The prominent decentralized foreign exchange startup for stablecoins, DFX Finance, has announced a $5 million seed round. DFX raised more than $5 million in seed funding from Polychain and True Ventures to develop a new blockchain-powered market for stablecoins and introduce DeFi applications to a global audience. Publishing the news on Wednesday, DFX elaborated that other investors involved were industry players like Boost VC, CMS Holdings, Hex Capital, Lemniscap, DeFi Alliance, Castle Island Ventures, FBG Capital, Divergence Ventures, and SRC Capital.
Previous staff from Deloitte, Ethereum Foundation, and ConsenSys are developing DFX decentralized exchange for stablecoins. DFX will debut liquidity mining, starting with three foreign stablecoins. It includes the Canadian dollar-pegged CADC, euro-based EURS, and the Singapore dollar-pegged XDGD. It intends to accelerate the adoption of non-USD pegged stablecoins. Moreover, the platform is viewing to offer a solution for DeFi users living outside the United States. They usually have to take on U.S. dollar risk when collateralizing, depositing, and pooling liquidity.
DFX to add more stablecoins in the future
DFX plans to add more stablecoins with the growth of the platform. It will allow DFX token holders to vote for new coins they want to add to the platform. A partner at Polychain Capital, Niraj Pant, believes that DFX can become a significant player in the DeFi industry. He contended that by introducing FX into the DeFi space, DFX will allow dozens of novel applications. Eventually, he thinks that DFX is well-positioned to become a core piece of DeFi infrastructure.
Notwithstanding the bearish change in the last week, DeFi is expanding with over $37 billion in assets recently locked into the ecosystem. Nevertheless, the method of providing liquidity or lending and borrowing can still be quite convoluted on various platforms. Moreover, VC firms like Polychain Capital consider that solutions like the DFX exchange’s response to USD exposure are worth trying. Moreover, Polychain’s step in the DEX ecosystem increased with this most recent round, having funded in the derivative-focused DeriviDEX. In February, the company joined in a $1 million funding round for Manta Network to support the startup to develop a fully private decentralized exchange on Polkadot.
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