Bitcoin-based DeFi platform DeFiChain is opening up the opportunity for its users to trade crypto versions of Disney, Intel, MicroStrategy stocks, as well as iShares MSCI China ETF.
DeFiChain, which creates decentralized assets (aka dTokens) that perform similarly to stocks, said it community has voted to add:
- $dDIS – Walt Disney Co
- $dMCHI – iShares MSCI China ETF
- $dMSTR – MicroStrategy Incorporated
- $dINTC – Intel Corporation
The four new dTokens will give DeFiChain’d users price exposure, not ownership, to the underlying stocks and ETFs without any restrictions. They are able to mint and trade the above dTokens, which change in value in tandem with their underlying assets.
Participants on the DeFiChain blockchain are also invited to vote on listing other decentralized assets that track Nasdaq-traded stocks like Mastercard Inc, Nintendo Co LTD, PayPal Holdings Inc, Twitter Inc, Uber Technologies Inc, and more. The move is said to provide greater liquidity for cryptocurrencies and greater access across financial asset types.
“DeFiChain is continuously expanding the dToken universe to give users a serious alternative to the traditional financial broker – all whilst offering the flexibility and benefits of decentralization,” said Prasanna Loganathar, the Lead Engineer at DeFiChain.
Users deposit cryptos to mint asset that tokens track
With the launch of its Fort Canning hard fork, users of the Bitcoin-based DeFi platform can also sell fractions of tokens they created, with no need for a broker or other intermediary.
Nevertheless, DeFiChain notes that its dTokens are not “securities”, meaning they give users price exposure but not ownership, voting rights, dividends, or other benefits available to stockholders. The price of the decentralized assets may not always mirror the underlying asset’s price as well because of fluctuations in the supply and demand of dTokens.
Additionally, the value of these tokens is secured not by the traditional assets that they track, but rather by cryptocurrencies that are deposited into vaults. Specifically, users can mint dTokens on the DeFiChain blockchain by depositing BTC, DFI, dUSD, USDT or USDC as collateral.
“dTokens track and reflect a number of variable factors, and use oracles to capture those feeds. The price of dTokens may not always mirror the underlying asset’s price because of fluctuations in the supply and demand of dTokens. A dToken can either be held as an investment, traded on the DeFiChain DEX, or used for Liquidity Mining on the DEX,” the company explains.