wilfred1005
commented
3 months ago Unlock Defi Blockchain
Closed Graciaho closed 3 months ago
wilfred1005
commented
3 months ago Unlock Defi Blockchain
wilfred1005
commented
3 months ago Exit Zero account protection
DFIP Overview
Describe your proposal
Hello everyone,
I would like to present you an idea for improving DeFiChain, by submitting this DFIP with the goal of making DFC even more attractive. My proposal involves taking funds from the Community Development Fund and transferring them as liquidity to the Quantum Bridge.
Issue: Low liquidity volume on the Quantum Bridge
The Quantum Bridge is a promising element of DeFiChain that enables easy and fast decentralized access to and from the DFC. The BirthdayResearch team has done excellent work from both a technical and user experience perspective, making us proud to have such a bridge on the chain. However, it currently suffers from low liquidity volume. This means it can only be used occasionally and for smaller amounts. While smaller amounts are a win for all of us, what happens when a larger investor or "whale" wants to invest in the DFC decentralized via the bridge? Usually, there is a total volume of between $10,000 and $20,000 available on the bridge. Investing a larger amount in the DFC is virtually impossible, as this can only be done highly fragmented and over an extended period.
Relevance of the Quantum Bridge for DeFiChain
In my opinion, the Quantum Bridge, along with the DFC Meta Chain, is one of the decisive factors and indicators for the success of DeFiChain. It enables easy integration and interoperability with other blockchains, attracting more users and investors. A well-functioning bridge not only increases trust in the DeFiChain ecosystem but also promotes the use of DeFi applications developed on the platform. It also demonstrates Cake's (represented by BirthdayResearch) commitment to the DFC and the high quality of DFC products. Moreover, the Quantum Bridge is currently the only decentralized bridge that allows switching from ERC-20 to DFC. The Binance Smart Bridge (developed by Dr. Cagara) has been failing repeatedly in recent weeks and is currently not usable. Therefore, in my view, it is all the more important that the Quantum Bridge compensates for this outage with sufficient liquidity.
How does this DFIP benefit the DeFiChain community?
Solution approach: Providing additional liquidity on the Bridge
To solve the problem of low liquidity volume at the Quantum Bridge, I suggest taking funds from the CDF and providing them as liquidity. A well-functioning bridge with sufficient liquidity attracts more investors and promotes the growth of DeFiChain.
Specifically, I envision withdrawing $1,000,000 in DFI from the CDF and depositing it evenly on the ERC-20 and DFC sides of the bridge. A possible distribution of the various available coins could be as follows:
40% in BTC / dBTC
30% in ETH / dETH
15% in ERC-20 DFI / DFI
5% in USDT / dUSDT
5% in USDC / dUSDC
5% in EUROC / dEUROC
Details and ownership of the funds
In the discussion thread, questions have been raised about the ownership of the funds, whether/when they will be repaid, and who is responsible for exchanging the DFI into the corresponding ERC-20 tokens. I would like to address these points as follows:
The funds still belong 100% to the DFC and are part of the CDF. They are merely provided to the Quantum Bridge as liquidity free of charge. For this purpose, parts of the funds will be swapped into other tokens, which will also continue to be considered the property of the DFC/CDF. Since the funds can only be moved to the other side of the Bridge and the total number of individual tokens never changes, no funds are lost or paid out to third parties.
If the Masternode owners decide in the future that the outsourced funds should be transferred back to DFI within the CDF, this will be decided through a corresponding DFIP. The transfer back to DFI and into the CDF will be carried out by Cake, provided that the DFIP is approved by the on-chain governance.
The initial allocation to the listed DFC and ERC-20 tokens, as well as the subsequent transfer to the Bridge, will also be executed by Cake.
Final thoughts and next steps
By providing additional liquidity from the CDF for the Quantum Bridge, we can increase the attractiveness of DeFiChain for users and investors and maximize the platform's potential. IMHO this is a great way to increase the utility of our chain, without really risking too much, since the funds still belong to the CDF, only divided into different assets. I would like to hear your feedback on this proposal and would ask you to cast your vote.
Non-obligation
I understand that vote of confidence for DFIP carries no obligations by any developers to implement the proposals. DeFiChain is a community projects. Pull requests can be submitted by community and reserved to be evaluated for safety and general community acceptance.