Before us is an intriguing cryptocurrency project that allows the decentralized exchange of one fiat currency for another. Trading is conducted 24/7, and settlements are made instantly. DFX Finance calls itself a “leading crypto FX trading protocol”, which sounds rather dubious. Online reviews are more often positive than negative. The company was launched in 2020, and its headquarters are in the UK. Can we trust this protocol with our money, especially knowing that it was hacked in 2022? Let’s find out.
How to Trade
The decentralized cryptocurrency exchange DFX Finance allows traders to exchange stablecoins pegged to non-dollar fiat currencies via a Web3 interface. Users can also add assets to the liquidity pool and earn passive income. Currently, various stablecoins are supported:
- USDC – US Dollar.
- CADC – Canadian Dollar.
- EUROC – Euro.
- EURS – Stasis Euro – Euro-backed stablecoin.
- XSGD – Singaporean Dollar.
- XIDR – Indonesian Rupiah.
- NZDS – New Zealand Dollar Stablecoin.
- TRYB – Turkish Lira.
- GYEN – Japanese Yen.
The main objective of DFX Finance is to provide the ability to trade forex without interruptions, delays, and slippages.
The project is built on the Ethereum blockchain, and all non-dollar stablecoins are denominated in USDC. At the core of DFX Finance is an AMM (automated market maker) which facilitates the decentralized exchange of tokens according to a bonding curve using the ve-economy (voted escrowed model). The exchange rate for each currency is sourced from the Chainlink oracle.
DFX Finance Vital Info
The firm was founded in 2020, with the token launch taking place in 2021. The token is traded on popular decentralized exchanges like Uniswap, as well as on some centralized ones. It supports not only the Ethereum blockchain but also Arbitrum and Polygon.
The domain of the website was indeed registered in 2020, confirming the company’s foundation date. However, DFX Finance does not have legal documents on its website. Instead, they have open-source code on GitHub and multiple social media accounts, all of which were created in 2020. A search on Companies House shows that such an organization was indeed registered in 2020.
Furthermore, DFX Finance underwent audits from “Trail Of Bits”, “Haechi Audit”, and “Sebone”. Despite these precautions, the project lost over $7.5 million in 2022 due to a hack. It’s also known that angel investors and leading funds have invested in the protocol, including names like “Polychain Capital”, “DeFi Alliance”, and others.
Their tokenomics is well-thought-out, and the developers maintain communication with the community. There are votes, forums, and the project is well-discussed. In 2021, I remember, it was a top forex exchanger, on par with others. Now, during the crypto winter, it's clear that it has lost a lot of liquidity and is struggling. But 99% of crypto projects are struggling right now, not just this one.
DFX Finance will soon be shut down completely. They're out of money, and the token price is plummeting. So, withdraw your funds as soon as possible!
The project is good; it supports a proper Web3 interface. You don't need to transfer money somewhere or trust someone; you just connect your wallet and can add liquidity, and buy another currency. In short, DFX Finance is a good dex fx project. If you want to trade forex, I think this is the best option. It's a pity there's no leverage.
I'm farming returns since I provided liquidity. It's a very pleasant and good project that allows earning nice percentages. I've been here from the very beginning. I remember when it launched, the protocol was offering 200%+ APY, but of course, such returns quickly dropped, and now there's a conservative APR. I'm using dfx finance now more for diversification than for targeted farming.
The DFX Finance protocol is certainly interesting, but I wouldn't use it with all my money. I've made a few swaps here, took some Canadian dollars, and took some New Zealand dollars, but only for small amounts. If you operate with huge amounts, there will be liquidity issues, and then you might get "spread out", meaning there will be slippage. Overall, DFX Finance seems to be a working product that has been around for a few years. Yes, there was a hack, but it was minor, and not all users were affected. Still, it raises suspicions afterward. In the end, every user decides for themselves. I still prefer the dollar.
All cryptocurrency is just one big scam, including DFX Finance. The protocol has already been hacked and will be hacked again and again. In fact, there's no need to hack because the DFX Finance token is dropping in value, and people are losing money.
Do you want to get scammed? Fraudsters can steal money, pretending there was a hack. That's what happened in 2022. Do you think some hackers stole the money? No, the developers themselves left a backdoor in the system and stole $7.5 million from users. It happens all the time in crypto. There are many fraudsters and scammers; in cryptocurrency, there's a lot of fake, fraud, and scam.
DFX Finance is an excellent decentralized platform for fx trading. I came here to trade forex as soon as I learned that such an option exists in the form of a DEX. I was tired of custodial services; you can't trust them. But here, it's a smart contract. There are some downsides, but not many. I'd give it 4 stars.
I don't recommend using DFX. Why? Firstly, the protocol was hacked a year ago. Several million dollars were stolen, and users were affected. The vulnerability could have been patched BEFORE THE HACK. Why didn't the developers do it? I don't know. Moreover, the composition of the auditors is very weak, which certainly doesn't provide guarantees. Yet, DFX Finance talks about it as if it's 100% reliable.
Here's what happened during the 2022 hack. They forgot to add "nonReentrant" to the flash loan function, and the Sebone auditors (formerly PickAx) mentioned it on air but didn't spot it in the code. Therefore, these auditors are not good.
So, I advise against using this service. There might be more hacks in the future.
I had money in DFX Finance in November 2022 when the exploit happened. I lost $15k here, and I still regret being such a fool. At that time, those $15k were half of my cryptocurrency capital. I had been building my capital from scratch since the end of 2021 and lost 50% on this stupid and ridiculous project. I was a blatant fool because I kept a large portion of money in one place, in one basket. You shouldn't do that. In general, you shouldn't put more than 5-10% of your capital into one project. Any day, any project can be hacked, and funds can be stolen. I hate the developers of DFX Finance because they had the opportunity to avoid this exploit. They could have revamped their smart contract but didn't because they blatantly ignored it. Because of this, people suffered.
Are you completely out of your mind to use such protocols? At any moment, there could be a depeg, and all your stablecoins could lose their value. You invested $1000 of real money, but you might only be able to withdraw $500 – just like that, a 50% loss. This is utter nonsense! You can't do this! If you're holding money in stablecoins, it should only be USDC or USDT, the most reliable and trustworthy stablecoins! All others are nonsense and rubbish. I don't trust such protocols with my money, and I recommend you avoid them. It's better not to take the risk, I'm telling you the truth. You don't want to lose money in such a foolish way when you can avoid it. Besides, any other currency is weaker than the dollar, that's a fact!