determine the price of assets based on the balance of liquidity in the platform's pools. Unlike traditional order-book exchanges, Dfyn allows users to trade assets without relying on centralized intermediaries or market makers.
vDfyn Vault
The vDfyn Vault is where the DFYN rewards are generated. It is the heart of the Dfyn ecosystem, as it brings all participants together under the same purpose: secure the protocol and earn fees. The idea of a vault isn't new. One of the first DeFi protocols to implement it was Sushi. However, vDfyn is not a fork of of the xSushi vault, but is actually an upgraded version to comply with the new proxy contract standards.
All swaps on Dfyn exchange take a 0.3% fee — out of which 0.25% goes to the liquidity providers, and 0.05% goes to the Dfyn DAO. The idea with the vDfyn vault is to redistribute the 0.05% to the community members who wish to stake their Dfyn tokens.
By staking Dfyn tokens in the vDfyn vault, users will be able to mint vDfyn tokens. The vDfyn token will automatically earn users a share of protocol fees. 0.05% of the swap amount will be allocated to vDfyn holders and distributed proportionally between vDfyn holders.
vDfyn holders will be entitled to get all of the fees earned by the Dfyn.exchange — including the fees from swaps and the prediction markets and other products on the Dfyn roadmap. This means that the more users use the Dfyn.exchange and the more fees are accumulated, the more vDfyn will appreciate.
How to make money on Dfyn?
The primary mechanisms of making money on Dfyn revolve around providing liquidity, farming, and staking. Dfyn is approachable by beginners and advanced users alike. With a simple interface, all you need is an Ethereum wallet like MetaMask and some spare ETH or MATIC to pay for gas fees.
Dfyn Farming
Farming is one of the simplest ways to earn passive income on Dfyn protocol. The estimated APY varies from one pool to another. With increased liquidity come smaller, but more stable rewards. The biggest pools
If you are looking for juicier APYs, then look for more exotic token pairs. Higher APY always comes with a degree of risk because you supply crypto assets to a pool with much less liquidity. Be advised: in the event that liquidity is drained, your assets are at risk of impermanent loss.
In order to farm on Dfyn, follow these steps:
1. Go to the Dfyn app
2. Click on the "Pool" tab
3. Click on "Add Liquidity" button
4. Choose the tokens you want to add to the liquidity pair and click on "Supply"
5. Review the transaction details and click on "Supply"
6. Approve the transaction
7. Profit
But wait, there's more! With your LP token rewards you can go on and stake them on the Dfyn farms to gain $DFYN tokens.
In order to stake DFYN, follow these steps:
1. Go to the Dfyn app
2. Click on "More" tab and select "vDFYN"
3. Identify the farm that you’re eligible for and click "Deposit"
4. In the screen that opens up, click on "Deposit Dfyn LP Tokens"
5. Enter the amount of LP tokens you want to stake and click on "Approve"
6. Sign off the transaction and click "Deposit"
7. More profit!
With this last step you have staked your LP tokens on Dfyn to earn $DFYN tokens. You can withdraw the LP tokens from the farm anytime you want in accordance to the vesting schedule.
Dfyn Limit Order
Limit order is yet another way to manage your trading experience on the Dfyn protocol. With limit order you can buy or sell a crypto asset with a ceiling on the maximum price to be paid or the minimum price to be received.
Let's say you would like to buy WBTC at the price of $23,000, but the asset is trading at $25,000. Once you've placed a buy order at your desired price ($23,000 in this case), your order will be filled the moment WBTC hits this value. The opposite applies. If WBTC is trading at $25,000 and you place a sell order at $23,000, your sell order will be fulfilled at the desired value ($23,000 in this case).
Limit orders are a common feature on centralized exchanges. The addition of limit orders on Dfyn adds to the things you can do on the protocol.
Placing a limit order on Dfyn is simple! Simply follow these steps:
1. Go to the Dfyn app
2. Click on the "Swap" tab and then toggle to the "Limit" section
3. Enter the amount of tokens your would like to swap and the price at which you want to swap them. Alternatively you can mention the amount of the swapped token you would like to receive
4. After reviewing the details, click on "Place Limit Order"
5. Review the details and click on "Confirm Limit Order"
6. Sign the transaction
7. Done!
Congrats! You have just placed your limit order on Dfyn. The order will be filled once the tokenA/tokenB price on Dfyn Exchange matches your desired price. With this feature, you now have an easy way to exit your positions and manage the risk.
Price Prediction for Dfyn — Can it hit $100?
Buying and hodling DFYN — the native token of Dfyn— is one way of potentially making money on Dfyn.
DFYN serves as the governance token for the protocol and it's also used for sharing the protocol fees. Its value is therefore tied to the amount of fees that the protocol racks up.
By looking at its current price, it’s natural to think about the chance of DFYN hitting $100 per token. This can happen sooner, or way in the future, and is determined by a couple of ever changing factors.
Let’s examine the potential growth of the DFYN token by analyzing its tokenomics. DFYN’s current market cap sits comfortably at ${MARKET_CAP}. With {CIRCULATING_SUPPLY} DFYN tokens being in circulation today, that means a price of {PRICE} per DFYN.
How did we come to that calculation? It’s quite easy, the price of a DFYN token is equal to its current market cap divided by the number of tokens in circulation. Dividing ${MARKET_CAP} by {CIRCULATING_SUPPLY} gives us a result of {PRICE} for each DFYN coin.
By changing the order in the simple formula above we can use it to calculate other things as well. This helps us a lot because we can deduce the market cap of DFYN at different token prices. Then, we can use the result to compare it to the current state of the network and see what would be required for DFYN to hit that price.
At a price of $100 per token, that means the current market cap of DFYN would equal ${{CIRCULATING_SUPPLY} * 100}. Remember that we arrived at this number by multiplying the amount of circulating tokens by $100.
Now let’s shift our attention to the fully diluted market cap.
Some blockchains may have their tokenomics built in a way that only a small percentage of tokens are circulating at the beginning. This can be misleading because we don’t have the full picture and only take into account the current number of coins released in the market.
The fully diluted market cap represents the total value of a coin if all tokens were in circulation. DFYN’s whole supply of tokens is {MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} DFYN which means that no more coins above that number will ever be created.
These tokens are not created at the discretion of a specific entity. They are created automatically by the network to reward different actors that keep it secure.
How does this impact the price of DFYN? Taking into account the current price of a DFYN token, that would result in a fully diluted market cap of ${MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY * PRICE}. DFYN coins that have been burned are not taken into consideration because they have been permanently removed from circulation.
Whether it seems gigantic or not, the number we came to above only takes into account the current price of a DFYN token. Doing the same calculation but with a price of $100 gives us a result of ${{MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} * 100} for the DFYN protocol fully diluted market cap.
These are all crucial details to know when calculating if DFYN can reach the price of $100 per token. If the diluted market capitalization is way too high, the token has little room left to grow. Blockchains in general have no cap on the value they can reach, whether that number seems possible it’s totally up to you.
The future of DFYN depends solely on its growth as a network used by tens and hundreds of millions of users.
If you’re looking to add some DFYN to your portfolio, the most trusted places to get some are Binance and Coinbase.