🇬🇧DeFiChain Transparency Report Q1 2021

defi Apr 16, 2021

In order to give our community and partners full transparency into what’s happening in front and behind the curtain at DeFiChain, we would like to publish our quarterly board report. For more information on the project please visit: https://www.defichain.com

Q4 Transparency Report Meeup & Video:

Join us LIVE on Remo today to interactively discuss the Q4 Transparency Report on 16th April 2021 at 14:00 UTC (9pm SGT and 3pm CET): https://live.remo.co/e/defichain-transparency-report-q1

A recording of the live session will be embedded down below as soon as it is ready:

We hope you appreciate the insights!

Thanks for your support and happy reading — Have fun! :)


Last quarter review

Foundation funds: https://explorer.defichain.io/#/DFI/mainnet/address/dJEbxbfufyPF14SC93yxiquECEfq4YSd9L = 273.714M DFI

Part of these funds were used to increase the liquidity mining rewards, which was approved by the masternodes.

Community development fund:

https://explorer.defichain.io/#/DFI/mainnet/address/dZcHjYhKtEM88TtZLjp314H2xZjkztXtRc = 12.6M DFI

  • DeFiChain was developed without any outside funding and DeFiChain did not pay anyone for its development.
  • DeFiChain Foundation’s annual burn rate is approximately 5,000 USD and includes basic cost of website fees, accounting fees, domain fees, e-mail services, etc.

Next quarter preview

  • There is a vote to burn all DFI the foundation holds: https://github.com/DeFiCh/dfips/issues/17
  • If the burn is successful, the foundation should install a law firmthat is the sole member and solely acts for the masternodes.

Looking beyond

  • The cryptocurrency markets depend a lot on the general sentiment around Bitcoin and the financial markets in general. This can bring unforeseeable challenges to the project’s long term viability.


Last quarter review

  • Clarke Quay Upgrade
  • Custom Rewards for Liquidity Pools. This allows liquidity pools to pay their rewards from a custom defined DeFiChain address, this was added mainly to extend the rewards timeline for liquidity pools.
  • Dakota Upgrade
  • Lowering of Masternode Collateral. The collateral required for running a masternode was dropped from 1,000,000 DFI to 20,000 DFI, this required a consensus change.
  • Anchoring Refactor. The anchoring system was completely re-written, it is more robust and the community has been actively anchoring and receiving rewards since this was released.
  • Stability and price swap protection fixes. As the community grew and blockchain activity increased substantially, we faced some teething issues. This allowed us to iron out some kinks and introduce some fixes. Namely, one of the major fixes was correcting the price protection for DEX swaps when the pool has low liquidity.
  • Pink Paper. Lays out the improvements, products and mechanisms that will be carried out by DeFiChain over the next months, covering governance, decentralized loan, futures, options, etc.

Next quarter preview

  • Interchain Exchange & Atomic Swap. A highly anticipated feature, in Q2 we plan to release our Interchain Exchange, allowing you to swap any asset on DeFiChain for BTC on Bitcoin blockchain, and vice versa.
  • Price Oracles. Price Oracles allows DeFiChain to obtain price feeds of real world assets, opening the way for collateralized loans, futures and other mechanisms that require the real market price of the asset, free of DeFi manipulation risks.
  • On-chain governance. This will allow us to automate the process of voting for and accepting or rejecting DFIPs (DeFiChain Improvement Proposals). Masternodes will be able to vote on DFIPs.
  • Futures. This will pave the way for the introduction of decentralized stocks being made available on DeFiChain.
  • Emission rate updates. New emission rate updates, assuming DFIP related to it is approved.

Looking beyond

  • Some of the things we are looking forward to:
  • Interchain Exchange. This will allow value to easily flow in and out of DeFiChain without having to go through a centralized exchange.
  • Many community projects have sprung up this quarter, and the DeFiChain community and developer ecosystem is growing.
  • Stocks, commodities trading via Futures!


Last quarter review

  • Stability Improvements and bug fixes. A major focus of Q1 on the Desktop Wallet was to improve the stability and iron out all the bugs. Many issues both small and major were fixed over the period of 3 months. In particular, we faced regular errors when users attempted to swap or use the DEX, which we eventually tracked down and eliminated.
  • Snapshot download. The app now allows users to download a snapshot from a centralized server. Although this relies on a centralized server, it does speed up the downloading process, and offers a convenient recovery mechanism if the user encounters any issues.
  • CSV Export. The app now allows users to export their transaction history in CSV form. This can be handy for tax purposes.
  • Jellyfish JS Library started. Implementation on the Jellyfish JavaScript library has begun. This library will lay the foundation for any frontend application that intends to interact with DeFiChain, including the light wallet (more info below).
  • Litecoin, Bitcoin Cash and Doge liquidity pools added. The interface and icons were updated to support the newly added liquidity pools for Litecoin, Bitcoin Cash and Doge.
  • Wallet Encryption. The app now allows encrypting the underlying blockchain wallet database, increasing security and peace of mind.
  • Masternode Management. The app now allows users to view information about running masternodes and create their own masternode provided they have enough collateral.

Next quarter preview

  • Light Wallet. We have found that running a full node on consumer PCs is not an adequate solution for mass adoption of DeFiChain, to address this in Q2 we plan to release a light wallet, which relies on an external node hosted on a public server.
  • Stability Improvements and bug fixes. Although many bugs were addressed in the previous quarter, there are still minor issues that the users are facing, and we will continue to address these.
  • Single Transaction View, Bitcoin SPV, and Interchain Exchange UX Refactor. We have begun work on a major refactor of the user interface, which will include a consolidated transaction view, the ability to transact on the Bitcoin blockchain and a front end interface to the interchain exchange system.
  • Separation of DFI. As a result of testing and user feedback, we have decided to split the UTXO and Account components on the interface and provide a way for the users to easily convert between the two.

Looking beyond

  • Light Wallet. The light wallet will open up the DeFiChain system to many more users that are running on less advanced hardware or simply do not desire to run a full node on their machine.
  • Mining Only support of Desktop Wallet. In addition to implementing the light wallet, once the light wallet is able to support the full functionality of the desktop wallet, we are considering relegating the Desktop Wallet to mining functionality, and leaving other feature support to the light wallet.
  • Jellyfish JS library and app ecosystem. The introduction of a well documented and stable set of libraries and APIs should serve to heavily grow the developer community and ecosystem.
  • Futures trading. Trading of futures to be done directly on the app itself.


Last quarter review

  • Expanded roadmap on defichain.com to 3, 5 and 10 years and beyond
  • Buy DFI button on every page in defichain.com that opens a list of exchanges, to allow users to quickly buy DFI
  • Bug bounty page with leaderboard

Next quarter preview

  • Improved explorer tracking DFI coins and tokens and other tokens, including burn amount and emission rates.
  • Governance companion site facilitating discussion and tracking of future and past governance proposals — DFIPs and CFPs.
  • Interchain exchange explorer showcasing and visualizing swaps and order books of ICX.

Looking beyond

  • Community has built many interesting explorers and visualization and there should be more to come from community as well


Last quarter review

  • The CDF can be traced on the public block explorer at address dZcHjYhKtEM88TtZLjp314H2xZjkztXtRc.
  • Details about the community development fund can be read up on here: https://www.defichain.io/white-paper/#community-development-fund
  • The DeFiChain-Community has voted on the first CDFP & the DeFiChain Foundation has implemented & funded the first Community Development Proposal (Dashboard: https://www.defichain-analytics.com/)
  • DeFiChain Foundation has started 4 new DFIPs (DeFiChain Improvement Proposals in January 2021 all of them were approved by the Community)
  • Sent out a Slido Survey with a Wish list to the Community
  • Beyond that, DeFiChain Foundation has not funded any external projects as the blockchain itself was developed over the past year.

Community Projects

DeFiChain Wiki: CDFP #6

► Website: https://defichain-wiki.com/

► GitHub: https://github.com/DeFiCh/dfips/issues/15

► Telegram: https://t.me/joinchat/WWFD9b7Y6ocVqf0G (@RobinTorque @LeonMethner)

► Twitter: @RobinTorqueDeFi @DrSonderbar

DeFiChain Explained: CDFP #2

► Website: defichain-explained.com

► GitHub: https://github.com/DeFiCh/dfips/issues/11

► Telegram: https://t.me/crypto_explained (@JonathanSabater @Santiago_Sabater)

► Twitter: Santiago__Sa

Smart DeFiChain Wallet: CDFP #4

UPDATE 16th Oct 2021:
► Old GitHub: https://github.com/DeFiCh-WalletApp
New GitHub Link: https://github.com/saiive/saiive.live/releases

► Telegram: https://t.me/joinchat/vg7t9fTF3H4wYjZk

► Twitter: @dpfaffenbauer & @p3root

DeFiChain Portfolio CDFP #3

► Website: https://defichain-wiki.com/wiki/DeFiChain-Portfolio

► GitHub: https://github.com/DeFi-PortfolioManagement/defi-portfolio

► Telegram: https://t.me/DeFiChainPortfolio

► Twitter: @danielkolibri & @ArthurEisener

DeFiChain-Income CDFP #5

► Website: www.defichain-income.com

► GitHub: https://github.com/Shelkovenkov/defichain-income

► Telegram: https://t.me/defichainincome (@ishelkovenkov)

► Twitter: @IgorShelkovenk1

DeFiChain-Analytics CDFP #1

► Website: https://www.defichain-analytics.com/

► GitHub: https://github.com/DeFi-Analytics/DeFi-Analytics

► Telegram: @DanielZirkel

► Twitter: @DanielZirkel

DeFiChain Incentives for Moderators CDFP #7

► Website: www.defichain.com

► GitHub: CFP7: https://github.com/DeFiCh/dfips/issues/16

► Telegram: List of all active Moderators

@pho — Moderator (Phoenix)

@DanielZirkel — Moderator (Daniel Zirkel)

@berndmack — Moderator (Bernd)

@Yannick1712 — Moderator (Yannik)

@DanielHie — Moderator (Daniel Mustermann)

@LeonMethner — Moderator (Leon)

@ToDesireCrypto — Moderator (Dave)

@Stonygan — Moderator (Andy L.)

Next quarter preview

  • DeFiChain Foundation is OPEN to receiving community proposalsthat are aligned with DeFiChain’s goals to be supported by the community development fund. Please submit proposals on Reddit: https://www.reddit.com/r/defiblockchain/
  • Projects that could be open for community development fund consideration can span from engineering (e.g. development of open source tools for DeFiChain), marketing (YouTube videos, blogs), and more, as long as they benefit DeFiChain and adds values to DeFiChain.
  • In the future proposals will be voted on by masternode voting.
  • Implementation of on-chain governance for the next voting cycle
  • Implementation of three new DFIPs (if approved)

Looking beyond

  • Finding quality projects worth funding.


Last quarter review

Next quarter preview

  • The main focus here is to grow our DFI holder base to over 50,000 DFI holders.
  • Also, to grow all our social media channels
  • Move more of the discussion and questions around DeFiChain from Telegram to Reddit and GitHub
  • It will be important to have the community help out and spread the word especially on Twitter
  • Decentralizing the discussion and questions into more independent groups and communities in many more languages
  • Starting on-chain governance for future votings for DFIPs & CDFPs

Looking beyond

  • As soon as we get larger, the DeFiChain community will get attacked by other DeFi communities — we have to be prepared for that.
  • Strong competition with other Turing complete blockchains.
  • Overtaking Uniswap as the biggest DEX (just 30% more growth to be the biggest DEX in the industry)


Last quarter review

Next quarter preview

  • Increase geographical user base especially in Chinese-speaking markets (to increase adoption and trading volume on exchanges)
  • Continue working on listing on more tier one exchanges
  • Conduct new audit on Bitcoin atomic swap functionality
  • Have DeFiChain DEX trading pairs and volume included on listing sites
  • Continue working to be included in Top 200 ranking on CoinMarketCap
  • Continue conversation with CoinGecko on circulating supply verification
  • Bring on more partners for endorsement and network effects

Looking beyond

  • Top tier one exchange listing is a high priority
  • Largest DeFi listing sites are still only ETH based and pushing back on listing DeFiChain (even BSC projects larger than Uniswap are excluded)


Last quarter review

Next quarter preview

  • Identify newer thought leadership opportunities across multiple channels including traditional media, social media and events.
  • Expand upon program, initiative and project reviews with key media channels.
  • Secure media partnerships to create direct contributions with specifically scouted channels.
  • Increase quality media coverage VS. pure quantitative, to ensure each piece has a dedicated output or outcome.
  • Launch media channel activities in China, with new team hires.

Looking beyond

  • Continue to increase brand awareness by building trust, credibility and advocacy by providing fair, honest and transparent communications to the community, influencers, key opinion leaders (KOLs) and target media
  • Continue to aggressively promote DeFiChain in an efficient and effective manner
  • Continue to compete effectively for share-of-voice across media channels and news portals with other Turing complete blockchains


Last quarter review

  • Facilitation of staking partnerships

Next quarter preview

  • Ensure growth of strong DFI uses cases while falling within the legal frameworks

Looking beyond

  • General uncertainties around legal & compliance in the crypto space


Official Website: https://defichain.com

Whitepaper: https://www.defichain.io/white-paper/

Pink Paper: https://github.com/DeFiCh/pinkpaper

Blockexplorer: http://explorer.defichain.com

GitHub / Source Code: https://github.com/DeFiCh/ain

Twitter: https://twitter.com/defichain

Medium/Blog: https://medium.com/@defiblockchain

Facebook: https://www.facebook.com/defichain.foundation

YouTube: https://www.youtube.com/channel/UCL635AjCJe6gNOD7Awlv4ug/

LinkedIn: https://www.linkedin.com/company/defichain/

Reddit: https://reddit.com/r/defiblockchain

Telegram: https://t.me/defiblockchain

Current DFI price: https://coinpaprika.com/coin/dfi-defi-chain/

DFI Fact Sheet: https://docs.google.com/document/d/1c-unHPPFKiAMSGRQu3A_RDO8JBplJonwQWT_6g5Lfcc/edit#

Media resources: https://www.defichain.com/media

For media inquiries, please contact: partners@defichain.com

Work inquiries: We work with C++ and JavaScript and would like to have you on our team! Contact us on partners@defichain.com


This transparency report does not constitute nor imply a prospectus of any sort. No wording contained herein should be construed as a solicitation for investment. Accordingly, this transparency report does not pertain in any way to an offering of securities in any jurisdiction worldwide whatsoever. Rather, this transparency report constitutes a description of the development and distribution of DeFiChain. Do not trade or invest in any coins, companies or entities based solely upon this information. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. Investors should conduct independent due diligence, with assistance from professional financial, legal and tax experts, on topics discussed in this document and develop a stand-alone judgment of the relevant markets prior to making any investment decision.

This document does not constitute nor imply a final technical specification of DeFiChain. Information presented in this transparency report, technical or otherwise, is meant to outline general ideas, designs and use-cases and is subject to change with or without notice. For the latest up-to-date technical specifications, check out the updates and documentations on the official website www.defichain.com The graphs, charts and other visual aids are provided for informational purposes only. None of these graphs, charts or visual aids can and of themselves be used to make investment decisions. No representation is made that these will assist any person in making investment decisions and no graph, chart or other visual aid can capture all factors and variables required in making such decisions.

While this transparency report was compiled with the greatest care possible, it cannot be guaranteed that all information is complete or accurate. The information contained in this document may include, or incorporate by reference, forward-looking statements, which would include any statements that are not statements of historical fact. No representations or warranties are made as to the accuracy of such forward-looking statements. Any projections, forecasts and estimates contained in this document are necessarily speculative in nature and are based upon certain assumptions. These forward-looking statements may turn out to be wrong and can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors, most of which are beyond control. It can be expected that some or all of such forward-looking assumptions will not materialize or will vary significantly from actual results. For any questions on a specific subject covered in this document, please contact us on partners@defichain.com



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