Decentralized Club Ama with DFYN.
The session was divided into three segments. Introductions were made in Segment 1, questions from the Twitter community were answered in Segment 2, and live questions from the community members in attendance were answered in Segment 3.
If you missed this event and would like to know what DFYN is all about, you can find a recap of the interview here. Information here should be researched and should not be taken as investment or financial advice. Also note that slight edits have been made for clarity, and links in this recap lead to images, documents, or other media.
I’m Auria, your host for this AMA session.
For today’s AMA session, we have invited Lakshika Kothari from DFYN to help us learn more about this awesome project.
Let us all give a warm virtual welcome to our guest , Lakshika @lkothari 👏👏
Thanks for having me
Really excited to present Dfyn to such a vibrant community
It’s pleasure to have you here with us.
Before we dive into the project, we will love to know about your role and day to day work experience in project
I work in the Business Side of Dfyn. I look at Product, growth at Dfyn
Thanks for introducing yourself ☺️
as you already know, this AMA will have 3 segments.
And in the last (3rd) live segment , I will unmute the chat to allow questions from our dear Community!
So let’s start our AMA with basic introduction segment.
Here’s the first one for you
Q.1 Can you give a brief overview of Dfyn V2 — What all features it entails?
With Dfyn V 2.0, we aim to be a one-stop solution for resolving every trading need that a stakeholder of DeFi can have. With this second iteration, we are ushering in financial products inside a multi-chain architecture that will fundamentally reshape users’ expectations from Decentralized Exchanges.
As part of our current roadmap, we are offering the following capabilities:
1. RFQ Styled Orders i.e., Request for Quote Styled Orders powered by our hRFQ engine (High-frequency Request for Quote)
Dfyn will provide RFQ-styled orders where the user for every swap performs an RFQ quotation request, and a market maker will immediately offer a quotation for the swap — the user will then get the option to accept or reject the offer.
This will help us provide better prices, with zero slippage, inside a secure capital-efficient ecosystem.
Currently, RFQ-based orders are live on Polygon, with Avalanche and BSC to follow.
2. Isolated Liquidity Pools for Market Makers:
With this offering, users can create isolated pools where funds can be stored in custody and assign delegated signers from one of our Market makers. This will enable Market makers to trade with these user funds for a fee.
Users with additional capital will now have an opportunity to get a return. Moreover, it will allow market makers to earn a part of the profits without deploying their capital — a win-win situation for everyone involved.
3. Concentrated Liquidity with Unified Pools
Dfyn is also coming with AMM based on concentrated liquidity. By leveraging the power of focused liquidity pools and RFQ orders, we will give users a superior trading experience.
There are different models of concentrated liquidity. One is creating different pools for different tiers, and the other is having one pool but a dynamic fee based on market conditions. In Dfyn, we are going with one pool model with a variable fee structure to avoid liquidity Fragmentation and overcome the impermanent loss.
4. Dfyn Signal
We are also introducing Dfyn Signal, a multi-chain compatible smart trade-finding engine capable of finding the most optimal trade for the user by comparing quotes across different token paths across various protocols like Dfyn V1, V2, Dfyn’s hRFQ engine and external DEXes.
5. And finally, we have On Chain Limit Orders.
Q.2 What are your objectives for launching V2?
Dfyn was the first AMM on Polygon and became one of the largest DEXes by volume soon after. However, we noticed that our architecture displayed some obvious limitations over time. With the bear market, we got the opportunity to go back to the drawing board and isolate the areas that needed improvement.
We found that the Uniswap V2 model adopted by Dfyn 1.0 was causing multiple challenges to scale operations economically with a seamless user experience. These challenges included:
Expensive Liquidity Mining: A high TVL guarantees less slippage in large orders. However, users will always park their liquidity where they will get more rewards. Hence, we had to shell out more rewards to attract large amounts of liquidity.
Competitive Landscape: As the market matured, more DEXes with a concentrated liquidity model came into the mix, making it increasingly difficult for us to offer competitive prices.
When we started resolving these pain points, we found an opportunity to go beyond just a workable solution and revamp the entire architecture to become a one-stop solution for all financial needs.
Q.3 How does the project differ from its competitors in the market?
Right now, most competing DEXs operate on centralized limit orders or off-chain limit orders. The limitations of centralized limit orders are simply the risk of centralization and manipulation of the ecosystem.
If the central entity storing limit orders goes down, the price may touch the trigger point, but the limit order might not get executed. Also, this is more prone to hacks. Moreover, Bad faith actors might pay to get order flow from these centralized entities. They can manipulate the order book and front-run the trades. Many exchanges have their internal market-making arm or are engaged in selling the order-book flow to HFTs.
Up until now, our competitors were solving the problem of Centralised Limit Orders Book Exchange by off-chain limit orders. In this framework, orders are placed either on or off the exchange but the trigger to execute the trades occurs off the exchange. As price inches closer to the target price of limit order on exchange, attempts are made by external entities to place the trade at that price.
But the reality is that even though it’s called a limit order, it actually resembles ‘Market Orders’, because trade at the limit price is not executed via an automated mechanism of the exchange but through an external interjection.
With Dfyn V 2.0, we are introducing On chain limit orders. It is an innovation that we’re most excited about. It solves the problem of centralization and also of off-chain limit orders making Dfyn V 2.0 a clear choice over its competitors.
a minute for the community to digest
a minute for the community to digest
Q.4 Can you tell us more about on-chain limit orders feature that you’re launching in V2?
Dfyn has introduced Limit Order Ticks to achieve an on-chain limit order, which allows for highly concentrated liquidity on individual ticks, resulting in enhanced price precision. In this context, ticks can be thought of as nothing more than an index. Each tick (index) will correspond to a specific price and liquidity. This enables users to add liquidity at a precise price, similar to how order book exchanges operate.
Q.5 Can you discuss any incentives or rewards for community members and ecosystem participants?
Yes I’d love to. So the fact is that we can come up with the best technical solution of all time but it’ll be completely useless if no one uses it. So in order to boost adoption, we’re coming up with an incentivized testnet with rewards upwards of 1M $DFYN tokens.
One can read more in detail here:
Q.6 Can you share more about the Incentivised Testnet and how a user can participate?
Yes absolutely. First of all this campaign will be live from 16th Jan 10:30 AM UTC to 28th Jan 10:30 AM UTC. And in this campaign we have gamified almost every form of engagement with Dfyn V2 testnet. Whenever you successfully complete a task, you will be awarded some points.
As the difficulty of the tasks increases, so does the number of points accrued to your name. For example if you swap any pair of tokens you’ll get 10 points. But if you place a limit order, you’ll get 20 points.
You can find the detailed point breakdown and rules of participation on our Medium blogsite. But the two steps users will have to follow to enter this contest is join the guild and access our incentivized testnet. The links to both of these destinations are available on our blog and twitter handles
Q.7 How easy is the interface going to be for DFYN V2? Is it going to be as easy as using a CEX?
Ensuring seamless usability has been one of our prime focus areas with Dfyn V 2.0. And while the architecture on the backend is fairly complex, the user interface of Dfyn V 2.0 continues to remain extremely intuitive with one touch solutions for most key offerings. Keeping these factors in mind, I guess we can say that Dfyn V 2.0 will be as easy to use as a CEX.
Q.8 How is the project’s native token used within the ecosystem and what are its potential use cases?
Its token will be used primarily for two things:
1. Boost Liquidity
2. Supercharge community
Q.9 According to you, What will be the effect on DFYN token after the launch of incentivised testnet and Mainnet launch of Dfyn V2.
We are hopping that more users will hold the token
Moving on to our last question of this segment
Q.10 When is the Mainnet coming?
Before 10th Feb
Thanks for that well detailed introduction about DFYN
Here’s the first interesting question from twitter
Q.1 What are the advantages of Layer 2 assets? I don’t see you mention about privacy and security on website, how does the DFYN ability to prevent attacks?What is your strongest advantage that you think will make your team leading the market? In contrast, what is your weakness? How do you plan to overcome it?
We believe in security a lot. Here are couple of things that we do:
1. We run Bug bounty Programs
2. We are fully audited and we will publish those results
3. We have in-house security team
4. Most importantly, our team has been building products in web3 from half a decade.
Q.2 I want to know that how the Super Liquidity Network will work? Will you fundamentally pool liquidity via Dfyn nodes on different blockchains in essence aggregate liquidity per DEX and use route as message and chain exchange tool?
Yes, exactly like that
Infact we will be aggregating external DEXs as well to give user the best price
Q.3 Would yoh mind to tell us What is the difference between ROUTER and DFYN? We know that the two of them are related.
The router seems to provide a cross-chain infrastructure with Dfyn as a DEX solution, but I would like to know how the tokenomics of each will be differentiated.
You are right on product from.
Both products have different tokens
so the tokenomics of one doesn’t depend on the other
Q.5 How can we participate on your Incentivized Testnet platform? Do you consider community feedbacks ? And what about audit plan of your projects?
Here is the link on paticipation
IMPORTANT LINK :
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