Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
A Guide to dForce – A Chinese DeFi Aggregator in Full Expansion
2.2 k views
dForce Network is China’s ambitious project to take over DeFi by aggregating financial protocols from all over the world. The Beijing-based platform is now stepping out of the shadow of more popular platforms like Compound and Maker to become more than just a crypto-related aggregator.
dForce wants to integrate every blockchain-based application known to man and become the world’s most-used DeFi service.
Before becoming the all-including, interdependent protocol ecosystem, dForce is busy recovering its credibility after an infamous hack attack in early 2020. With more than $86 million locked in value protocols and the plan to build on Binance’s new Smart Chain, things look bright for the network. The question is if dForce has what it takes to go all the way. Let’s find out!
What is dForce?
According to the dForce Network website, this project wants to “reinvent money” and “reinvent finance.” At first, it looks and sounds like every DeFi protocol riding on the overnight success of decentralized finance. However, the platform appears to be much more than that once you take a look under its hood.
dForce Network is an interoperable aggregator platform for DeFi protocols. Its goal is to facilitate the execution of a wide range of decentralized finance operations, including transaction services, community governance, and instant stablecoin swapping.
As part of the new wave of decentralized finance protocols, dForce Network looks to build a powerful presence in the industry and integrate all the DeFi applications in China. In the long-term, the platform aims to become a far-reaching DeFi super-network by assimilating other networks and platforms worldwide.
For now, dForce is growing steadily, thanks mostly to the $1.5 million funding that the project received from the Austin Texas-based crypto venture fund Multicoin Capital in April 2020.
Some of the best features of dForce include:
- Support for staking pools
- A DeFi lending dApp, called Lendf.Me
- A meta-stablecoin in the form of USDx
- A trading platform for instant stablecoin swaps, called dForce Swap
At the time of this writing, dForce Swap supports the following tokens: USDx, HUSD, BUSD, USDT, DAI, USDC, PAX, and TUSD. Peckshield has most recently audited the dForce protocol in May 2020.
A Brief History of dForce Network
dForce was launched in 2019 in China. Its whitepaper was made public simultaneously, but it has gone through several revisions since, with the last one dating from July 2020.
The project is backed by a small team of developers and has very few public figures to represent it in the media. One of them is its co-founder Mindao Yang, who has a staunch belief that “Aggregation as a Service sucks as a value capture, but if it’s an asset protocol, it’s a super sticky supernova.”
Shortly after its release, in January 2020, Compound accused dForce of plagiarizing its codebase. The allegations were proven by the remnants of Compound’s code in dForce’s GitHub codebase. To make amends for getting caught red-handed, dForce added Compound’s attribution on its website and GitHub page.
Despite being less than 2-years old, dForce has seen its reputation tarnished even more by a hack attack in April 2020. Shortly after announcing the funding received from Multicoin Capital, the platform was hit by one or more attackers.
The hackers used imBTC (an ERC-777 “wrapped” version of Bitcoin) to expose the vulnerability of the Lendf.me protocol, which they repeatedly attacked before leaving with more than $25 million worth of Ether (ETH), tokenized Bitcoin, and other tokens.
In the aftermath of the attack, dForce refunded all its users, and the hackers eventually returned the stolen funds. The attackers chose this surprising solution for fear of being exposed after using Uniswap to exchange the hacked tokens for imBTC on the same day of the attack.
Since that incident, dForce did not make the news highlights, but it continues to grow steadily with the emerging DeFi sector.
What is the DF token?
DF is the native utility token of the dForce network. It works on the platform both as a means of incentivization and as a validator for deposits. Additionally, it provides governance powers to its holders.
dForce uses its native DF token to bind together several protocols in terms of assets and liquidity. Token holders can easily engage in financial operations that pass through numerous financial protocols and gain rewards without changing platforms or tokens.
The DF token was built on top of the Ethereum platform and launched in July 2019. A total of 1 billion tokens were minted and distributed as follows:
- 20% for investors, advisors, and early backers
- 20% for the team
- 25% for Gravity Pool
- 10% for Ecosystem
- 25% for the Foundation
At the time of this writing, DF has a market capitalization of $9,404,526. There are over 83,053,500 units in circulation, and one DF token is available for $0.113.
You can find DF available on crypto exchanges like Huobi, MXC, and Coinbene. Because it was built on the Ethereum blockchain, DF is easy to store in ERC-20 compatible crypto wallets like Ledger Nano S and Trezor.
How dForce works?
dForce follows in the footsteps of other DeFi aggregators like Maker and Compound. However, it wants to do things differently by providing a platform that would integrate all blockchain-based DeFi applications and monetary protocols across the board.
To reach its goals, dForce has created a dual-token model. The first step in this direction was the release of USDx, which is the first synthetic indexed USD stablecoin protocol developed by the network.
USDx is an ERC-20 token that is 1:1 pegged to a basket of selected stablecoins. This basket is mostly packed with fiat-pegged tokens that have high levels of transparency and liquidity. dForce binds USDx through smart contracts. Some of the tokens available in the basket include USDC, TUSD, and PAX, and their presence there is adjustable via on-chain governance.
The co-founder of dForce, Mindao Yang, refers to USDx as a unique asset, which ”unlike other synthetic assets that primarily rely on price references without any underlying assets, our synthetic stablecoin is 100% collateralized with constituent stablecoins.”
The other token on the dForce platform, the DF gives users to leverage in transactions and governance and works as part of the incentive mechanism. The developers also want DF to function as a last resort solution for the entire dForce ecosystem. If, at one point, USDx would require recapitalization, the network would mint enough DF tokens to cover it.
Yield farming is a straightforward solution for making a profit from asset storage. However, dForce developers believe that many people can’t get their heads around it. So, the network aims to make it even easier by letting the DF protocol do the work for them.
Here is where dForce departs from the Compound model on which it based its code. On Compound, users exchange their assets for COMP, which they later sell. On the dForce network, crypto holders do not have to engage in transactions. Instead, the protocol uses an internal buffer pool to exchange the tokens back into the original stablecoin yield.
Users can deposit USDx or USDT and, in return, get dUSDx or dUSDT, respectively. Next, the protocol can stake these tokens in any pool on the network to generate yield.
This dual-token system enables dForce to avoid running a regulated, centralized stablecoin platform. If the regulators took out one coin from their basket, they would replace it with another fiat-pegged asset.
The benefits of using dForce include access to a diverse offer of digital assets and increased protection for users through a multilayer system of risk buffers.
The Bottom Line – A Guide to dForce
dForce plans to outrun and possibly outlive Compound and Maker in the future. While that day seems way past the horizon line at the moment, the Beijing-based network is making decisive steps towards it.
By pooling yields across the DeFi money-lego stacks, dForce provides users with unlimited access to the yield power of all the DeFi protocols out there. They get to swap, deposit, and exchange all types of tokens, including the governance ones. The only condition for having this great power is never to leave the network.
It all looks great on paper. However, dForce still has to prove its resistance to hack attacks in the long run. The recent security audit from Peckshield is a good start to build on in the coming months.
Btc
Bitcoin
$62.547
price
price
0.84959%
price change
The dForce Network has huge potential, and only time will tell if it can reinvent finance, money and offer borderless access to financial tools.
Previous
Balancer: An Overview of the ETH-based DeFi System
Next
Bitcoiners are the True Liberation of America, Says Kanye West
Written by
Iulian Lesanu
@Iulian
565 posts
More author posts
WMA: Bitcoin Clings onto $62,000 Amid Extreme Market Volatility
Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
8 months ago
WMA: Bitcoin Tumbles to $62,000 as the Market Takes a Dip
Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin is down by over 5% to trade at around $62,300. Ethereum decreased by almost 9% to trade at around $2,400. XRP is down by 15%, Solana by 8%, and Dogecoin by 13%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value…
8 months ago
Dypius Launches 3 New and Exciting Mini-Games with Direct Rewards on Base
Dypius delighted the gaming community by introducing three captivating new mini-games: Stone Crack, Kitty Dash, and CAWS Adventure. The games spur from the successful use of Base's secure Layer-2 technology and promise smooth, low-cost, decentralized gameplay. Players can already dive into the new Dypius games and compete in dedicated leaderboards and in-game rewards distributed directly on Base. Boasting cutting-edge graphics and engaging gameplay, these games deliver an accessible and rewarding gaming experience for all kinds of players. Stone Crack, Kitty Dash,…
8 months ago
WMA: Bitcoin Soars to $66,000 as the Market Sees Green All-Around
Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,31 trillion. Bitcoin is up by over 5% to trade at around $65,700. Ethereum increased by almost 4% to trade at around $2,660. XRP is up 11%, Solana 10%, and Shiba Inu 36%. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector increased the total value of protocols…
8 months ago
World of Dypians Reaches New Prestige Level by Making Binance’s Latest Industry Report
World of Dypians (WOD) - a unique, groundbreaking MMORPG, has been featured in the latest Binance report, “Navigating Crypto: Industry Map." Binance is renowned for its in-depth reports showcasing some of the industry's most promising projects. Featuring Binance's overview of the crypto ecosystem is a momentous event for WOD, a game that has been building through innovation and creativity to deliver unmatched gaming experiences since day one. Binance’s The Industry Map looks at multiple subcategories of the crypto industry, such…
8 months ago
WMA: Bitcoin Surges to $62K as the Market Prepares for Altcoin Season
Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,19 trillion. Bitcoin is up by over 4% to trade at around $62,700. Ethereum increased by almost 76% to trade at around $2,570. XRP is up by 1%, Solana by 6%, and Shiba Inu by 4%. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector has grown significantly,…
9 months ago
Publish your own article
Guest post article. Guaranteed publishing with just a few clicks
START PUBLISHING ADVERTISE WITH USBrowse categories
Explore trending topics in the crypto community right now.
Bitcoin
SEC Greenlights Multiple Bitcoin ETFs, Signaling Major Leap for Cryptocurrency Markets
The U.S. Securities and Exchange Commission (SEC) has made a landmark decision by approving 11 spot bitcoin exchange-traded funds (ETFs). This move represents a significant moment in the cryptocurrency industry, marking a shift towards greater institutional adoption and accessibility for investors. The approved ETFs include products from major firms such as BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETP Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, Invesco Galaxy Bitcoin…
Marius Bogdan Dinu 
@bdinu89
@bdinu89
1 year ago 
595 views
Bitcoin Should be Banned in the United States: Charlie Munger
Berkshire Hathaway’s vice chairman, Charlie Munger, called for a ban on cryptocurrency in the United States on Monday, similar to the one in China. In an op-ed published with the Wall Street Journal, Munger argued that Bitcoin isn’t a currency, commodity, or security, but simply a form of gambling “ with a nearly 100% edge for the house. As such, the enactment of a federal law should ban such things from happening. Munger cited the Chinese communist party’s ban on…
2 years ago 1.5 k views
Tesla’s BTC Positions Remained Unchanged in Q4 of 2022
According to a new earning report from automotive manufacturer Tesla, the company did not sell any of its BTC holdings in the fourth quarter of 2022. Amid speculations that the company had traded BTC during the testing bears, CEO Elon Musk revealed it was yet holding on to its BTC stash. Tesla Maintains Holdings After Initial Sell-Off In Q2 of 2022, Tesla opted to sell 75% of all its BTC. The car manufacturer received close to $950M in exchange. Notably,…
2 years ago 1.5 k views
Here’s When Grayscale Debates the SEC in Court on its Bitcoin Spot ETF
The District of Columbia Court of Appeals has marked a date for when Grayscale and the Securities and Exchange Commission (SEC) may present oral arguments regarding the approval of a Bitcoin spot ETF. Each side will present its case at 9:30 am ET on March 7, with the SEC arguing against the product, and Grayscale arguing in favor. Grayscale VS SEC The court date – revealed in a court order filed on Monday according to CNBC – is much earlier…
2 years ago 1.8 k views
Ethereum
Ethereum’s Zhejiang Staking Withdrawal Testnet for Shanghai is Live
At 15:00 UTC on Wednesday, the much-anticipated Zhejiang testnet for staking withdrawal went live on Ethereum’s Beacon chain. Zhejiang will enable the testing of the Ethereum Improvement Proposal (EIP) 4895 which allows for staking withdrawals. This is in preparation for the network’s next major update, the Shanghai hard fork slated to launch sometime in March. Users Can Make Simulated Withdrawals with Zhejiang In a tweet yesterday, DevOps engineer at Ethereum foundation Barnabas Busa gave details about the Zhejiang testnet slated…
2 years ago 1.6 k views
Ethereum Devs Disagree Over Technical Tweak as Shanghai Upgrade Nears
Post-merge Ethereum users have been eagerly awaiting the commencement of the network’s next major upgrade, Shanghai. However, after over 3 months of prep time, it appears the Shanghai rollout isn’t going as smoothly as expected. What Exactly is the Shanghai Upgrade? In September last year, the much-publicized Ethereum Merge also known as the Ethereum 2.0 upgrade went live. Ethereum underwent some significant changes as its consensus mechanism transitioned from proof-of-work to a cost-efficient proof-of-stake system. However, since the Beacon launch…
2 years ago 1.6 k views
FTX Hacker Converts 50k Stolen ETH to BTC
Per a report from blockchain analysis firm Chainalysis, the attacker behind the Nov 11 FTX exploit, is converting the stolen ETH to Bitcoin. There were muted fears the seemingly inexperienced perpetrator could dump all its ETH holdings. On Sunday, the attacker dumped 50k ETH on-chain, with ETH's price dipping by almost 7%. https://twitter.com/chainalysis/status/1594349583416840199?s=20&t=pgvQHeVytI20eKQ1ls9bxw Hacker Moves 50,000 ETH to New Address Over the past week, the perpetrator had been steadily swapping the cryptocurrencies they had carted off for Ether tokens. This…
3 years ago 1.9 k views
Censorship Concerns: 51% of Ethereum Blocks Now OFAC Compliant
According to new data, over half of the blocks on the Ethereum network now reportedly comply with the US Treasury OFAC’s standards. This comes roughly a month after the platform’s monumental merge update. Phasing Out Tornado Cash The Office of Foreign Assets Control is the intelligence and enforcement agency of the US Treasury Department. Indeed, the OFAC administers and enforces US financial sanctions. A prime example of this is the recent, highly-publicized ban on crypto mixer Tornado Cash. According to…
3 years ago 1.8 k views
Trading
How to Leverage Arbitrage Opportunities in Crypto Markets
Cryptocurrency arbitrage has become an increasingly popular investment strategy as the crypto market grows and evolves. Arbitrage involves taking advantage of pricing discrepancies between markets or exchanges to profit. Investors can leverage profit opportunities by understanding cryptocurrency arbitrage while managing associated risks. In this guide, we'll explore cryptocurrency arbitrage and how it works. A Bitcoin-related example will help us illustrate the concepts of this strategy. What is Arbitrage and How Does it Work in Crypto Markets Crypto arbitrage trading is…
2 years ago 3 k views
The Different Types of Copy Trading in Crypto
Are you interested in trading cryptocurrencies but feel intimidated by the complexity of the process? Copy trading is a great way to get into crypto without needing to be an experienced trader. With copy trading, investors can benefit from the experience and knowledge of more experienced traders, allowing even beginners to succeed. How does copy trading work, and which tips do you need to know to succeed? In this article, we'll explore all aspects of copy trading in crypto. What…
2 years ago 1.7 k views
How to Spot an Unsafe Crypto Exchange
Cryptocurrency exchanges have become increasingly popular as they provide a platform for people to buy and sell digital assets. Unfortunately, not all crypto exchanges are safe or reliable. With the rise of cybercrime and fraud, you must learn to spot an unsafe crypto exchange before investing your money. This guide will help beginners identify and avoid potential risks when selecting a cryptocurrency exchange. The Role of Crypto Exchanges on the Digital Assets Market Cryptocurrency exchanges play a crucial role in…
2 years ago 2.2 k views
What Is Grid Trading in Crypto?
Crypto grid trading has become a popular strategy because of its ability to help traders capitalize on market volatility. Grid trading means you can produce consistent profits by taking advantage of price differences in different markets or time frames. By establishing buy and sell orders at predetermined intervals, you can take advantage of these fluctuations in an automated way. This guide will explore the different aspects of grid trading and provide an overview of its benefits, challenges, and more. Through…
2 years ago 1.6 k views
Tech
Introducing una Messenger: A Paradigm Shift in Blockchain Connectivity
The digital landscape is set for an unprecedented transformation with the introduction of una Messenger, the latest innovation from web3 development powerhouse Wemade. This platform represents an evolution of the "PAPYRUS Messenger," serving as the cornerstone of the ambitious "unagi" initiative, aimed at catalyzing the mass adoption of blockchain technology. The "Unbound Networking & Accelerating Growth Initiative" seeks to bridge the divides between diverse blockchain services and networks, heralding a new era of interconnectedness. A New Frontier in Blockchain Communication…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 573 views
Bit2Me Champions WEMIX Token in Pioneering European Listing
Bit2Me, Spain's premier virtual asset exchange, has recently broadened the horizons for cryptocurrency enthusiasts by listing WEMIX, the cornerstone token of the WEMIX3.0 blockchain ecosystem. This marks a notable achievement as WEMIX's inaugural venture into the European market, emphasizing the token's role in facilitating a range of blockchain-based activities, from gaming transactions to decentralized finance (DeFi) applications. Launched with the intention to democratize access to WEMIX for the 450 million Spanish speakers around the globe, this strategic move aligns with…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 403 views
CryptoVirally Expands with Fresh Crypto Marketing Offers and Cointelegraph Upgrades
In an exciting update for the cryptocurrency marketing landscape, CryptoVirally has announced a series of new entries and enhancements to its already comprehensive range of services. These updates, aimed at providing tailored marketing solutions for crypto projects, include new limited-time offers and expanded options for Cointelegraph publications. Limited Offers: A Game-Changer in Crypto Marketing CryptoVirally's limited offers section presents an enticing opportunity for crypto projects to leverage high-impact marketing services at discounted rates. These offers, available for a limited period,…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 464 views
Breaking Boundaries in Blockchain: WEMIX’s ‘una Wallet’ Sets New Standard for Multi-Chain Asset Management
The WEMIX Foundation has unveiled 'una Wallet,' a revolutionary digital wallet designed to offer unparalleled convenience and security in managing digital assets across various blockchain networks. The announcement, made on January 17, 2024, signifies a new era in the seamless integration of multiple blockchain protocols, including Arbitrum, Avalanche, BNB Smart Chain, Ethereum, Kroma, Optimism, Polygon, and WEMIX3.0. 'una Wallet' is more than just a digital wallet; it represents the culmination of WEMIX's innovative efforts in the blockchain space. It serves…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 592 views