A Closer Look at the September DFIP & CFP Voting Round

Five DeFiChain Improvement Proposal (DFIPs) are currently discussed on Reddit and will soon be up for vote in the latest governance voting round.

DFIPs:

1. Yield generation from 90% of the BTC backings for the DeFiChain community
2. Reducing fees for composite swaps on the native DEX
3. Reducing the implementation complexity of the dToken system restart by keeping the ticker "DUSD"
4. Manual commission payout to simplify tax calculation and reduce node computation load
5. More capital efficient DUSD loans
   

DFIPS:

DFIP 1: Yield Generation from BTC Backings

This proposal aims to utilize 90% of the Bitcoin (BTC) held in the backing address to generate yield, leveraging approximately $33.4 million in idle BTC to create additional value for the DeFiChain community.

Key Points:

• Utilization of BTC: 90% of the idle BTC will be used to generate yield through platforms like Bake.
• Automation and Efficiency: Rewards from yield generation will be used to buy and burn DeFiChain's stablecoin, DUSD, via automated bots.
• Encouraging New Products: This proposal also nudges platforms like Bake to offer staking products for BTC, potentially locking in substantial value for DeFiChain.

Harnessing BTC yield generation not only establishes a new revenue stream but also bolsters the stability and value appreciation of DUSD.

DFIP 2: Reducing Fees for Composite Swaps on the Native DEX

High fees associated with composite swaps on DeFiChain's native decentralized exchange (DEX) have been a pain point for users. This proposal seeks to alleviate this issue by implementing a more efficient fee structure.

Key Points:

• Current Issue: Composite swaps involving multiple pools incur high cumulative fees, disadvantaging certain trading strategies.
• Proposed Solution: A single fee per coin involved in the transaction, with only the highest fee being applied when multiple pools are involved.
• Community Benefits: Lower fees will support trading strategies, increase trading volume, and enhance the overall value of the DEX.

This change aims to make trading on the DeFiChain DEX more economical and attractive, fostering greater participation and liquidity.

DFIP 3: Simplifying the dToken System Restart

To reduce the complexity of the dToken system restart, this proposal suggests keeping the ticker "DUSD" instead of changing it to "USDD". This aims to streamline implementation and avoid potential marketing pitfalls.

Key Points:

• Reduction in Complexity: Maintaining the ticker "DUSD" simplifies the re-pegging and re-collateralization process.
• Marketing Advantages: Avoiding a name change circumvents the stigma associated with renaming and allows for a consistent marketing narrative.

By maintaining the existing ticker, this proposal ensures a smoother transition and effective communication strategy.

DFIP 4: Manual Commission Payouts

To ease the computational load on nodes and simplify tax calculations, this proposal recommends shifting from automatic liquidity mining reward payouts to a manual claiming system.

Key Points:

• Current Issues: Automatic payouts every 30 seconds create high computational stress and complicate tax reporting.
• Proposed Solution: Users can manually claim rewards at their convenience, reducing the frequency of transactions.
• Community Benefits: Simplified tax reporting and reduced node computation load may attract more liquidity miners.

This approach not only optimizes node performance but also makes tax compliance more manageable for users.

DFIP 5: More Capital Efficient DUSD Loans

The final proposal aims to improve capital efficiency by introducing a new loan scheme for DUSD loans, allowing for a collateralization level of 120%.

Key Points:

• Enhanced Capital Efficiency: The new loan scheme allows for faster re-collateralization and better leveraging of crypto positions.
• Community Benefits: This provides more favorable conditions for users looking to utilize DUSD loans, enhancing the attractiveness of DeFiChain's financial products.

By offering more capital-efficient loan options, this proposal seeks to bolster the utility and competitiveness of the DeFiChain ecosystem.

Final Words

The five proposals showcase the DeFiChain community's expanding vision — a unified drive toward meaningful adoption and ecosystem-level growth.

While the core developers put effort into enhancing protocol capabilities and decentralized finance features, contributions from the community are what will lead DeFiChain to the forefront of mainstream adoption.

Whether it is infrastructure reliability, developer growth, or exchange exposure - it ultimately comes down to a shared, inclusive outlook that values collective contributions regardless of background or credentials.

Further details and guidelines for submitting a Community Fund Proposal to support their own initiatives are available at github.com/DeFiCh/dfips#.