DeFiChain Blog

TABLE OF CONTENTS What is collateralization? What is a liquidation and when does it happen? How does an auction work, and how do I participate in an auction? How do I place a bid on an auction? With the latest update, DeFiChain now supports the minting of Decentralized Assets via it’s proprietary loan mechanism. As a result, it’s now possible to mint, trade and even liquidity mine Decentralized Assets – also known as dTokens – with just a few clicks on your mobile phone, using our brand new DeFiChain light wallet. In our previous article, we already walked you through the process of creating a Vault, adding collateral to your Vault, and we even showed you how to take out a loan in the form of a dToken like dTSLA or dGOOGL. In this article, we would like to take a closer look at the mechanism behind Vaults and would like to address the following question: What happens when your collateral is no longer high enough to secure your loan? What is collateralization? Before we dive deeper into...

Decentralized Assets are live, and Liquidity Mining rewards for all dToken pools have started pouring in with hundreds of percent in annual returns for each of the pools, making it a very lucrative endeavour for all DeFiChain users. In this article, we will answer the most frequently asked questions (FAQs) about Decentralized Assets and Liquidity Mining with dToken. What are dTokens? Simply explained! When will the DUSD price be at 1 USD? What is the difference between buying dTokens on the Decentralized Exchange and minting them yourself with a Vault? Why are vaults halted? How does liquidation work? What is the liquidity mining block reward in DFI? What are the risks associated with Decentralized Assets? By how much should my Vault be over collateralized? What's the best strategy to make money with Decentralized Assets? If I mint a dToken (e.g. 1 dTSLA), how much do I then have to pay back? What are dTokens? Simply explained! dTokens allow you to get price exposure to Decentraliz...

We just introduced our new Liquidity Mining product on decentralized assets today. From now on, it’s possible to generate a regular income by utilizing the full potential of your decentralized assets such as dTSLA or dGOOGL with just a few clicks on your mobile phone using our brand new DeFiChain light wallet. DeFiChain’s Liquidity Mining on decentralized assets is based on its loan feature and follows sound game theoretical principles. All 15 newly introduced decentralized assets, also called dTokens, are trading against DUSD –– also a dToken, whose value is supposed to be very close to USD, but ultimately depends on demand and supply on the decentralized exchange (DEX). How comes that the DUSD price can diverge from 1 USD? Let’s say you would like to participate in the dTSLA-DUSD Liquidity Mining pool with your dTSLA tokens, then you also have to supply the same value of DUSD to be able to enter the liquidity pool and generate liquidity mining rewards in return for supplying liquidit...

In the last article, we explained what Decentralized Assets on DeFiChain are and how they work. Now, we are going to discuss why it may very well be possible to double your money with Decentralized Assets in the next few weeks alone, and how this is actually possible. Reasons why you might be able to double your money with Decentralized Assets As you learned in the last article, Decentralized Assets and with that liquidity pools will soon be launching on DeFiChain. Last year, when Liquidity Mining first launched on the Decentralized Exchange, we saw this happen with the DFI price: It went from just below 20 cents to over 2 dollars within weeks. Are we going to see the same this time around? Of course, nobody can predict that, and it is unlikely that history will repeat in the exact same way as it did before. But: history often rhymes. This time, there are more variables in play. Last year, when the Decentralized Exchange and Liquidity Mining on DeFiChain first launched, there were only...

Decentralized Asset Tokens or dTokens on DeFiChain are an entirely new and revolutionary form of crypto investments. These dTokens can be created (minted) by anyone on the DeFiChain blockchain, simply by first locking the blockchain native coin DFI (with the option to add up to 50% of the collateral in BTC, USDT and USDC) into a vault. A dToken can then be minted and taken out in the form of a decentralized loan, which is collateralized by crypto. The price when minting a dToken is set by pricing oracles as a point of reference (for example, a TSLA oracle price is used to create dTSLA). A dToken can then either be held as an investment, traded on the DeFiChain DEX, or used for Liquidity Mining on the DEX. A dToken’s price moves freely and independently of the oracle price, depending on supply and demand of a given dToken on the DeFiChain DEX. In order to close a loan and get back the collateralized cryptocurrencies, the corresponding dToken has to be paid back, with interest, all of wh...

In the previous blog post we saw the inherent huge potential of these decentralized assets. It’s even possible to double, triple or even quadruple your investment with the upcoming Liquidity Mining with dTokens on DeFiChain. There are a total of 3 distinctive strategies that you can use to unleash the full potential of the liquidity craziness starting on Monday, December 6. Which strategy you ultimately pick depends on your risk tolerance. So let’s have a look at how you can choose the ideal strategy for yourself. Strategy #1: Hold on to your DFI WHAT? The first strategy is all about holding on to your DFI. It does not matter if you hold them on an exchange, on your DeFiChain wallet or in your Cake DeFi account. All you have to do is to keep them there and DO NOT SELL them. Alternatively you can also put them into Staking or the traditional Liquidity Mining with BTC, ETH etc.. It can’t be easier than that! WHO? The first strategy is most likely the easiest one and is the perfect strate...

After learning about the most important strategies in the previous blog post, we’ll now touch on further tactics to allow you to best capitalize on the release of Liquidity Mining Rewards –– coming on Monday, December 6. Most of the following tactics can only be used with strategy #2 which we have explained in the previous blog post. But there are still others that you can pursue with all other strategies, without having to use a Vault to mint your own dTokens. #1 Which dTokens should you create? The crucial thing here is to observe the situation on Monday, December 6, right at the beginning when Liquidity Mining rewards are introduced. By creating dTokens using your Vault, you enjoy a high degree of flexibility, and can quickly jump into the highest Liquidity Mining pools to either liquidity mine, or simply swap from one token to another one. Nevertheless, you should always try to diversify your capital and shouldn’t put all your eggs into just a single Liquidity Pool. It would make s...

Table of contents How to create a Vault How to add collateral to your Vault What can I do now with my dTokens? Liquidity Mining Repaying your Loan and closing your Vault After you have already familiarised yourself in detail with the theoretical framework of decentralized assets in our last article, we now want to put it into practice. Therefore, we will now take you on a journey through the new DeFiChain mobile app, where we will show you how you can create dTokens through the use of Vaults and how to make them work for you (more information on Vaults can be found here). Alternatively you can also watch the following video: Before we start, please make sure that you use the latest app version -- the current version on iOS is 0.17.1. To unleash the app’s full potential and to make sure that all functionalities work fine, your app always has to be up-to-date. When you start the app for the first time, you will certainly notice the new "Loans" button in the footer of the app, b...