DeFiChain (DFI)

DeFiChain is a Proof of Stake blockchain.

Basics

• Based in:
• Started in / Announced on: 2019
• Testnet release:
• Mainnet release: 12-2019

Audits & Exploits

• Bug bounty program can be found here, up to $50.000.
• Had two audits, in September and October of 2020.

Governance

DAO

• From the whitepaper (as of 13-6-2022):

"It costs 10 DFI to submit a budget proposal and a proposal can be submitted by anyone. This fee is burned and non-refundable regardless of whether the budget is approved. Budgets are proposals which receive a net total of yes votes equal to or greater than 10% of the total possible votes (for example over 448 out of 4480). Budgets can be nullified at any time if vote totals (cast or re-cast) fall below the approval threshold. Budgets are processed (paid) in order of yes minus no votes. More popular budgets get payment priority. Voting happens on a monthly basis but can be changed by a masternode vote.

For governance decisions, only the Foundation may submit proposals. Proposals are voted in similar way as DAO budget proposals except that decisions will be honored via simple majority vote."

Treasury

• From the whitepaper (as of 13-6-2022):

The DeFiChain Foundation will create a community development fund with up to 10% of the block rewards under management.

Token

Launch

• From the whitepaper (as of 13-6-2022):

"For any avoidance of doubt, there will NOT be a public ICO."

Token Allocation

• From the whitepaper (as of 13-6-2022):

"Of the roughly 1.2 billion $DFI coins 49% will be issued to the DeFiChain Foundation at the start. The rest will be issued to Masternode holders over time. Of the 49% initially issued $DFI coins, 49% will be kept by the DeFiChain Foundation. The rest may be distributed to accredited investors, large funds and institutions, collectively known as external partners, to fund the initial development of DeFiChain.

DeFiChain is initially launched with a 200 DFI block reward, of which 10% goes to the community fund. The Foundation pledges to guarantee this 200 DFI block reward for at least 1,050,000 blocks since the the first genesis block, so approximately 1 year.

Subsequently, block rewards will be adjusted through governance vote. The Foundation also further pledges that there will never be more than 1,200,000,000 (1.2 billion) DFI in circulation, unless until the DAO governance votes to change this limit. Therefore DFI is a deflationary utility token."

Utility

• From the whitepaper (as of 13-6-2022):

1. "DFI is used for fee payment for all transactions and smart contracts on DeFiChain.
   • Fee payment for decentralized exchange transactions
   • Fee payment for token transfers
2. Fees payment for DeFi activities:
   • DEX fees
   • XCX fees
   • Lending loan interests payment
   • etc.
3. Collateral for borrowing of other cryptoassets on DeFiChain.
4. 20,000 DFI is required to run a staking node for DeFiChain.
5. 1,000 DFI is required to create a DCT. This is refundable upon destruction of the DCT.
6. 10 DFI is required to submit a Community Fund Proposal. This is non-refundable.
7. 50 DFI for submitting a Vote of Confidence. Also non-refundable. Both are to be paid to the burn address 8defichainBurnAddressXXXXXXXdRQkSm"

Technology

• Whitepaper or docs can be found here.
• Code can be viewed here.

Implementations

• Built on: Itself, and anchoring into Bitcoin
• Programming language used, from the whitepaper (as of 13-6-2022):

"DeFiChain will be written in C++, and the plan is to use other languages, such as Rust, in the future. DeFiChain will be adding opcode support for decentralized financial instruction sets. The DeFi opcode complements and works in tangent with the Script scripting language of the existing Bitcoin Core protocol. The DeFi scripting language is called Recipe, denoting the language’s role in describing and allowing for decentralized financial contracts."

Transaction Details

• Capacity (TPS):
• Latency:

From the whitepaper (as of 13-6-2022):

• Block time: 30 seconds
• Block size: 16 MB

How it works

• DeFiChain is a Proof of Stake blockchain. From the whitepaper (as of 13-6-2022):

"While DeFiChain is choosing PoS over PoW, at the same time, DeFi technology retains the best of the tested and proven technologies that were developed in the Bitcoin Core blockchain. To run a masternode (staking node), stakers must hold a fixed amount of 20,000 DFI. Masternodes on DeFiChain participate in active transaction validations and block creations.

Each staking node can perform only 1 hash per second, with the nonce from Bitcoin Core PoW algorithm replaced by a staker’s masternode ID. To be able to apply a penalty to stakers who double-sign, DeFiChain has to disallow immediate withdrawing of stake. Thus, when a deactivation transaction is confirmed, DeFiChain requires 3000 blocks to pass. At a block time of 30 seconds, 3000 blocks is equivalent to 25 hours. The double-sign penalty is 10 times the block rewards, deducted from the collateral. This also disqualifies the stakers from further staking immediately. The staker who wants to get back to staking has to deposit a fresh stake UTXO of 20,000 DFI.

DeFiChain stakers publish blockchain block hashes periodically to the Bitcoin blockchain, providing public audit and block anchoring of DeFiChain to the strongest, most secure blockchain in the world. Every 60 blocks (approximately 30 minutes), a staker gets the right to write the Merkle root of the previous block onto the Bitcoin blockchain. The information written is, specifically, the txid of the Bitcoin transaction, Bitcoin block header and Merkle proof containing the Merkle root onto the newly mined block. By doing so, the staker will be rewarded an extra block reward in DFI, incentivising nodes to regularly anchor all records to the Bitcoin blockchain."

Fees

• From the whitepaper (as of 13-6-2022):

"Fees from DeFi activities on DeFiChain are burned and redistributed through new token minting over a period of time as laid out below."

Staking

• From the whitepaper (as of 13-6-2022):

"Initially, 1,000,000 DFI allows the owner to own a staking node. Today, the amount has been reduced to 20,000 DFI for ownership of a staking node. The returns for staking will decrease over time, as the volume and number of transactions compensate for the reduction in per-transaction staking rewards.

Nodes are entitled to:

1. Periodic staking rewards as described later in this chapter.
2. Submission of votes to key decisions that govern DeFiChain in the governance system.
3. Submission of votes on how the DFI community budget is being allocated and distributed."

Oracle Method

• Oracle list can be found here. From the whitepaper (as of 13-6-2022):

"A Pricing Contract is a smart contract on DeFiChain allowing multiple trusted and appointed parties to submit periodic price feeds of DATs and DFI. Multiple Pricing Contract oracles are chosen by the DeFi DAO."

Roadmap

• Can be found Insert link here.

Team, Funding and Partners

Team

• Full team can be found [here].
• From the whitepaper (as of 13-6-2022):

"The DeFiChain Foundation is incorporated as a company limited by guarantee, resembling a foundation structure which holds the DeFiChain Trademarks, Domains and makes sure the DFI foundation funds are used as instructed by the masternodes."

(:

Knowledge empowers all and will help us get closer to the decentralized world we all want to live in!

Making these free wiki pages is fun but takes a lot of effort and time.

If you have enjoyed reading, tips are appreciated :) This will help us to keep expanding this archive of information.

ETH tip address: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31