March 1, 2021— Today, we are delighted to announce the launch of version 1 (V1) of dForce’s Multicurrency Asset & Lending Protocol, a pool-based lending protocol with built-in multicurrency stable debt (MSD to be unveiled in V2). The roll-out of dForce Lending will be the final piece of the puzzle to complete the dForce Network — protocol matrices covering asset, trading, and lending — creating network effects that help users optimize for maximum liquidity efficiency for their DeFi needs.
In an effort to ensure the highest level of security and stability, V1 of dForce Lending is going to be a conditional offering with tightened risk control over assets (borrow cap and supply cap) and all fundamental features of decentralized lending protocol (global liquidity pool, over-collateralized loan, and dynamic interest rates).
The most innovative and critical feature, Multicurrency Stable Debt (MSD), where users can mint stablecoins of different currencies against their crypto collaterals to serves as an effective hedge against foreign exchange risk, is going to be unveiled in V2 (expected launch in April 2021) alongside a flashloan feature.
More features including Public-Private Pool (PPP), Fix-Term/Fix-Rate Borrowing, Unsecured Loans, and Credit-Line Sharing will be progressively released in future upgrades in the second quarter of this year.
Under dForce’s Risk Assessment Framework, adding new assets or collaterals need to be carried out through on-chain voting by DF token holders. The first batch of assets supported by dForce Lending has been approved through governance proposal DIP005:
Meanwhile, dForce Yield Markets will add new handler and strategy support for dForce Lending (Reference: DIP006) to connect the liquidity pool.
In an ambitious attempt to automate core financial services in an open, permission-less, and decentralized manner and unlock opportunities for universal financial inclusionthrough access to DeFi, we are building a highly interoperable and seamlessly integrated DeFi infrastructure, with security, transparency and trust always at our core.
We have simultaneously entered into conversations with a number of renowned financial institutions to carry out innovative experiments including tokenizing cashflow based assets, automating asset-backed loans, opening the door for more decentralized derivative initiatives.
dForce community is at the core of reimagining money and reinventing finance.
Security Audit and DeFi Insurance
Security is at the top of our priorities, and we are taking extensive measures to ensure risk management is implemented on multiple levels. dForce Lending already completed its security audit and formal verification by CertiK and Certora. In addition, we have also entered into engagements with two of the world’s top 5 audit firms for smart contract review of V2 of dForce Lending.
Moreover, we are in talks with multiple DeFi insurance companies including Nexus Mutual, Cover and Soteria to provide smart contract coverage for our users.
dForce advocates for building an integrated and interoperable open finance and monetary protocol matrix, including lending protocol (dForce Lending), asset protocols (dToken, USDx, GOLDx), and liquidity protocol (dForce Trade).
Users’ feedback is always appreciated. If you have any suggestions or questions about any of the dForce protocols, please feel free to contract us on Forum, Twitter, and Telegram. You can also see frequent updates about dForce through our social media channels. Every opinion will be reviewed carefully.