The veteran cryptocurrency investor, Polychain Capital, has joined a financing round at DFX Finance, a new decentralized financial exchange protocol and optimized for non-dollar stablecoins.
DFX raised over $ 5 million in seed funding from Polychain and True Ventures to create a new blockchain-powered marketplace for stablecoins and open DeFi applications to a global audience.. In announcing the news on Wednesday, DFX said other investors included industry players such as Hex Capital, CMS Holdings, Castle Island Ventures and the DeFi Alliance.
DFX is being developed by collaborators of the main cryptocurrency projects and companies such as the Ethereum Foundation and ConsenSys. The platform aims to offer a solution to DeFi users who reside outside the United States and who often have to take the risk of the US dollar when depositing, collateralizing and pooling liquidity.
In this way, DFX to debut liquidity mining with three foreign stablecoins, among which are CADC, based on the Canadian dollar, EURS and XDGD, based on the Singapore dollar. As the platform grows, DFX will add more stablecoins, and plans to allow DFX token holders vote for new currencies that they would like to add to the platform.
In order to allow liquidity mining, DFX is using the leading stablecoin USD Coin (USDC), which is pegged to the dollar. “We leverage USDC at the heart of DFX as all of our non-dollar stablecoins are paired with USDC”, Told him Kevin Zhang, a principal contributor to DFX, to Cointelegraph.
Niraj Pant, partner of Polychain Capital, believes DFX has strong potential to become one of the major players in the DeFi sector:
“By introducing FX into the DeFi space, we believe that DFX will enable dozens of novel applications. Ultimately, we believe that DFX is well positioned to become a critical piece of the DeFi infrastructure.”
At a time when the DeFi sector is gaining momentum, Polychain Capital has been actively investing in various DeFi projects. In early February, the company participated in a $ 1 million funding round for Manta Network to help the company build a fully private decentralized exchange on Polkadot.