Mhairi
March 3, 2022, 11:25am
1
DFX is a decentralized exchange protocol with a dynamically tuned bonding curve optimized for fiat-backed stablecoins like USDC , CADC , EURS , and XSGD .
The DFX token is the governance token of the DFX exchange. This UMIP will add DFX to the supported collateral currencies on the global whitelist contract, allowing the usage of the DFX token as collateral currency. This serves as an important step to allow for the creation of KPI options for DFX.
## Headers
| UMIP-104 | |
| ------------------- | ------------------------------------------------------------- |
| UMIP Title | Add DFX as a supported collateral type |
| Authors | Adrian Li (adrian@dfx.finance), Michael Bogan (michael.bogan@gmail.com) |
| Status | Approved |
| Created | 05/27/2021 |
| Discourse Link | https://discourse.uma.xyz/t/add-dfx-as-approved-collateral-currency/1144 |
## Summary (2-5 sentences)
[DFX](https://dfx.finance/) is a decentralized exchange protocol with a dynamically tuned bonding curve optimized for fiat-backed stablecoins like [USDC](https://www.circle.com/en/usdc), [CADC](https://www.getcadc.com/), [EURS](https://eurs.stasis.net/), and [XSGD](https://xfers.com/sg/straitsx#XSGDsection).
The DFX token is the governance token of the DFX exchange. This UMIP will add [DFX ](https://etherscan.io/token/0x888888435fde8e7d4c54cab67f206e4199454c60) to the supported collateral currencies on the global whitelist contract, allowing the usage of the DFX token as collateral currency. This serves as an important step to allow for the creation of KPI options for DFX.
## Motivation
DFX is an AMM with a bonding curve that continually shifts to allow for the most efficient trades. This means you can get extremely close to spot prices while taking advantage of Ethereum's quick settlement finality. The DFX team and community are interested in implementing KPI options for the DFX community. Specifically, KPIs related to TVL.
The DFX token is a governance token that will be used to decide on fees, tweak bonding curve parameters for different pools (i.e. EUR pool might be more flat and lower fees whereas a NGN pool will be less flat and the fees higher), decide on new stablecoin additions, determine rewards for different pools, etc.
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