It is now possible to get into multiple projects of the Interchain in a simple way
Traditional Finance (TradFi) has created over the last decades many strategies that are each best suited for different types of profiles: institutions, corporations, individual investors…
Stock picking and index investing are two opposite strategies.
– The first consists in choosing some stocks that are more promising (based on research) and can beat the market.
– The second focuses on diversifying the investment into a group of different assets.
Most retail investors are better off with the second strategy.
In Traditional Finance, indexes are used extensively to simplify the exposure to multiple assets.
In a similar way, DFract encompasses the value of multiple assets, but more importantly, also generates staking rewards that are automatically compounded.
Providing a DeFi solution that is comparable to a traditional index is important to make crypto more accessible to the next billion users.
DFract aims to make crypto as accessible and simple as possible.
It allows its users to be exposed to a basket of tokens that represents the Interchain.
DFract, the first Protocol Owned Liquidity on the Interchain
The DFract Protocol is a yield earning index for the Interchain, a collection of sovereign blockchain networks communicating through the Inter-Blockchain Communication protocol (IBC).
DFract is a Protocol Owned Liquidity (POL):
All the assets provided by the users belong to the Protocol and the holders of the Protocol’s $DFR tokens.
This is different from many experiments in DeFi that were ultimately doomed by the debt they created. Moreover, decentralized governance enables fair participation for every stakeholder.
$DFR, the DFract token
$DFR is the Protocol’s native crypto-asset.
Under the hood, the index is a weighted basket of assets such as $ATOM, $OSMO, $JUNO etc… from the Internet of Blockchains.
The DFract Protocol aims to turn the $DFR token into a unit of value for the Interchain projects.
This token is a convenient way, with a low entry barrier, for its users to gain broader exposure to the Interchain.
On top of the broad interchain exposure, staking $DFR also gives users access to the rewards generated by the Protocol.
What users get:
- A simple and unified experience
- The knowledge of a community for an optimized return
- A large amount of time saved on research, delegations and transaction processing
- A token that yields a return in a passive way
- A token that remains liquid on the secondary market with a value backed by its underlying assets
The DeFi index to make the Interchain more accessible to new users
With more than 250 Appchains built with the Interchain Stack and billions in assets growing at the speed of light, the Interchain is one of the most promising ecosystems in the world.
The multichain paradigm provides many benefits in terms of scale and sovereignty at the expense of simplicity and composability.
The growing complexity is a hurdle to crypto mass adoption that DFract wants to solve within the Interchain.
The thesis for building this product is three-fold:
- Tremendous value can be captured on the Cosmos-SDK based network of Appchains over the next decade
- Elegant and simple user experience for any kind of user is a key success factor for crypto adoption
- Community-centric projects will be more successful in the long run
By connecting the dots, DFract was born to solve the current pain point experienced by a non-crypto user, or by a sophisticated crypto user looking for simplicity, that would like to get exposed and support the ecosystem growth while being rewarded for it.
At the same time, the Protocol aims to have a positive impact for the community — the builders, the investors, the media professionals — that has been pushing the ecosystem so far.
The DFract protocol growth is on
The DFract protocol launched successfully for Cosmoverse in Medellín!
We feel grateful to all the people we connected with, supported us and took time to listen to our project. After the presentation held by our CEO and Founder Sarah-Diane Eck at Cosmoverse, the very first round of $DFR was minted on October 10th and the protocol stats went live.
Powered by the Lum Network and key partners
Using decentralized technologies to shed light on the value created by mainstream users is at the heart of Lum Network’s Mass Adoption vision.
Lum means “Lumière” in French, aka light.
Following our idea, the name DFract comes from the diffraction of light. A physical phenomenon that splits a single beam of light into many color components.
In the same spirit, DFract is composed of many tokens that are encapsulated into a single token.
For beta version, Lum Network is partnering with a renowned professional validator that has already proven itself in the past, and who is also present in the Lum Network validator set.
To begin, the best projects of the Interchain on which Imperator operates its own validation node will be selected.
DFract is also a member of the Interchain Builders Program
Find the original article here – https://medium.com/lum-network/dfract-the-first-interchain-yield-earning-index-42d7a4f2f008