- DeFiChain blockchain introduces Fort Canning Road.
- The platform uses the new feature to resolve premium price issues with dTokens.
- It offers a preview into Futures and Options trading, to be launched on DeFiChain soon.
DeFiChain, the acclaimed leading blockchain on the Bitcoin network, has officially activated the much-awaited Fort Canning Road hard fork on its network on Monday, April 11, with a Block Height of 1,785,960.
In detail, Fort Canning Road hard fork denotes the rollout of code upgrades that fix the premium pricing issues of dTokens. Due to the high demand for dTokens, it was trading at a 10-15% premium over the prices of corresponding stocks. Following this, many investors were held back from going long on dTokens.
The Lead Researcher at DeFiChain U-Zyn Chua remarked:
Bringing dTokens closer to their real-world counterparts will make them significantly more attractive for investors and pave the way for the future adoption of DeFiChain. Additionally, the futures contracts offer lucrative arbitrage opportunities for traders.
With Fort Canning Road, dToken prices within a +/- 5% range of the corresponding shares traded in the real world can be maintained using futures contracts. To note, if the dToken price is more than 5% away from the real price, DeFiChain users are at low risk and short-term arbitrage opportunity. This happens, as once in a week, the price of each dToken is brought within the +/- 5% range of the corresponding stock’s price
Additionally, Fort Canning Road also has other upgrades, where DeFiChain’s native stable coin dUSD will be working the same way as the mandatory 50% DFI (native token of DeFiChain) in vaults with a fixed price of $0.99. This bestows users not to provide at least 50% of the collateral in the form of DFI while minting new dTokens. Notably, now users can mint new dTokens by providing dUSD alone as collateral.
Moreover, the new feature of DeFiChain offers a preview of Futures and Options Trading that will be alive on the platform later this year. Rather than artificially burning tokens, and creating risks by filling up with unsecured tokens, DeFiChain applies the strategy of offering futures-like trades.
DeFiChain is a decentralized Proof-of-Stake blockchain created as a hard fork of the Bitcoin network to activate advanced DeFi applications. This blockchain network is dedicated to fast, intelligent, and transparent decentralized financial services, accessible by everyone. It offers liquidity mining, decentralized assets, staking, and decentralized loans.