Xend Finance, the first decentralized finance (DeFi) project from Africa, has announced a collaboration with Dafi Protocol to increase the adoption and utility of its native XEND token.
Announcing the partnership via an official blog post, Xend Finance said the collaboration would resolve hyperinflation issues that most decentralized protocols face when offering tokens as a liquidity reward.
Hyperinflation occurs when the circulating supply of tokens keeps increasing and cannot maintain equilibrium between token demand and supply.
Dafi Protocol, as a result of the partnership, would create a new unique inflation model which would reward users later instead of earlier. The blockchain protocol would implement synthetic dTokens, which are pegged to the project’s native token, for every DeFi economy. These tokens are released in accordance to the ongoing dynamic between protocol demand and token inflation.
Notably, Dafi will create a synthetic version of XEND – the dXEND token. The dXEND tokens would be pegged to XEND tokens in a 1:1 ratio and be integrated into Xend Finance’s staking model.
Ugochukwu Aronu, CEO of Xend Finance, says, “Our vision is not only to create a world-class DeFi platform for users all over the globe, but also to create value for our long term supporters. We have observed how other DeFi platforms have suffered from hyperinflation as the platforms have grown in popularity. Our partnership with Dafi will help us create a sustainable token staking model, which will reward the long term users and early supporters as the network usage continues to expand.”
Xend Finance Could Transform the DeFi Space
Additionally, Zain Rana, founder of Dafi Protocol, while expressing excitement with the collaboration, said Xend Finance, the first DeFi project from Africa, can transform the global DeFi space and lead to massive development.
Zain Rana says, “We believe that by integrating Dafi’s unique staking models & dXend, it will cause a new wave of transformation and drive long-term benefits to Xend Finance’s users.”
Additionally, Xend Finance outlined core economic principles that will guide the staking model. It noted that new staking models would balance market fluctuations and reward token holders without infusing excess supply. This would invariably boost mainstream adoption as well as providing extensive value for users.
Xend Finance Partners ForTube
In another development, Xend Finance recently announced a partnership with popular open-source DeFi lending platform ForTube. The partnership will provide customers with better opportunities and solutions to make smarter DeFi investment decisions.
According to the announcement, Xend and ForTube will collaborate to enhance decentralized savings, lending, borrowing, and investment services for credit unions and cooperatives.
Notably, as a result of the partnership, Xend Finance’s lending pool will now have the support of Fortube. Xend’s users will also be able to utilize ForTube’s wealth management and aggregate mining services.
In return, Xend will aggregate ForTube customized wealth management and earning options to open ways for the best APY (Annual Percentage Yield) strategy.
At the time of publication, XEND was trading at $0.862440 with a 24-hour trading volume of $1,521,226. It currently has a circulating supply of 32.5 million coins, and its all-time high was $3.
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