The latest exchange on Polygon
DFYN, a multi-chain exchange currently available on the Polygon network, has experienced a rush of users pushing its volume to new heights in the last 24 hours. The decentralized exchange originally launched at the start of 2021 but has gathered pace more recently amassing almost $140 million in total value locked across its pools and farms.
In the last 24 hours, the number of unique active wallets interacting with the dapps smart contracts has risen sharply by over 128% to 1,490. As a result, transactions are up over 170% to 10,940 which has generated over $8.1 billion in volume. The surge has pushed the relative newcomer to become the 9th most popular DeFi platform on Polygon at the time of writing.
Looking at the price of the native platform token DFYN also shows a clear correlation between the price and dapp activity. DFYN’s price has surged over 115% in the last 24 hours to around $4.20. Although this is still lower than its pre-crash price of around $7.20, like Polygon, DFYN appears to be in a sharp recovery phase.
There are several possible catalysts for the recently observed surges. One is the traditional token airdrop campaign that airdropped 500,000 DFYN tokens to the platform’s early adopters. Another is the arrival of phase 2 of the platforms yield farming opportunities.
The first phase of farming was targeted towards popular pairs like WBTC/ETH, USDT/USDC. And it worked, raising TVL to almost $250 million 6 days after launch. The second phase will continue to have these popular farms with the addition of several opportunities for DFYN token holders. In a Medium blog post, the platform announced three new categories of farming — single asset pools, dual farming pools, and popular & stablecoin pools.
Single-asset pools allow stakers to earn a fixed amount of tokens over a set period. This option is good for farmers who want a simple vault-like solution for their DFYN tokens. Currently, two single-asset pools are available: A DFYN 4-month and 6-month vault. In a nutshell, for every DFYN token staked in the 6-month vault stakers receive 0.4 DFYN tokens and 0.2 for staking in the 4-month vault.
New dual-farming pools will allow users to stake LP tokens and earn rewards in two different tokens. In the ROUTE/DFYN LP pool— members of the DYFN and Router communities will have the option to stake their ROUTE/DFYN LP tokens for a duration of 2 months and earn DFYN and ROUTE tokens as rewards. In the ZEE/DFYN pool users have the option to stake their ZEE/DFYN LP tokens for a duration of 2 months and earn ZEE and DFYN tokens as rewards.
Finally, there are now 11 pools that will allow users to stake their stablecoins, including DAI, USDT, and USDC. As well as other coins like ROUTE, DFYN, Matic, and ETH for a period of 1 month. Liquidity providers will have the choice between delayed vesting of rewards over a period of 6 months or immediate unlock of all the rewards by claiming 50% of their rewards at the end of the staking period. This increasingly popular mechanic offers a sort of ‘cut and run’ feature with the remaining 50% of rewards burnt immediately.
As mentioned, users of the platform can now begin leveraging other community tokens. Namely Router’s native token ROUTE. Router Protocol (ROUTE) aims to build liquidity bridges, and eventually, a liquidity super mesh spanning multiple blockchains, allowing easy cross-chain asset transfers. With a growing Twitter community of over 11,000 people, this collaboration has almost certainly aided DFYN’s recent surge.
Polygon finding traction
Polygon’s growth over the past few months has certainly coincided with the rise of DeFi and a rise in ETH gas costs coupled with favorable market conditions. Those willing to take the leap from L1 to L2 are starting to see significant savings. For example, In its first week, DFYN witnessed 400,000 swaps on its platform. If all this had happened on Uniswap, even assuming a conservative gas fee of $30, the costs paid by users would have been around $12 million.