An In-Depth Overview of DeFiXy Protocol, A Feature-Packed Cryptocurrency Platform

7 min readNov 6, 2020

An Introduction to DeFiXy

During 2020, the digital assets market has seen tremendous growth, with billions of dollars being poured into tons of promising decentralized finance (DeFi) projects. Despite this aspect, we are still miles away from mass-adoption, as many crypto-related platforms lack an accessible user interface.

Most projects aim to revolutionize the market, by introducing next-gen solutions to a series of common problems. Even so, many platforms involve a lot of friction, as well as a complicated onboarding process. Complicated user interfaces, on-going checks, eye-straining trading charts, insufficient payment methods, and the lack of fiat getaways are only a few of the problems that today’s projects are dealing with.

This makes newcomers stray away from crypto and blockchain innovation, thereby prolonging the life span of traditional centralized protocols. This is especially the case with digital asset marketplaces, which seem to cater to advanced users exclusively.

We created DeFiXy with the purpose of bridging the gap between fiat-based currencies and the cryptocurrency space. The project aims to do this by providing users with an all-inclusive and user-friendly marketplace for digital assets. By utilizing DeFiXy, customers can access an advantageous P2P exchange, dynamic staking, and a series of innovative DeFi-related services.

As part of this article, readers will get the chance to learn more about DeFiXy’s main services, tokenomics, upcoming token sale, and roadmap.

Exploring the Platform’s Services

Peer-to-Peer Marketplace

Mass adoption is driven by a product’s availability. This rule is also applicable in the case of crypto-based assets. If a digital currency is difficult to purchase or sell due to low liquidity or accessibility, then it’s likely that the asset’s popularity will drop.

Peer-to-peer digital currency exchanges work by providing a cost-effective, quick, and secure alternative to centralized exchanges. We will not discuss the advantages of P2P exchanges over centralized platforms; rather, we will highlight some of the problems that P2P services are currently dealing with.

With this in mind, most of the P2P crypto marketplaces lack support for built-in fiat wallets. Due to this, monetary remittance still relies on independent intermediaries. This adds unnecessary friction, driving customers away. Additionally, most of the current P2P exchanges fail to provide a free market to their customers. This happens since many P2P platforms refuse to support a variety of assets while imposing specific payment methods and supplementary trade requirements.

In hopes of solving these issues and creating a friction-free asset trading experience, DeFiXy has built a dual-layer Amazon-like P2P marketplace.

This service works through the means of two payment layers — one for cryptocurrencies and one for fiat. Consequently, monetary remittance following a trade is done within the same platform. There’s no longer a need to trust intermediaries with your funds, thus aiding security and user anonymity. Moreover, DeFyXy’s P2P marketplace aims to serve as a free market. Customers can effortlessly list and trade verified assets across multiple blockchains and even against fiat currencies.

An interesting implementation of this marketplace is the creation of mini-kiosk. Users who stake assets can create these kiosks, and thereby act as brokers for other traders. This creates a series of innovative use case scenarios. Here’s a relevant example: a next-gen project decides to raise funds through an Initial Coin Offering (ICO). Users worldwide are interested, but due to prohibitive regulations, the token sale is unavailable in a number of countries. An ICO mini-kiosk can then be created on DeFiXy, where brokers can handle the investment on behalf of users who cannot do so themselves.

As DeFiXy matures, we will be able to comply with numerous regional regulatory frameworks. This will grant us extra perks, such as the ability to integrate debit cards within the P2P marketplace. By using these cards, customers will be able to easily deposit and spend crypto-assets, at millions of merchants worldwide.

Since decentralized exchanges are likely the future of crypto-based investments, our P2P service will likely become a market leader, as it fixes several of the fundamental disadvantages associated with established P2P marketplaces.

Dynamic Staking

DeFiXy aims to facilitate lucrative staking opportunities for its users. To do this, the platform has implemented a Proof-of-Commitment (PoC) consensus mechanism. The key idea behind PoC is that stakers who commit their funds for prolonged periods of time can unlock considerable rewards. It is important to keep in mind that PoC is a central part of DeFiXy’s infrastructure, as it lays the groundwork for most of the platform’s features.

The staking protocol is based on two stages — alpha and beta.

The alpha stake implementation will be deployed before the P2P marketplace and DeFi services go live. By leveraging the alpha stake, early supporters of the project can earn fruitful incentives. To put this better into perspective, early stakers will gain access to massive rewards, which will increase from 15% to 45% in up to 21 days.

The beta stake implementation will be based on the alpha stake. It’s meant to act as a generalized and dynamic consensus mechanism that manages reward distribution. The beta stake will be launched alongside the P2P marketplace and the DeFi services. Rewards will be given depending on the period of time that users stake their assets for, whether customers have locked up their funds, and depending on their blend ratio. Regarding the blend ratio, users who hold native tokens will see their reward percentage increase until the maximum yearly limit is reached.

At this point in time, staking is already live. Stakers who have committed their DFX via METAMASK can earn up to 45% in rewards, as presented above.

Based on these aspects, the DeFiXy staking protocol divides participants into three categories: those who hold zero native tokens, those who hold native tokens but have chosen to not lock up their funds, as well as users who own tokens and have locked up their holdings.

DeFi Services

Decentralized finance platforms are actively creating new use cases for digital assets. No traditional financial entity can hope to compete with the advantages provided by blockchain and cryptocurrencies. During 2020, DeFi projects have seen an influx of value, as investors worldwide have recognized their vast potential.

Generally, DeFi projects cater to a consumer need while granting market participants the option to help fulfil that need in a decentralized manner. For instance, in the case of crypto-collateralized loans, customers can secure loans while other users provide the necessary funding. In exchange for the service, debtors pay an interest rate which is then collected by the creditors. This process happens friction-free on decentralized platforms that do not rely on trusted third parties. Due to this architecture, market players can reap considerable benefits.

However, there’s an issue with the current paradigm. While creditors earn an appropriate interest rate on their deposit, debtors usually have to pay higher costs. This creates an imbalance that DeFiXy hopes to address.

As part of the DeFi services implementation, DeFiXy helps ensure that depositors earn an appropriate reward, whereas borrowers don’t spend too much. This is possible thanks to the platform’s dual-rewards system. This protocol adopts a hybrid stake model via which both lenders and borrowers earn two dividends in exchange for their market participation. When a loan is made, a creditor’s ROI grows over time, whereas a debtor’s interest rate decreases. Through this system, the borrowing cost is determined based on the collateral blend ratio of the involved participants.

Overview of the DeFiXy Tokenomics and Upcoming Token Sale

The functionality of the DeFiXy is directly linked to DFX, the platform’s native token.

DFX is a utility ERC-20 token with a total supply of 100 million. To establish its value and avoid inflation, the token will be pre-mined, meaning that no additional tokens can be minted on request.

There are four main factors worth keeping in mind when considering the utility and value proposition of DFX:

It will serve as a mini-market categorization factor, meaning that the size and permitted number of transactions of P2P mini-markets will be correlated to the number of tokens that have been staked or delegated by the owner.
It will facilitate the computation of the collateral blend ratio, meaning that the dynamic interest rate accessed by creditors and debtors will depend on the number of tokens held by each user. More DeFiXy tokens lead to lower interest rates and higher ROIs respectively.
It will be used to cover transaction fees, as the protocol permits payment via the token. Fee discounts are therefore applied whenever DFX is used.
The DFX token will be bought back when the beta-stake allocation nears depletion. Periodic buybacks will be conducted, returning previously-sold tokens to the beta-stake vault.

In an effort to raise funds for the development of this ingenious protocol, we will hold a token sale. The event will take place between the 9th and 30th of November 2020. During this timeframe, a total of 40 million DFX tokens will be up for purchase. 80% of the funds raised via the sale will be allocated towards developing the DeFiXy protocol. The remaining 20% will be dedicated to cover marketing and exchange listing costs. More information about fund allocation is available as part of our official whitepaper.

The token sale will take place on UniSwap and CEX as soon as the tokens are issued. During the sale period, tokens will be purchasable at a price of $0.50 per DFX.

Users who are interested in participating should have their UniSwap and/or CEX accounts ready from the get-go, just in case the demand is higher than initially anticipated.

Project Roadmap

Here’s a brief overview of the projected roadmap for the protocol:

July — September 2020: Testing and launch of the alpha-stake
November 2020: token sale event
September — December 2020: Platform expansion, marketing efforts, and token listing on exchanges
May — December 2020: development of the beta-stake
October — December 2020: implementing and integrating the DeFi services
November — Q1 2021: official launch of the DeFi services
Q1 — Q3 2021: implementing and fully integrating the P2P Amazon-like marketplace
Q1 — Q3: integrating the built-in fiat getaway
Q2 — Q4: beta testing and the official launch of the P2P marketplace
Q4 2021: final developments alongside and full integration of the direct payment protocol

Bottom Line

Based on everything that has been highlighted so far, we aim to foster innovation on the DeFi market, by creating a fully-fledged and beginner-friendly marketplace for cryptocurrency assets. By leveraging our dynamic staking system, early adopters and loyal stakers can reap considerable yields, whereas debtors and creditors can obtain dynamic interest rates that benefit their financial interests.