🚀 DeFiChain Transparency Report Q3 2020
By: Defi Blockchain
Tags: Defi, Blockchain Technology, Blockchain Startup, Blockchain Development, Defichain

Personal Message by the DeFiChain Foundation’s Chairman

Dear DeFiChain community,

looking back on the past quarter it makes me proud to see all the contributions by engineers and the community coming together. The speed we all are moving at is truly mind-blowing, and I think each and everyone of us can feel that, with all the progress that is happening. Let me reflect on four things that stood out for me personally over the past three months:

DeFi sector underperforming: While DeFi was every crypto investor’s darling at the end of Q2 / beginning of Q3 2020, especially in September and October the entire sector crashed by close to 50%:

I believe this was rather surprising to many investors but rather showed that people came to their senses when it came to many worthless tokens that were rather hyped by influencers and VCs. I can highly recommend you read this blog post on some of the shady stuff that is happening in the space: https://medium.com/@crypto_angel/the-corruption-of-defi-in-2020-bbcdadccf201 With that being said I am very glad that DeFiChain goes a completely different route by delivering DeFi on layer 1 and by having a solid and strong use case in DFI. More about that in a bit.

2. DeFiChain staying strong: There is no denying that we also felt the general DeFi setback at DeFiChain with massive hype building in July and August with a slight community slowdown in September. Nevertheless, adoption was insanely strong over the past quarter as you will see in the community and marketing details, and we had no problem keeping up the momentum. A lot of this has to do with our continuous focus on community, which are essential to any good blockchain project.

3. Engineering work outperforming: Team work makes a dream work and on the engineering side the team delivered on all fronts, pumping out 2 DFIPs, running the first hardfork called AMK, integrating tokenization support and improving the DFI app. It all laid the groundwork for the exciting use cases that will be published in the upcoming weeks. This is especially crucial as there seems to be a clear correlation between GitHub activity and a project’s longterm viability. I can confidently say that our team is strongly committed to keep outperforming and to keep delivering massive value.

4. DFI airdrop: I guess the only decision I personally would reconsider in Q3 was to do the free airdrop to all BTC hodlers as we had outlined it in our whitepaper. The sudden spike in additional DFI supply paired with the general DeFi weakness in September led to a slight DFI sell off, which might have been preventable with a slightly different setup. I completely take full responsibility for this decision, which was based on the expectation that people would see such an airdrop a bit more long term oriented. The decision to immediately halt the airdrop and only continue it at a later point was a correct one in my opinion as it protected the existing community and DFI hodlers. Future airdrops will definitely have some lock up periods to avoid repeating a similar scenario. We live to learn.

With that being said, let me focus a bit on the upcoming quarter and what DeFiChain Foundation is expecting to deliver to the community:

DeFi on Layer 1: Through DeFiChain, we are solidifying the DeFi experiments that have been carried out on Ethereum. DeFiChain makes DeFi transactions blockchain-consensus-level transactions on layer 1 rather than layer-2-dApps as they are on Ethereum. This finally makes DeFi a first-class citizen on a blockchain, enabling the most efficient, safest and most user-friendly DeFi applications the world has ever seen. I believe that most crypto users do not yet fully understand what it means when for example Liquidity Mining does not happen on layer 2, but rather on layer 1. On Ethereum this would mean, that you could mine ETH via liquidity and some questionable smart contract token. On Ethereum it will never be possible, but on DeFiChain it will be with the upcoming Bayfront hardfork in November. This will be a complete gamechanger. DFI wallet: We will be continuously improving the DFI wallet with all the DeFi applications DeFiChain needs. In Q4 2020 it will receive mnemonic seeds, direct DEX capability and liquidity mining ability. It will be the most user-friendly DeFi application you will ever use and together with true DeFi on Layer 1 this will create a massive boom in the entire crypto industry. Community: DeFiChain is NOT DeFiChain Foundation. DeFiChain Foundation can NOT make DeFiChain or DFI valuable by itself. Neither myself nor U-Zyn nor anyone else by him- or herself is responsible for DeFiChain’s success. It is all of us. We win or lose together. We are all in the same boat. So, if you want DFI and DeFiChain to succeed, spread the word. Tweet about it. Share it in groups. Talk about it. Apply on various platforms and sites for DFI to get listed. If you are a C++ engineer, consider working with DeFiChain full time. Commit code on GitHub or interact on Social Media. We have seen the very first community development fund applications, and we would like to see more. There is no other way for us to succeed! It takes all of us. So, chip in and help out. Looking beyond: Looking a bit further than just Q4 2020, the key things you can expect in 2021 will be 3 things that will completely revolutionize DeFi:

i. Decentralized Lending in Q1 2021 for non-Ethereum DeFi. This does not exist at all so far.

ii. Decentralized Tokenization in Q2 2021 to represent any asset in a trustless and compliance easy manner on DeFiChain. Investing in stocks or real estate will never be the same again after this.

iii. Interoperability with other DeFi blockchains, so DeFiChain can become the Nr. 1 global DeFi aggregator by Q4 2021 and all you need is DeFiChain to get access to any other DeFi blockchain.

As you can see, our success with DeFiChain so far is just the beginning. I can assure you that with more use cases, more exchanges, more platforms and more users, DeFiChain will gain massive popularity and will change the DeFi landscape. I am very much looking forward to experiencing this with all of you.

Dream. Plan. Execute.

Dr. Julian Hosp

DeFiChain Foundation’s Chairman