General Information

All Telegram links

Here you can find an overview of all Telegram channels of the DeFiChain community.

Main channels

Masternode operator

Topic-specific channels

You know other Telegram channels? Then feel free to contact us with a short email or in our Telegram group.

General Information

Deposit and withdrawal options

Buy DFI – Where do you buy your DFI?

In the DeFiChain ecosystem, there are now very many ways to buy DFI and DeFiChain-based tokens. We are currently aware of the following platforms:

  • Exchanges for cryptocurrencies – Bittrex & KuCoin
    The most popular way to buy cryptocurrencies remains buying on a central cryptocurrency exchange. However, in order to use DFI, there must be at least one transaction to Cake or your own wallet.
  • DeFi Platform – CakeDeFi
    The simplest way to get into DeFiChain is to buy DFI, Bitcoin, or Ethereum through a DeFi platform like CakeDeFi and then use the platform’s services for staking, liquidity mining, and lending.
  • FIAT On-ramp – DFX.Swiss
    The most anonymous way to buy DFI is through the FIAT on-ramp from DFX.Swiss. After a one-time configuration you can easily buy DFI via SEPA transfer and get the DFI directly to your destination address – no matter if one-time transfer or standing order.
  • DeFiChain Decentralized Exchange (DEX)
    Already own Bitcoin, Ethereum, Litecoin or USDC and want to exchange them for DFI? Then use CakeDeFi to convert your cryptocurrencies into tokens on the DeFiChain and then exchange them for DFI on DEX – in the process, you’ll also get to know the full potential of the DeFiChain right away!

Buy & Sell DFI – The ultimate overview (by DFX.Swiss)

Created by DFX.Swiss

Comparison of the individual providers


User Experience

Fair Pricing

Coins / Token

Fees - Buy

Fees - Sell


DeFiChain DEX


0 - 1,99%

nicht möglich


DeFiChain DEX

DFI, dBTC, dETH, dLTC, ...

0,5 - 0,7%
(in future
2,7 - 3,2%)

2,7 - 3,2%


Partly illiquid


0,75% + Transaction fees

0,75% + Transaction fees


Partly illiquid


0,2% + Transaction fees

0,2% + Transaction fees

General Information

Liquidation – Everything half as bad

When are Vaults liquidated?

For each Vault on the DeFiChain, the owner of the Vaults has chosen a so-called Loan Scheme. This defines the necessary collateralization ratio, which has to be fulfilled at least, as well as the annual interest rate to be paid for the Vault. The following two loan schemes are available, for example, in addition to other models:

  • Minimum collateralization ratio: 150
    Interest rate: 5% annual interest
  • Minimum collateralization ratio: 200
    Interest rate: 2% annual interest

The minimum collateralization ratio means that a minimum amount of collateral in the form of cryptoassets must be available in the Vault during an active loan. The amount of collateral must be higher than the loan amount by at least the factor of the minimum collateralization ratio. If the collateral is worth less at any point in time (=> less than loan amount x min. collateralization ratio), the Vault will be liquidated.


– Loan amount: 1 dTSLA (incl. accumulated interest)
– Collateral: 500 DFI
– Loan model: 150% minimum collateral ration

Three scenarios:

  1. Scenario – Initial situation
    dTSLA oracle price: 1.000 USD
    DFI oracle price: 4 USD
    Total value of loan: 1 dTSLA x 1,000 USD/dTSLA = 1,000 USD
    Total collateral value: 500 DFI x 4 USD/DFI = 2,000 USD
    Current collateral ratio: 2,000 USD / 1,000 USD = 200%

    Result: All is well – collateral ratio (200%) is above the minimum collateral ratio (150%)

  1. Scenario – DFI price falls
    dTSLA oracle price: 1.000 USD
    DFI oracle price: 2.98 USD
    Total loan value 1 dTSLA x 1.000 USD/dTSLA = 1.000 USD
    Total collateral value: 500 DFI x 2.98 USD/DFI = 1.490 USD
    Current collateral ratio: 1.490 USD / 1.000 USD = 149%

    Result: Vault is liquidated – collateral ratio (149%) is below the minimum collateral ratio (150%)

  1. Scenario – dTSLA price increases
    dTSLA oracle price: 1.700 USD
    DFI oracle price: 4 USD
    Total loan value: 1 dTSLA x 1.700 USD/dTSLA = 1.700 USD
    Total collateral value: 500 DFI x 4 USD/DFI = 2.000 USD
    Current collateral ratio: 2.000 USD / 1.700 USD = 118%

    Result: Vault is liquidated – Collateral ratio (118%) is below the minimum collateral ratio (150%)

What exactly happens during liquidation?

If a vault is liquidated due to insufficient collateral, then the auction process of the vault’s collateral begins. One or more auctions are started for this purpose. The split of the auctions follows the following two rules:

  1. If multiple dTokens have been taken as loans, a separate auction (also called “batches”) is created for each dToken with the proportional amount of collateral.
  2. If a Vault has collateral in excess of $10,000, it will be split into multiple individual auctions (also called “batches”) so that no single auction has a value greater than $10,000.

A minimum bid is set for all auctions, based on the disbursed loan amount plus a liquidation penalty (5%). All bids must be made in the dToken in which the loan was disbursed.


– Loan amoun: 100 dTSLA (inkl. angesammelter Zinsen)
– Collateral: 1.500 DFI
– Minimum bid: 100 dTSLA + 5% liquidation penalty = 105 dTSLA

In our example, if a higher bid is placed than the minimum bid, all tokens above the minimum bid of 105 dTSLA will be issued to the owner/creator’s Vault at the end of the auction.

– Last bid: 125 dTSLA
– Payout to Vault owner: 125 dTSLA – 105 dTSLA (minimum bid) = 20 dTSLA

The remaining amount, which is not paid out to the Vault owner as residual value (i.e. the minimum bid – here 105 dTSLA), is exchanged back via DEX into DFI via DUSD and then burned.

Auction process:

  1. A Vault no longer has sufficient collateral and is liquidated.
  2. All collateral is split into one or more auction(s) – as described above.
  3. For each auction a minimum price of (loan + interest) x (1 + 5% liquidation penalty) is set.
  4. Now each auction is available for 720 blocks (about 6 hours).
  5. Everyone can bid and must either meet the minimum bid or place a bid which is at least 1% higher than the last bid.
  6. At the end of the auction, the amounts will be distributed as follows:
    1. All securities of the vault go to the highest bidder.
    2. The loan amount + the liquidation penalty (5%) will be exchanged for DFI and burned.
    3. The remaining amount, which exceeds the minimum bid, goes to the Vault owner (the amount remains in the Vault).
  7. The liquidation of the Vault is finished and the Vault owner can use the Vault again for new loans or just cash out the remaining amount (here dTSLA).

If no one bids on the Vault within the auction, the auction will restart after 720 blocks.

What can you do as the owner of the Vault?

As a Vault owner, you can limit your damage very much by acting cleverly. For example, the owner can bid at the auction of his Vault himself and make an excessive bid, which itself exceeds the value of the collateral. If the owner does this, he has only transaction costs except for the 5% liquidation penalty as well as possibly increased costs due to unbalanced DEX prices. Because by the auction of the vault the owner & highest bidder gets all collateral paid out and also the amount of his bid minus the loan amount (which he already owns anyway) and the 5% liquidation penalty.


– Loan amount: 1 dTSLA (incl. accumulated interests)
– Collateral: 300 DFI
– Minimum bid: 1 dTSLA + 5% liquidation penalty = 1,05 dTSLA

– Bid of the owner: 5 dTSLA

– Collateral paid out to the highest bidder (owner): 300 DFI
– Balance paid to the owner: 5 dTSLA – 1,05 dTSLA = 3,95 dTSLA
– Loan amount already in the owner’s possession: 1 dTSLA

Owner’s assets before liquidation:
– 300 DFI
– 5 dTSLA

Owner’s assets after liquidation:
– 300 DFI
– 1 dTSLA + 3,95 dTSLA = 4,95 dTSLA

Therefore, the loss to the Vault owner is only 0.05 dTSLA, which is the 5% liquidation penalty on the loan amount of 1 dTSLA.

In a real liquidation, there are transaction costs and possibly other costs (e.g. due to unbalanced DEX prices).

How can I participate in an auction?

It should be possible to participate in auctions via all wallets in the future. However, this is not yet the case today (as of 09.12.2021) and therefore we briefly present here the previous options that allow participation:

  1. DeFiChain Wallets – Download here
    1. On the command line in the desktop wallet or defi-cli (Windows & Mac OS)
    2. In the mobile wallet as a beta tester the function is also already available (iOS & Android)
      To do this, go to “Settings => About => Test beta features” and restart the app in necessary
  2. Wallets – Download here
    1. In the mobile wallet (iOS & Android)
    2. In the desktop wallet (Windows & Mac OS)
General Information News

Fort Canning – All Information

Fort Canning Go-Live: 15. November 2021

Fort Canning: An Overview

It is confirmed – on November 15th the long awaited Fort Canning update will find its way to the DeFiChain mainnet. With this next big update after Eunos Paya in August, many new features will find their way into DeFiChain and especially into the wallets of the end users. While Eunos Paya introduced many background improvements and features such as 5y and 10y masternode freezers, Fort Canning now includes exciting DeFi features for end users of the DeFiChain ecosystem in particular.

The following features are implemented with Fort Canning:

  • Oracles
    Even though price oracles were already possible before Fort Canning, they find a real application for the first time with Fort Canning. With the help of price oracles, current prices for various assets (shares, ETFs, precious metals, FIAT exchange rates, etc.) are written natively to the DeFiChain blockchain every hour. These prices are then used to create and verify decentralized loans. Without the price oracles, no “values” could be calculated to be deposited as collateral for loans.
  • Loans
    With Fort Canning, it will be possible to take out loans that are secured with cryptocurrencies / tokens. For this purpose, individual tokens (e.g. DFI, dBTC, dETH) must be placed in a vault and cannot be used or sent for other functions for the time being. Afterwards, the value of all tokens in the Vault can be calculated and used as collateral for a credit. The flexible credit amount can then be paid out in various tokens. When the loan amount is paid back, the user finally regains access to the tokens in the Vault. For the time being, loans will only be available in the Mobile Wallet (iOS, Android). More information can be found under “What are decentralized loans?
  • Stock Tokens
    Also with the Fort Canning update, decentralized share tokens (dShares) will find their way onto the DeFiChain. The dShares will not be backed by real shares, but will be generated and traded natively via the blockchain. The generation of new dShares takes place exclusively through the use of loans. Accordingly, tokens are deposited as collateral and new dAktien are disbursed as a loan amount. Subsequently, these shares can either be held, sold or used for liquidity mining (liquidity pools of DEX). For the liquidity pools, only pools in the pattern dShare <> dUSD are traded. For the end user there are two possibilities to buy dShares: 1. by taking out a loan or 2. by buying the dShares with dUSD via DEX. For more info, see “What are decentralized shares (stock tokens)”.
  • Composite Swap
    Another new feature for DeFiChain is the “Composite Swap”. With this, it will finally be possible to perform an exchange of tokens directly across multiple liquidity pools. This allows e.g. a direct swap from dBTC to dETH without having to take a detour via DFI. This cumbersome detour is now performed automatically in the background.
  • Technical Improvements
    In addition to the core updates described above, Fort Canning will again include many technical improvements, especially for easier and safer operation of masternodes. For example, it will now be possible to change the operator address of a masternode after the masternode has been created.

Some of these features will be introduced with Fort Canning on November 15, but will be unlocked a bit later or will only be available on specific wallet types. The term dUSD can also be represented as dDUSD or DUSD and means the tokenized version of the US dollar currency. There are more details in the next sections.

What are decentralized Loans?

As already described in the overview, decentralized loans involve the generation of new tokens for which other tokens have previously been deposited as collateral. Collateral is deposited by moving certain tokens (initially only DFI, dBTC, dETH and dUSD) into a virtual vault. For each vault, a total value of all deposited collateral can be calculated in US dollars using the price oracles (the current prices can also be viewed here:

As soon as the collateral has been deposited in the Vault, the owner of the Vault can have a flexible credit amount paid out. The credit amount can be paid out in any token (DFI, dUSD, dBTC or even share tokens). The maximum credit amount is only a fraction of the stored collateral and depends on the selected credit interest rate. The selected annual interest rate is calculated pro rata for the duration of the loan and is due at the end of the loan together with the repayment of the loan amount. The loan interest rate, the loan amount and the deposited collateral can be flexibly adjusted at any time.

To close a loan, there are two options:

  1. Repayment
    The first option is to repay the loan amount in full. To do this, the same tokens and the same number of tokens that were previously generated for the loan must be “burned” again. Afterwards, the owner of the vault can access the deposited tokens again, which served as collateral for the loan.
  2. Auction/Liquidation
    The second option is the auction of the loan. This occurs if the deposited collateral no longer provides sufficient security for the loan. For example, if 100 DFIs are deposited at a price of 2.50 USD per DFI (total value: 250 USD) and a loan amount of 120 USD has been disbursed (loan to collateral ratio: 250/120 = 2.083), the loan is well secured for the time being (the necessary “loan to collateral” ratio depends on the selected loan interest rate).

    However, if the price of DFI falls to e.g. 1 USD, then the value of all deposited collateral (in this example 100 DFI) is only 100 USD and thus below the disbursed loan amount. Because the loan is now no longer sufficiently collateralized, it is liquidated by releasing it for auction among all other DeFiChain users. The highest bidder then becomes the owner of the vault and can withdraw the assets. The borrower and former owner of the Vault loses that Vault and thus access to his deposited collateral. Instead, he keeps the disbursed loan amount.

    For illustration purposes, a reduction in the value of the collateral below the value of the loan amount was assumed. In reality, however, loans are already put up for auction at the latest when they fall below a collateralization level of 150% of the loan amount. This collateral limit (here of 150%) depends on the selected loan interest rate. The lower the interest rate, the higher the minimum collateralization.

By creating loans, you can also take short positions (betting on a price drop instead of a price increase) and leveraged trades, among other things. You can find more information about this here in the linked videos.

Procedure of a loan:

  1. Creation of a new Vault incl. choice of loan interest rate (also called loan scheme).
  2. Moving tokens (DFI, dBTC, dETH, dUSD) to the Vault as security
  3. Taking the loan by means of creating new tokens (any tokens including DFI, dUSD and stock tokens).
  4. Closing the loan
    • Repayment
    • Auction / Liquidation
  5. Withdrawal of the tokens used as security
  6. Deletion of the vault

What are decentralized Stock Token?

Also as already introduced in the overview, decentralized share tokens (dShares) will find their way onto the DeFiChain with Fort Canning Update. The dShares are not backed by real shares, but are generated and traded natively via the blockchain. The generation of new shares takes place by means of loans based on price oracles as explained above. This means that no real shares are deposited for share tokens traded on the DeFiChain. The collateralization of the dShares takes place exclusively via other tokens/cryptocurrencies on the DeFiChain. This has the enormous advantage that dShares are only considered as tokens and do not have to be considered as shares.

This bypasses some regulations, is treated differently for tax purposes and could become a central part of the DeFi ecosystem of the future. In Germany, for example, it would currently (in 2021) be possible to hold a dShare beyond one year, which would make it possible to sell the dShares tax-free after the holding period. On the other hand, of course, the investor has no voting rights as well as no access to a dividend, since he does not own a real share. In addition, dShares are always associated with the risk that the price of the dShares, e.g. on DeFiChain, does not reflect the price of real shares on stock exchanges.

dShares can be obtained in two ways:

  1. Creation of new dShares via a loan
    As described above, loan amounts can be disbursed in any token, including stock tokens.
  2. Purchase of dShares via the decentralized exchange (DEX)
    All dShares will receive their own liquidity pool with dUSD as exchange currency. Each user can therefore buy a dAshare via the DEX.

The creation as well as the purchase of dAktien is possible thereby also in smallest fractions.

In order to be able to use the DEX liquidity pools, many users must of course provide their liquidity (in the form of dShares and dUSD). For this – as also for existing pools e.g. DFI-BTC – high rewards (so-called block rewards) are given to the providers of liquidity. Especially in the first weeks and months, very high returns are expected for liquidity providers.

Which wallet gets which functions?

Currently, not all wallet types support all features introduced with Fort Canning. You can find an overview of the function availability in the following table:


Kredite -
Erstellen / Schließen

Kredite - 

Aktien Token -
Kaufen / Verkaufen

Aktien Token -
Liquidity Mining

Desktop Wallet

Kommandozeile (DeFiCain CLI)

Mobile Wallet (iOS, Android)

(End of Dec 21) Mobile Wallet
(iOS, Android)

More information & instructions

General Information

DeFiChain Staking

What is Staking?

The most well-known blockchain project – Bitcoin – has been using the so-called proof-of-work consensus mechanism since the beginning of the blockchain in 2009. This mechanism makes the Bitcoin blockchain particularly secure due to its widespread use. However, this mechanism also has a decisive disadvantage: the consensus is achieved by performing work (proof-of-work) and leads to very high energy consumption due to the large number of operators of the blockchain (miners). Many other blockchains therefore opt for a different consensus mechanism – the so-called proof-of-stake. This proves the correctness of the blockchain not by applying computing power/energy, but by using or holding the native currency of the blockchain (this is “DFI” for the DeFiChain). This bypasses most of the energy consumption of a blockchain network. There are other consensus mechanisms that are not explained here.

In proof-of-work based blockchains, the blockchain is continuously updated by the “mining”  further developed – e.g. with Bitcoin, a new block is added to the blockchain approximately every 10 minutes. The “miner” receives a reward for each new block if the block is accepted by the network. To do this, the “Miner” has to solve an arithmetic puzzle, which is solved faster the more computing power the “Miner” uses for it.

In proof-of-stake based blockchains, the blockchain is instead governed by the “staking”  further developed – e.g. With DeFiChain, a new block is added to the blockchain about every 30 seconds. Again, the staker receives a reward for each new block if the block is accepted by the network. For this, the “staker” does not have to solve an arithmetic puzzle, but it is decided at random which “staker” is allowed to create the next block. However, the probability of a “staker” being selected at random depends on the number of its native currency units used or, in some blockchains, on the number of masternodes operated (servers that operate the staking), which in turn are associated with a Minimum number of native currency units (e.g. currently 20,000 DFI with DeFiChain) must be equipped.

What forms of staking are there?

Standard Proof of StakeAnyone holding native currency units of the blockchain can participate in the proof-of-stake process. The probability that someone gets to create the next block is weighted according to the proportion of all currency units staked.
“Minimum Stake” Proof-of-StakeOnly persons with a minimum number of currency units can participate in the Proof-of-Stake process.
Each staking participant has the same chance to create the next block.
The DeFiChain uses this form and requires a minimum number of 20,000 DFI.
Delegated Proof of StakeAnyone holding native currency units of the blockchain can participate in the proof-of-stake process. However, not everyone may/needs to operate a node that participates in the proof-of-stake process. Instead, you can delegate your own currency units to an existing node and still get the prorated rewards. A minimum number of native currency units is often required here as well. The probability with which a node is allowed to generate the next block is weighted according to the share of all currency units staked.

How does staking work on DeFiChain?

The DeFiChain uses the Proof-of-Stake method in the “minimum stake” form. At least 20,000 DFI (or 20,011 DFI including fees) are required to participate in staking and receive the rewards. In addition, a master node must be operated, which is continuously online and participates in the proof-of-stake process.

Each node – regardless of whether it holds 20,000 DFI or 100,000 DFI – has the same probability of being allowed to create the next block. Therefore, with a larger fortune (> 20,000 DFI) multiple masternodes are operated to receive all potential rewards.

How can I participate in staking myself?

The DeFiChain ecosystem currently offers to participate in staking yourself  three alternatives :

Self-hosted master node
  • Operation of your own masternode 24/7
    (e.g. 4 vCPUs, 8 GB RAM and 200 GB hard disk)
  • 20,000 DFI per masternode + 11 DFI fees
  • Receipt of all rewards (currently 110 DFI / block)
  • Own custody of the private key
  • Further information
3rd party hosted masternode
  • Operation of the master node by a service provider
  • 20,000 DFI per masternode + 11 DFI fees
  • Receive all rewards after deducting an optional fee
  • Possibly own custody of the private key
  • Learn more about
Staking service (e.g. CakeDeFi)
  • Operation of many masternodes by a platform operator
  • Anyone can participate proportionately in Masternodes
  • No minimum number of DFI necessary
  • Receive proportionate rewards after deducting a fee (e.g. about 15% at CakeDeFi)
  • No separate custody of the private key
  • Learn more at

What are the risks of staking?

  • Price risk:
    Probably the biggest risk is the fall in the price of the blockchain’s native currency (DFI on DeFiChain). If e.g. If the price of DFI falls by 60% in one year, then even with a 100% APY staking return, you have a net loss in euros.
  • Private key risk:
    If the masternode is operated by itself or at least the address of the masternode is held by itself, the loss of the private key is also a risk. The private key should always be stored professionally and with several safeguards in order to minimize this risk as much as possible.
  • Platform/Blockchain Risk:
    Another risk is that both the blockchain itself and a possibly used platform (like CakeDeFi) can contain software errors that can lead to a total loss of the cryptocurrency if the platform has not taken out insurance for this case or in another way Consumer rights can be asserted.
  • Downtime risk:
    A final – albeit rather unspectacular – risk is potential downtime of the masternodes, which can lead to a lower return. A professional server setup should therefore be used, especially when operating your own master node.