We are thrilled to announce that we have taken the first step towards the launch of Dfyn V2 by making the RFQ based orders live on Polygon.
Additionally — we are also excited to share Dfyn’s new UI. This new UI has been developed after incorporating feedback from the community and we hope you like this smooth, flowing interface.
The vision of Dfyn is to be a multi-chain robust AMM and give users competitive prices for trading but in the old Uni V2 model, we were facing a lot of challenges like users facing impermanent loss, expensive liquidity rewards, and a significant commoditisation with new competitors all forking the original Uni V2 model. All of these factors necessitated a significant revamp.
Launch of RFQ model on Dfyn
When it comes to DEXes, the biggest users are traders. The more the trading volume, the bigger the DEX becomes. For an efficient trade, traders primarily look for three things: better price for a trade, less slippage, and no risk of front-running.
Steps involved behind the execution of a RFQ based swap :-
1.) User submits the order to the DEX
2.) The DEX checks the price in the AMM and further request quotes from multiple market makers
3.) The best quote is shown to the user
4.) If the user likes the quote — user can accept the quote
5.) User accepts the quote and trade gets executed.
We have integrated with multiple market makers that will give users the quotation for their requests. The user gets the tightest spreads and best prices for highly traded tokens.
Users can execute very large quantities without slippage, as this is similar to an OTC trader. No third party can sandwich the trade between the market maker and the user.
Capital Efficient Model
Traditional AMMs require liquidity providers who need to provide a lot of capital as liquidity. This lack of capital efficiency leads to the higher fee required to incentivise the LPs, which ultimately leads to high token emissions which in further cascades to lower liquidity. RFQ requires no idle capital from market makers hence they can provide better prices in a lower fee environment.
The execution of orders happens on the chain, which ensures the decentralised aspects of security and anonymity of a DEX are also maintained while getting closer to the better prices provided on centralised exchanges.
Also, we have gone through two audits from Zellic and QuillAudits — and their report can be found here.
The new UI and the embedded RFQ model for trades are just the first milestone in the path towards the eventual vision of Dfyn v2. Over the next few months we will be rolling out a host of other features that will significantly enhanced the Dfyn user experience.
Dfyn’s vision is to become a one-stop solution for all trading-related activities. Dfyn is a fully decentralized multi-chain trading exchange that offers cross-chain swaps powered by Router Protocol and has now launched RFQ-based orders for better capital efficiency.
Discord : https://discord.gg/yjM2fUUHvN
Telegram Announcements: https://t.me/dfynofficial