Cross-chain Mechanism of dFuture
As the public chain market enters a flourishing “multi-chain era”, the market demand for cross-chain transactions becomes greater. A cross-chain bridge is an indispensable part of the blockchain and plays a vital role in connecting assets on various networks and realizing asset circulation. Since the launch of Huobi Eco Chain (hereinafter referred to as Heco chain) and Binance Smart Chain (hereinafter referred to as BSC chain) by dFuture on February 28, 2021, the DFT tokens on the Heco chain has been independent of those on the BSC chain. In order to further realize the interconnection between DFT assets on these two chains and to provide users with an improved and efficient trading experience, dFuture will launch a cross-chain function at the end of October, making it possible to exchange tokens of the Heco chain and BSC chain.
How to realize a cross-chain swap?
Firstly, a user needs to apply to the transfer-out chain for cross-chain signature. The application data include the number of chains involved, address of target chain, etc., and should be submitted to the cross-chain contract of the chain. After successful verification, the rest will be transferred under the cross-chain contract of the chain for locking.
In the process, several validators (also called a notary) will sign to validate the transaction. The cross-chain contract stipulates that the validity of the cross-chain transaction will not be confirmed unless all validators have validated and recognized it.
After the signature, the user can apply to the target chain for withdrawal by using the hash of cross-chain transaction and the validators’ signature information. After the withdrawal application is verified successfully, the cross-chain contract of the target chain will transfer the tokens involved to the wallet of the target address. The whole process takes 3–5 minutes.
Cross-chain advantages of dFuture
l Fast and Efficient
For example, the transfer of DFT from the Heco chain to the BSC chain only takes 3–5 minutes, without waiting for a long time.
l High Security
The DFT involved in cross-chain swaps is stored in an address separately in advance. The address adopts a multi-signature mechanism to prevent the private creation of tokens.
l Multiple Validations
Cross-chain transactions can not be completed unless several notaries sign together and reach a consensus. This verification mode is more secure than a single signature mode because the normal operation of the system will not be affected when one of these notaries is attacked or commits some wicked actions.
l Simple and Intelligible
At present, the main cross-chain mapping in the market is to lock the assets of one chain and mint the same amount of another asset (1:1) on another chain at the same time. It is hard for users to understand this. In contrast, DFT is the only token transferred and output during cross-chain transactions of dFuture. This greatly helps users’ understanding of such transactions.
Distribution of DFT
The total supply of dFuture's platform token DFT is about 400 million, and the specific distribution is as follows:
30.4% of the DFT is allocated to traders who complete valid transactions on the platform;
30.4% of the DFT is allocated to the LP that provides liquidity margin for the platform, and the LP obtains 30% of the LP income according to the proportion of the staked DFT;
15.2% of the DFT is provided to users who provide liquidity for DFT on MDEX and PancakeSwap, that is, LP Token mining;
10% of the DFT is used as a team reward for team operations, technology research, and development, etc., and will be linearly unlocked 24 months after launching six months;
10% of the DFT as an early investor share, to provide more sufficient and beneficial funds and resources for the development of dFuture, and to unlock linearly within 12 months after launching six months;
3%-airdrop In order to further promote the dFuture platform, we will conduct multiple airdrops for traders, members of the Defi community, and other potential user groups. The total amount of DFT currently used for airdrops is estimated to be 3%;
1%-community reward In order to further improve the functions of the platform and reward activists in community activities, we reserve 1% of DFT for rewards for various community activities.
In certain circumstances, ，DFT has five main functions: transaction profit sharing, two-pool mining, repurchase destruction, LP lock-up acceleration, and DAO governance voting rights. The specific functions are as follows:
1）Trading Fees Income： One of the main sources of income for the dFuture platform is trading fees from traders. When the net profit and loss of the fee pool or interest pool increases by 1000 USDT. Platform users can get 40% of the platform trading fees by staking DFT on the platform, the amount of DFT earned is according to the proportion of their own staked DFT to the total DFT staked on the platform, and this part of the fee is paid to users in USDT. The staked DFT can be redeemed after 3 days.
2）Repurchase and destruction：The dFuture platform will use 25% of the total fee income to repurchase and destroy DFT.
3）Transaction discount： After the trader margin the DFT, he can get a discount on the transaction fee. There are currently two levels of margin discounts for traders.
4）LP Lockup Acceleration： At present, 10% of the DFT is allocated to the LPs that provide liquidity for the platform, and the LPs obtain DFT proportional to their staked USDT amount. LPs who staked USDT to the liquidity pool can also lock up DFT to speed up the process of earning DFT. The current ratio between DFT to USDT is set to 1: 2, meaning each DFT locked by LP will increase by 2 USDT staked to the pool. The staked DFT can be redeemed in one day, but the accelerated amount of USDT cannot exceed the current amount of staked USDT*2.
5）DAO Governance Voting Rights： All staked DFT, including DFT staked for trading fees or DFT staked for LP lock-up acceleration, will get corresponding voting rights. The community can vote to modify and adjust all the parameters of the dFuture platform to meet different traders and LP needs. This can include adding a higher risk volatility LP liquidity pool, adding more trading pairs, adding more base trading pairs such as ETH and USDC, adding more price oracles, etc.
Summary
dFuture is a decentralized derivatives exchange created by MIX Labs which is a subsidiary of MIX Group. Based on its unique QCAMM mechanism, it provides an efficient trading experience and better user experience and thus becomes very popular. The launch of a new cross-chain swap function by dFuture this time makes it possible to swap tokens between the Heco chain and BSC chain. We hope that after joint efforts of all dFuture project members and community members, users can enjoy a better experience on dFuture and acquire higher revenues.
