Our developers have been hard at work for a long time, and today we are excited to announce that the DeFiChain DEX & Liquidity Mining are going LIVE next Monday, November the 30th!
First ever DEX built on top of Bitcoin
DeFiChain is the first ever decentralized exchange to be built on top of the Bitcoin protocol, and apart from Uniswap — which is built on the Ethereum blockchain & only allows for swapping of ERC20-Tokens — there actually currently is no other 100% decentralized exchange like DeFiChain at all.
Advantages (& Disadvantages) of the DeFiChain DEX
- Unlike on centralized exchanges, on the DeFiChain DEX you are the one controlling your own private key. Your key, your coins, but also your responsibility to keep it safe.
- Being 100% decentralized, there is and can’t ever be any kind of Geoblocking like you see on most centralized exchanges.
- No KYC needed — remain completely anonymous.
- You have independent access to the DEX — no third party or stable, central website needed.
- The code is completely open-source, non-turing-complete & built on top of the extremely secure bitcoin protocol — safety is DeFiChain’s nature.
- The DeFiChain DEX works with Liquidity Pools — less efficient than centralized order matching, but allows for lucrative Liquidity Mining & is the only way to be 100% decentralized.
- Token Listing is completely independent and decentralized.
- There is no way to stop the DeFiChain DEX & shut it off — this is true even in the case of emergencies (e.g. hacks), though.
- The DeFiChain DEX is censorship-resistant and cannot be controlled by any central party or government.
Liquidity Mining for lucrative APY upwards of 300%!
Apart from using the DeFiChain DEX for swapping coins, there is also one other major use-case: Liquidity Mining.
By mining liquidity, you can easily earn an APY upwards of 300% — especially while the pool is still small now in the beginning.
Do Note: For the first week after launch, Liquidity Mining rewards are purposefully and temporarily kept at 1 DFI / block only.
The simple reason being that we want to give everyone a fair chance to be able to participate in the pool (especially when rewards are increased), and enough time to understand how the system works.
From Dec 9th, Liquidity Mining Rewards will be increased & really kick off with 100x the initial return: 100 DFI / block in Liquidity Mining rewards, for one full month.
After that, the Liquidity Mining rewards will settle at 45 DFI / block.
Beware the risks
There are 3 major risks associated with Liquidity Mining:
- Smart Contract Risk
There is of course always the risk that there could be some bug in DeFiChain’s code that could be exploited. Since the DeFi Blockchain is non-turing-complete & built on top of Bitcoin, however, this risk is generally low (and much lower than with Ethereum), because there are far less attack possibilities in the first place.
2. Project Risk
Are there any backdoors in the code? Do the people working on the project have fraudulent motives? Of course, we at DeFiChain can guarantee you that there aren’t any kind of backdoors or anything like that in the code — but you don’t have to trust our word, since everything is open-source and has been independently audited already.
3. Impermanent Loss
Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.
Preparing for the DEX & Liquidity Mining launch
It’s best to prepare yourself if you want to be amongst the first DEX users & liquidity miners, benefiting from a higher APY especially after the first week when Liquidity Mining rewards really kick off.
To do that,
- Download the official DeFiChain App where you will be able to do Liquidity Mining & use the DEX yourself
- Register for Cake DeFi who will handle the technical part of Liquidity Mining for you against a 15% of your rewards fee.
And if you have any questions about the DEX or Liquidity Mining, don’t forget to join the official DeFiChain telegram group.
Your DeFiChain Team