DeFiChain goes Live with ‘Fort Canning Road’ Hard Fork

DeFiChain goes Live with ‘Fort Canning Road’ Hard Fork

The Much Anticipated 'Fort Canning Road' Hard Fork of the DeFiChain has gone Live bringing decentralized financial applications and services to everyone. The Fort Canning Road hard fork signals the beginning of the release of code modifications that will correct the premium pricing problem that has been plaguing dTokens. The continual strong demand, the dTokens were trading at a premium of 10-15 percent above the prices of similar equities at the time of writing. It discouraged investors from taking a position in dTokens.

dTokens on DeFiChain will now be able to realize their full potential, attracting short-term traders, long-term HODLers, and those who do not have access to conventional brokerage firms to purchase equities.

U-Zyn Chua, Lead Researcher at DeFiChain, said:

“Bringing dTokens closer to their real world counterparts will make them significantly more attractive for investors and pave the way for the future adoption of DeFiChain. Additionally, the futures contracts offer lucrative arbitrage opportunities for traders.”

By measuring and reflecting many different variables and using oracle feeds to record these data feeds, the DeFiChain blockchain creates dTokens, decentralized assets that replicate the price of real-world stock exchanges. Without geographical limitations and trading limits, they let users have price exposure but not ownership of the underlying assets they trade.

As a result of the Fort Canning Road hard fork, dToken values will remain within a +/-5% range of real-world share prices. DeFiChain users have a low-risk, short-term arbitrage opportunity if the price of a dToken is more than 5% away from the true price. dToken prices are brought within +/-5% of the respective stock's price every seven days or every 7*288 blocks.

How DeFi is disrupting traditional banking

Futures and options trading on DeFiChain will be available later this year. DeFiChain uses a futures-like trading technique instead of intentionally burning tokens and risks the system filling up with tokens that are not safe. The Fort Canning Road update's new functionality helps to address the issue of dTokens' premium cost relative to their real-world equivalents.

The native DeFiChain stablecoin dUSD will be handled with a necessary 50% DFI float in vaults, with a set price of $0.99, as part of the Fort Canning Road update. Users will no longer be required to supply at least 50% of the collateral in the form of DFI when minting new dTokens, as a result. They may now create new dTokens by just putting up dUSD as security. The DeFiChain blockchain's native coin is called DFI.

dTokens may be used for various purposes, including holding as an investment, trading on the DeFiChain DEX, or even mining for Liquidity on the DEX. Depositing BTC, DFI, dUSD, USDT, or USDC as collateral in the DeFiChain Vault allows users to mint dTokens on the DeFiChain network. However, owning decentralized assets doesn't have to be done via coin minting. On the DeFiChain DEX, users may now purchase dTokens infractions.

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Image credits: Laura Ockel.