Multi-chain DeFi exchange Dfyn raises $2.4 million ahead of Polkastarter IDO
Multichain decentralized exchange (DEX) Dfyn has successfully closed a $2.4 million funding round from investors ahead of its Polkastarter initial DEX offering (IDO), as per a release shared with CryptoSlate.
Investors include top crypto funds like CMS Holdings, QCP Capital, DFG, DeFi Capital, Signum, Rarestone, Shima, De-Fi Capital, Genblock Capital, GBIC, Lotus Pool, Krypital, MGNR, Crypto Dorm Fund, and Sandeep Nailwal of Polygon among others. Dfyn plans to use the investments to focus on expanding Dfyn onto other blockchains and to further develop the cross-chain ecosystem with Router Protocol, which the team is also building out.
The DFYN token received investor interest of nearly $30 million and was 12x oversubscribed. And now, with the core group of investor partners, the protocol can commit to product development and marketing processes for years.
What is Dfyn?
Dfyn offers a low-fee automated market maker (AMMs) exchange along with yield farming opportunities for users. It runs over Ethereum with the scalability of ‘layer-2’ platforms. The protocol would also offer social tokens and non-fungible tokens (NFTs) and plans to launch on the Polygon network initially.
AMMs, for the uninitiated, are smart contract-based DEXs that allow users to trade cryptocurrencies in a wholly permissionless manner via the use of decentralized liquidity pools (as opposed to the traditional market where buyers or sellers could be centralized).
Most AMMs run on a certain blockchain and allow users to trade cryptocurrencies and tokens related to that particular blockchain. This means an Ethereum-based DEX can only facilitate the trading of Ethereum and other ERC20 assets (and not tokens issued on Tron, Solana, or Binance Smart Chain).
Dfyn solves just that. Whenever a user requests a trade on the platform, its ‘nodes’ search different blockchains to fill the order at the lowest slippage possible. This means, for example, that a user wishes to trade ETH/USDT via Dfyn using the Ethereum network, the protocol would try and find a better trade on a different blockchain (say, Solana) and execute the order.
As such, the nodes themselves use Router Protocol’s cross-chain bridges to allow information- and value-transfer between different Dfyn nodes. For the uninitiated, Router Protocol is building a liquidity super mesh connecting multiple cross chains; currently, the testnet supports Ethereum, Polygon, BSC, HECO, and Avalanche, and soon Algorand, Solana and Terra will be added as well.
The nodes are spread across multiple Layer 1 and Layer 2 blockchains and allow Dfyn to act as a multi-chain DEX, meaning users can conduct their on-chain, permissionless trades seamlessly across several blockchains from a single interface.
Multi-chain platforms are a hot commodity in crypto circles (who’s to blame when gas fees on Ethereum reach $100) among retail audiences, so it is unsurprising to see strong demand from investors for Dfyn.
But you aren’t late for the party. Dfyn is scheduled to raise $305,000 on Polkastarter—a crowdfunding platform based on Polkadot—via an IDO on May 10.
Roughly 700 slots are reserved for the POLS community and 300 slots are reserved for the Dfyn NON-POLS community. Only whitelisted addresses will be able to participate. The whitelist, which has now ended, saw an overwhelming response where over 70,000 people applied for 1000 whitelisting spots.
Disclaimer: CryptoSlate holds a financial position in Dfyn. CryptoSlate was given the opportunity to participate in the private sale of Dfyn in exchange for news and other types of coverage. CryptoSlate was not paid for this article.
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