Veteran cryptocurrency investor Polychain Capital has joined a funding round in DFX Finance, a new decentralized finance commutation protocol optimized for non-U.South. dollar stablecoins.

DFX raised more $5 million in seed funding from Polychain and True Ventures to create a new blockchain-powered marketplace for stablecoins and open up DeFi applications to a global audience. Announcing the news Wednesday, DFX said that other investors included industry players like Hex Capital, CMS Holdings, Castle Isle Ventures and DeFi Alliance.

DFX is currently being developed by contributors from major crypto projects and firms similar the Ethereum Foundation and ConsenSys. The platform is looking to provide a solution for DeFi users residing outside of the Us who often have to take on U.South. dollar take chances when depositing, collateralizing and pooling liquidity.

Equally such, DFX volition debut liquidity mining, launching with iii strange stablecoins, including the Canadian dollar-pegged CADC, euro-based EURS, and the Singapore dollar-pegged XSGD. As the platform grows, DFX will add more stablecoins and plans to allow DFX tokenholders to vote for new coins they'd like to add to the platform.

In social club to enable liquidity mining, DFX is using major U.S. dollar-pegged stablecoin USD Coin (USDC). "Nosotros leverage USDC in the heart of DFX as all of our non-USD stablecoins are paired with USDC," core DFX contributor Kevin Zhang told Cointelegraph.

Niraj Pant, partner at Polychain Upper-case letter, believes that DFX has solid potential to get a major player in DeFi industry:

"By bringing FX into the DeFi space, we believe DFX volition enable dozens of novel applications. Ultimately, we believe DFX is well positioned to get a core piece of DeFi infrastructure."

Amidst the DeFi manufacture steadily gaining momentum, Polychain Upper-case letter has been actively investing in diverse DeFi projects. Before in February, the company participated in a $1 million funding round for Manta Network to assist the startup build a fully individual decentralized exchange on Polkadot.