dForce offers a variety of features, including lending, borrowing, trading, and staking, all of which are designed to be interoperable with other DeFi protocols. The platform is built on Ethereum and leverages the security and transparency of blockchain technology to provide users with a decentralized and trustless financial ecosystem.

One of the unique aspects of dForce is its focus on integrating with other DeFi protocols. This means that users can access a wide range of financial services and products in one place, without having to navigate different platforms and protocols. dForce also has a decentralize governance system, where users can vote on proposals and changes to the protocol, ensuring that the platform is controlled by its users and not a central authority.

How Does dForce Work

dForce is a decentralized finance (DeFi) protocol that aims to provide users with a wide range of financial services and products on the blockchain. The platform offers a variety of features, including lending, borrowing, trading, and staking.

Here’s how dForce works:

1. Lending and borrowing
   dForce allows users to lend and borrow cryptocurrencies. Users can deposit their assets into a pool and earn interest on their holdings. The interest rate determines by the supply and demand of the asset, with higher demand leading to higher interest rates. Borrowers can take out loans from the pool by depositing collateral in the form of cryptocurrencies.
2. Trading
   dForce enables users to trade cryptocurrencies on its decentralized exchange (DEX). The DEX is built on the Ethereum blockchain and allows users to trade directly with each other without the need for an intermediary.
3. Staking
   Users can also stake their cryptocurrencies on dForce to earn rewards. Staking involves locking up tokens in a smart contract for a set period, which helps secure the network and maintain its integrity.
4. Integration
   dForce design is interoperable with other DeFi protocols, allowing users to access a wide range of financial services and products in one place. The platform is open standards, making it easy for developers to build on top of the protocol.
5. Governance
   dForce has a decentralized governance system, where users can vote on proposals and changes to the protocol. This ensures that the platform controls by its users and not a central authority.

Overall, dForce aims to provide a comprehensive DeFi ecosystem. This is where users can access a range of financial services and products on the blockchain.

Product of dForce Network

dForce offers several products and services to its users in the decentralized finance (DeFi) space. Here are some of the main products of dForce:

1. Lending
   dForce offers lending services, allowing users to deposit their cryptocurrency assets in pools and earn interest on their holdings. The dForce’s lending protocol is Lendf.Me, which supports several different cryptocurrencies such as Ethereum, USDT, and others.
2. Trading
   dForce has a decentralized exchange (DEX) that allows users to trade cryptocurrencies with each other directly without the need for an intermediary. The DEX is dForce Swap and it supports various tokens and trading pairs.
3. Yield farming
   It is a process in which users lock up their cryptocurrency assets in a smart contract to earn rewards. Additionally, dForce offers yield farming services. It also allows users to stake their tokens and earn rewards in the form of additional tokens or fees from the protocol.
4. Staking
   dForce allows users to stake their tokens, which involves locking them up in a smart contract to help secure the network and maintain its integrity. Staking also allows users to earn rewards for their contributions to the network.
5. Governance
   dForce has a decentralized governance system where users can vote on proposals and changes to the protocol. This ensures that the platform controls by its users and not a central authority.

Therefore, dForce offers a comprehensive suite of DeFi products and services that allow users to manage their digital assets, earn interest, trade, and participate in the governance of the protocol.

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After the transition, dForce will not allocate resources to supporting any forks of Ethereum. The dForce will only support the core POS Ethereum chain. Additionally, dForce believes that most members of the DeFi ecosystem will also focus on Ethereum’s mainnet.Have already seen announcements from major infrastructure providers indicating such. For example, dForce uses Chainlink oracles to provide accurate data feeds necessary for maintaining liquidity pools and liquidation frameworks.

Reference: DIP028 — Proposal for Committing to Ethereum POS Network

“The Chainlink protocol and its services will remain operational on the Ethereum blockchain during and after the Merge to the PoS consensus layer. Users should be aware that forked versions of the Ethereum blockchain, including PoW forks, will not be supported by the Chainlink protocol. This is alignS with both the Ethereum Foundation’s and broader Ethereum community’s decision, achieved via social consensus, to upgrade the Ethereum blockchain to PoS consensus.”—dForce

For dForce users, the team expects that everything should continue uninterrupted through the merge. There are several possible scenarios for what could happen in a post-merge. Forked ETH world, but they believe none presents a viable economic strategy that would result in long-term success. Moreover, without oracle support or stablecoin liquidity/support on a forked chain. Any forked protocols, including dForce, will not function as designed.

Additionally, dForce likes to point out that it cannot speak about the potential actions of other ecosystem players and actors using dForce. Users should take caution when utilizing any decentralized protocols.

ABOUT dForce

dForce is an integrated and interoperable platform for opening finance protocols, covering lending, assets, and trading.

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The updated dForce Trade version 1 (V1) aims to create a better trading experience by aggregating liquidity across different DEXes. Using different market depths within the same protocol.

Furthermore, users can instantly swap ANY token for ANY token supports by DEXes. The dForce Trade will split the order amongst different platforms. Using an API containing an efficient routing algorithm, which finds the best possible paths in the shortest possible time.

In the to-be-launched dForce Trade version 2 (V2), dForce aim to develop it into a cross-chain liquidity aggregation protocol. Facilitate a seamless flow of liquidity across different blockchains, which will further power a thriving multi-chain ecosystem for dForce.

Users are able to edit slippage percentage and gas fees to adjust the processing time for the transaction. Users do not get charges any fees to swap tokens through dForce Trade. The goal of dForce Trade is to help users find the most cost-efficient way to exchange all the cryptocurrency assets supported for trading.

What is dForce Trade?

dForce Trade is a DEX aggregator utilizing an algorithm to search for the best trading price and aggregate proper liquidity across multiple platforms to deliver an optimized trade.

dForce’s protocol scrapes many decentralized exchanges to find the cheapest platform, accounting for fees and the price of the asset itself. It then splits a swap deal between several decentralized exchanges, achieving an overall better price than a swap on any single exchange. A DEX aggregator’s main task is to offer users better swap rates than any specific DEX can offer and do that in the shortest possible time. Other major tasks are protecting users from price impact and reducing the probability of failed transactions.

dForce Trade now deploys across Ethereum mainnet, BSC, Arbitrum, and Optimism.

ABOUT dForce

dForce is an integrated and interoperable platform for opening finance protocols, covering lending, assets, and trading.

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dForce provides a complete set of DeFi protocols covering assets, lending, and trading across multiple blockchains. It includes Ethereum, BSC, Arbitrum, Optimism, Polygon, Avalanche, KAVA, Evmos (coming soon), etc. Same as Frax, dForce was invested by Multicoin Capital, as well as CMBI and Huobi Capital.

Furthermore, dForce has already supported the lending and borrowing of $FRAX on dForce Lending (audited by Trail of Bits, ConsenSys Diligence, CertiK, and Certora) on multiple blockchains. The soon-to-be-launched dForce Trade is also going to support the trading of $FRAX by aggregating liquidity across different DEXes with the most favorable price.

In addition, USX is a USD soft-pegged stablecoin launched by dForce. It has a total circulating supply of $141m across Ethereum, Arbitrum, Polygon, Avalanche, Optimism, BSC, Evmos, and KAVA.

dForce has recently launched a FRAXBP-USX pool on Saddle Finance.

Moreover, understand that Frax has deployed a significant amount of POL to power FRAX paired pools on Saddle Finance and has become a crucial holder of veSDL. They’d like to seek support from the Frax community to vote for FRAXBP-USX in order to get SDL emission toward it. Vote through Snapshot.

USX INTRODUCTION

Minting & Redeeming

• Pool-based model: users can mint USX against multiple types of collateral assets through lending protocols integrated with USX. In addition, a range-bound interest rate policy will be implemented to ensure the most competitive rates for borrowers.
• Vault-based model: further expand the collateral type of USX to a broader range of collateral assets including LP tokens, yield tokens, etc. Additionally, each collateral asset will be housed in an isolated pool with customized risk parameters and fixed interest rates.
• Liquid stability reserve (LSR): users can mint/redeem USX against/for supported stablecoins at a 1:1 exchange rate and zero swap fee. Moreover, each collateral asset carries a minting cap to back the issuance of USX. In addition, LSR is currently supported on BSC, Polygon, and Optimism.

Price Stability

USX is designed to maintain a 1:1 soft peg with the U.S. dollar. Its pegging mechanism dictates by the hybrid interest rate policy, as well as the liquid stability reserve module.

• Range-bound interest rate: USX implements a dynamic supply mechanism powered by the liquidity module. When the market demand for USX is high, more USX liquidity will be supplied to lending protocols to ensure the borrowing rate stays competitive, and vice versa.
• Fixed interest rate: in the event of a depeg, DF holders can collectively adjust the interest rate for Vaults through governance to help USX stay on the price target
• Liquid stability reserve: zero slippage and zero fees will unlock a significant source of price stability driven by market arbitrage. Users can buy USX when the price is below $1 and sell USX when the price is above $1 to make a profit.

Liquidity Modules (similar to Frax’s AMO)

• PDLP: PDLP is short for Protocol-Direct-Liquidity-Provision designs to combat USX’s liquidity shortage in secondary venues. It allows the protocol to use USX’s deposit certificates from supported lending protocols, cross-chain bridges, and stable swaps as collateral to mint USX and supply the liquidity directly to satisfy the market demand.
• POO: POO (Protocol-Owned Operator) is an improve version of PCV (Protocol-Controlled-Value). It also leverages treasury assets to mint USX, and exchange them for the relevant pairs asset, or pair them with the relevant assets, gradually acquiring and controlling most of USX’s liquidity in the open market.

Multichain Implementation

USX mint natively on all chains implementing cross-chain liquidity capability. Allowing users to move USX across supported chains with zero slippage. Minimizing liquidity cap (only subject to USX’s liquidity on the destination chain).

Decentralization

USX 100% decentralizes DF holders governing the protocol. Including but not limited to parameter setting, liquidity operation, onboarding of new collaterals, new feature implementation, etc.

Security

Moreover, the USX protocol has undergone extensive code reviews and security audits by Trail of Bits, ConsenSys Diligence, CertiK, and Certora (formal verification). With a bug bounty launched through Immunefi.

Benefits for Frax Community

• LP of FRAXBP-USX can earn SDL emission on Saddle.
• USX empowers by liquidity modules and will seed liquidity to ensure market depth and capture a significant portion of USX trading, generating trading fees for LPs.
• Both dForce and Frax multi-chain protocols implements on Ethereum, Arbitrum, Polygon, Avalanche, Optimism, as well as BSC, and Evmos. Making it easier to expand its lending support to FRAX on different blockchains. In addition, both communities will benefit from more exposure through a fitting and long-term partnership.

ABOUT dForce

dForce is a set of decentralize finance protocols. It covers assets, lending, and trading, serving as DeFi infrastructure in Web3.

ABOUT Frax Finance

Frax is the inventor of the fractional stablecoin & 1st crypto native CPI (Frax Price Index) FPI. Additionally, FRAX is the only stablecoin with parts backed & parts algorithmic FXS.

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ABOUT Saddle Finance

Saddle Finance is an AMM for swapping low-slippage pegged assets like tokenized BTC stablecoins. 

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USX’s full collateralization will remain intact. It is designed to help USX maintain its dollar peg in a more efficient manner.

All stablecoins collected from LSR will be deposited into lending protocols (with dForce Lending as a start) to earn yield, unlocking a new revenue stream for dForce Treasury. This feature aims to further enhance the flexibility and capital efficiency of USX, i.e., via POO and PDLP which power USX’s liquidity in the secondary market.

LSR will support different assets on different blockchains

• On BSC, BUSD, USDC, and DAI will be supported.
• On Optimism and Polygon, USDC and DAI will be supported.

How to use LSR on dForce?

1. Please navigate to the dForce app and make sure you are connected to BSC, Polygon, or Optimism (more networks will be supported soon), and click on ‘Mint’ from the menu to continue.
2. Choose the stable asset you’d like to mint USX against (vice versa) from the drag-down list.
3. Enter the number of stable assets and you will be able to receive USX at a 1:1 rate. For first-time users, please click on ‘Approve’ and confirm the transaction from your wallet.
4. Click on ‘Swap’ and confirm the transaction from your wallet.
5. Congratulations! Now you should be able to see newly minted USX in your wallet.
6.  As a reminder, minting or redeeming USX will be subject to pool liquidity which can be viewed on the same page (same as Curve pool). In the event of a liquidity shortage, you can still buy or sell USX on supported DEXes.

 Here are two links readers to look at to further read up on LSR

• DIP027 — Proposal to Launch the LSR (Liquid Stability Reserve) Module for USX
• Proposal to Introduce Liquid Stability Reserve to USX

dForce core developer team is constantly trying to improve its protocols.

ABOUT dForce

dForce is a complete set of decentralized finance protocols covering assets, lending, and trading, serving as DeFi infrastructure in Web3.

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Part of the rewards from MATIC will be used to buy back DF tokens from the secondary market to be distributed as rewards.

Furthermore, 15k DF will be distributed on each Polygon and Optimism per day. Translating to a total of 30k DF rewards added to the current ongoing liquidity mining initiatives!

dForce advocates for building a complete set of DeFi protocols covering assets, lending, trading, and serving as DeFi infrastructure in Web 3. The protocol is currently deployed on Ethereum, Arbitrum, Optimism, Polygon, and Binance Smart Chain (BSC).

Moreover, the dForce Token (DF) is the governance token across the network. It also gives DF holders complete control over decisions concerning dForce protocols. It includes onboarding of new assets and collaterals, changes to risk parameters, as well as fee accrual, interest alignments, etc.

Prior to the launch of DF Staking, only native DF tokens were used to facilitate governance votes via Snapshot. 

• DF – native DF token
• iDF – deposit certificate for DF supplying to dForce Lending
• sDF – staking certificate for participating in Free Staking
• veDF – staking representation for DF participated in Lock-up Staking

DF stakers can unstake at any time. However, the Free Staking will feature a lower yield and fewer voting rights than Lock-up Staking.

Furthermore, participants in Free Staking will receive an sDF token. It is a standard ERC20 token. It is also supported by and composed of other DeFi protocols. For example, lending protocols can support sDF as collateral so that sDF holders can earn lending interest on top of staking yield for enhanced capital efficiency.

ABOUT dForce Network
dForce is a complete set of DeFi protocols. It covers assets, lending, and trading, serving as DeFi infrastructure in Web3.

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RESOURCES
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