DeFiChain, the world’s leading blockchain on the Bitcoin network dedicated to bringing decentralized financial applications and services to everyone, has officially activated the much-anticipated Fort Canning Road hard fork on its network at 4:36 AM CEST on Monday, April 11th on Block Height 1,785,960.
Fort Canning Road’s hard fork signifies the introduction of code upgrades to address the premium pricing issue with dTokens. Due to a high demand, dTokens trade at a 15-20% premium over comparable stocks. This prevented investors from taking a long position on dTokens.
U-Zyn Chua, Lead Researcher at DeFiChain, commented, “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.”
The DeFiChain blockchain mintes dTokens, which are decentralized assets that replicate real-world stock prices. They track and reflect a variety of variables and use oracles for those feeds. They provide price exposure to the underlying assets, but not ownership.
Fort Canning Road’s hard fork provides futures contracts that keep dToken prices within the +/-5% range of the shares traded in real world. DeFiChain users have a low-risk, short term arbitrage opportunity if the dToken price is more than 5% off the real price. It’s because once a week, i.e. every 7*288 blocks, the price of each dToken is brought within the +/- 5% range of the corresponding stock’s price.
It offers a sneak peek into the Futures & Options trading that will arrive on DeFiChain later this year. DeFiChain uses a strategy that offers futures-like trading, instead of burning tokens and putting the system at risk. Fort Canning Road’s update does not address the problem of premium pricing for dTokens relative to their counterparts in reality.
Another major upgrade arriving with the Fort Canning Road is that DeFiChain’s native stablecoin dUSD will be treated the same way as the mandatory 50% DFI in vaults with a fixed price of $0.99. Users no longer have to provide minimum 50% collateral in DFI form while minting new DTokens. Users can now mint new DTokens with only dUSD as collateral. DFI is the native token for the DeFiChain Blockchain.
A dToken is a cryptocurrency that can be used to either invest, trade on the DeFiChain DEX or for Liquidity Mining. You can mine dTokens via the DeFiChain blockchain. Users can deposit BTC, DFI or USDT as collateral to the DeFiChainVault. However, minting is not the only method to acquire decentralized assets. Users can also buy dTokens – even in fractional pieces – on the DeFiChain DEX.
DeFiChain (or Proof-of-Stake) is a blockchain decentralized by DeFiChain. It was created to allow advanced DeFi apps. It provides fast, transparent, intelligent and transparent decentralized financial services. DeFiChain provides liquidity mining, staking and decentralized assets. The DeFiChain Foundation’s mission is to bring DeFi to the Bitcoin ecosystem