Dfyn joined forces with Algorand Foundation and Algorand
DFYN are excited to announce partnership with Algorand Foundation and Algorand, the pure proof-of-stake blockchain focused on the convergence between decentralized and traditional finance, to launch a full Dfyn AMM node on top of the Algorand blockchain. The team behind Dfyn has become the latest recipient of Algorand Foundation’s grant program and will use the funds to integrate Router’s cross-chain bridge into the Dfyn-Algorand node.
To combat the exorbitant gas fees and low throughput that Ethereum has become notorious for, there has been a resurgence in Layer 1 and Layer 2 scaling solutions in the DeFi industry. Despite heavy competition, a very large percentage of those solutions have turned out to be quite successful, providing users with a network that’s cheaper and faster to use without sacrificing any of the functionalities offered by Ethereum.
And although they successfully addressed the problem they set out to solve, Layer 1 and Layer 2 scaling solutions have created another, potentially more serious issue — liquidity fragmentation. With the market flooded with dozens of scaling solutions, all of the liquidity that would have otherwise been pooled into one protocol such as Ethereum has been broken down into smaller pools. This has resulted in numerous liquidity pools scattered around the market, drastically limiting the opportunities users have and reducing the overall security of the networks they’re tied to.
That’s why creating the infrastructure that bridges the gaps between these liquidity pools has become one of the most important efforts in DeFi. Without having a robust cross-chain decentralized exchange (DEX) with ample liquidity and an excellent price discovery mechanism, no Layer 1/Layer 2 scaling solution can succeed in the long term. The failure of one scaling solution will inevitably bring with itself the failure of other solutions, despite the amount of liquidity locked up in them.
Here at Dfyn, they’ve identified the need for advanced infrastructure that would bring together all of these fragmented liquidity pools. That’s why they’ve set their sights on building a set of cross-chain infrastructure primitives that aggregate liquidity across multiple Layer 1 and Layer 2 blockchain networks. What sets them apart from other projects with the same goal is the fact that we have already deployed a fully-working DEX on top of the Polygon Network, previously known as Matic.
The Dfyn Exchange currently has over $120 million in liquidity locked in and recorded a 24-hour trading volume of over $21.2 million through 40,000 average daily transactions.
This is something that has been recognized by the Algorand Foundation, which is why they have generously decided to add Dfyn to their Algorand Grant Program.
The resources provided in the Grant Program will be used to build Dfyn’s AMM node on top of the Algorand blockchain and then integrate Router’s cross-chain bridge to that node. The process will be broken down into smaller steps, with three milestones set to be achieved in the coming months.
The first step will be deploying the Dfyn AMM node on top of the Algorand Testnet in the next few weeks. Once a fully functional Dfyn DEX is established on the testnet, we will deploy the Dfyn AMM smart contracts on the Mainnet.
Building the AMM on Algorand is not a trivial task since Algorand is non-EVM compatible and usual forking wouldn’t cut it. Our team will be writing most AMM contracts from scratch for Dfyn Alogrand node.
The third step will focus on establishing Router’s XCLP on Algorand to provide the infrastructure that enables liquidity migration between Algorand and other blockchains. The project’s final step will involve integrating the Dfyn node atop Algorand to Router’s existing bridge contracts.
“Dfyn are beyond excited to partner with Algorand to bring cross-chain interoperability one step closer to its users,” said Ramani Ramachandran, the CEO of Dfyn. “Enabling the free movement of locked liquidity to and from Algorand is an exciting step not just for us, but for the entire DeFi ecosystem. We believe it will play a significant role in facilitating a new model of finance all of us have been working hard to create.”
About DFyn
Dfyn is a multi-chain AMM DEX currently functional on the Polygon network. Dfyn nodes on various chains act as liquidity entry and exit points into the cross-chain liquidity super mesh that is being enabled by Router Protocol.
About Algorand
Algorand is the world’s first pure proof-of-stake foundational blockchain designed for the future of finance. The technology behind the Algorand blockchain enables a set of high-performing Layer-1 called co-chains to provide security, scalability, complete transaction finality, and built-in privacy to its users. The Algorand Blockchain is overseen by the Algorand Foundation and is focused on interoperability and interacting with other Layer-2 smart contracts.
📰 INFO
