Decentralized Finance populary known as DEFI, basically takes centralized financial products and recreates the same services and yet leave the governance entirely to code or a network of remote participants. We have had several awesome projects but also handful of scams too, Moneta ($MON) and DCHF are two coins from Defi Franc designed to bring banking services with a decentralized protocol.
Table of Contents
What is Defi Franc
Defi Franc is a decentralized finance protocol built on top of the Ethereum blockchain, it has two tokens, $DCHF and $MON.
WHat is $DCHF
$DCHF is a stable coin, pegged to the Swiss Franc, a sharp deviation from the norm where almost all stable coins are pegged to the United States Dollar.
They argues that the Swiss Franc is more stable than the United States Dollar and has proven to be less volatile, less inflationary and often gains value in times of global unrest.
This argument is backed by facts, indeed, the United States Dollar has been losing value to the Swiss Franc since time memorial.
Choosing Swiss Franc for the stable coin, provides more stability than any fiat currency the world could ever provide, if recent history is anything to rely on.
What is $MON
Unlike $DCHF, $MON is a free floating token, it allow users to participate in the Defi Franc ecosystem. $MON is not a stable coin, it is not pegged to another currency and it is designed to grow in value as adoption of Defi Franc continues. $MON is the primary token used in participating in the Defi Franc ecosystem.
How Does Moneta Work
The protocol allows users to do the following effectively;
- Borrow
- Stake for earnings
How Much Can You Borrow on Defi Franc
You can borrow up to 10% of the collatoral you deposit.
What Type of Collatoral is Accepted
Two cryptocurrency’s are accepted; Ethereum and wrapped Bitcoin (WBTC)
How Long Do I have to wait for the Loan
The loan approval is near instant
What is the Interest Rate on Defi Franc Loan
Defi Franc does not charge interest rate on loans. Indeed the interest rate is zero. However, users are charged a one time fee of 0.5% for the transaction to happen on the protocol
How to Borrow with Defi Franc
the protocol allow users to deposit Ethereum and (or) Bitcoin as collatoral and to borrow against these assets. Here are the steps to take to borrow using Defi Franc.
How to Borrow with Defi Franc
Total Time: 6 minutes
Visit the Defi Franc App
An image similar to the one above would show.
Connect Wallet
In other to perform transactions on Defi Franc, you need to connect your Ethereum wallet. Click on connect wallet from the too right corner.
Select Your Wallet
Currently 3 wallets are supported on the protocol, Kindly choose your wallet and proceed.
Authorize Your Wallet.
Authorize the website to access your wallet. On Trust wallet, you would be asked to scan a QR code like this. If you use Meta Mask, your browser would simply pop up the Metamask application for you to authorize the use of your account.
For Trust Wallet Users Only (Skipp if you use any other wallet)
Open your mobile wallet,
Go to settings
Tap Scan QR Code
Point your Camera at the QR code shown to you on the step above.
(This step is not neccesary if you use Meta Mask Wallet)
Cick on Borrow
After you click on borrow, a page similar to the one above shows up. You can borrow from this page. Remember you are borrowing against your collatoral, i.e the cryptocurrency’s you already have. Thus in order to borrow, you would have to deposit your collatoral.
Deposit Collatoral
Click on Deposit, and authorize the transaction on your wallet to deposit your collatoral.
Withdraw Your Loans
After the deposit transaction has been confirmed, you can now borrow up to 10% of your collatoral into the stable cin $DCHF for use.
How to Earn on Defi Franc
The Defi Franc protocol allows users to stake their cryptocurrency’s and to earn rewards. These rewards are generated from the fees charged when one takes a loan, or redeems a token.
The process to stake is simple and fast. Once you stake, you begin to earn from all the fees on the platform.
Can Defi Franc Fail
Issues like a hack or error in code can cause any platform to fail, however, the protocol is permitting users to borrow up to 10% of their collatoral, and the protocol liquidates the borrower once the value of their collatoral drops beneath 10%.
That kind of system is logically foul proof, and leaves very little room for abuse.
Is My Collatoral safe with Defi Franc
Unlike Nexo, Defi Franc is decentralized, thus your asset is not controlled by a central party. We can safely conclude that your assets are safe from central party disruptions.
Differences Between Defi Franc and Nexo
| Nexo | Defi Franc |
| Centralized Control | Decentralized Control |
| Max Loan You Can Take is up to 70% of collatoral | Max Loan You Can Take is up to 10% of collatoral |
| Requires Identity verification | Does not require identity verification |
| No Stable Coin | Stable Coin $DCHF present |
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