Decentralized Assets

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Tokens

There are really two types of tokens on DeFiChain. One type can be made by anybody, but users have to pay a fee to make them. However, the fee is returned when returning the tokens. These tokens are not significant to understand, and there is no not need to pay much attention to them, as the majority of users do not use them. It is only important to know that when there is a wallet with seemingly random tokens, they are most likely part of this type. These tokens have no monetary value or use in DeFiChain, with possible exceptions for token holders.

The other type of tokens are known commonly as dTokens. These are very important to DeFiChain. In DeFiChain and its DEX, or decentralized exchange, there are tokens labeled as dBTC, dETH, or even dSPY, and dQQQ. As a beginning user, they may notice that they resemble some assets, but they have a "d" in front of them.

These tokens must be backed with collateral before they can be made (the official word is "minted") and introduced to the network. The tokens have a "d" in front of their name because they are not the real coin or asset. dBTC cannot be sent and sold to Binance, and dSPY cannot be sent to Robinhood to get U.S. dollars. They are tokens that exist only on the DeFiChain network so that investors can invest in crypto and in stocks and ETFs and keep everything in their wallet on DeFiChain.

With this concept, investors can make a portfolio that is almost completely decentralized. No exchange or platform holds your stocks and crypto, but can be put in a cold wallet for security. Investors could buy some dSPY, dAMZN for stock exposure and dVNQ for real estate exposure, then buy some dTLT and dGLD for bonds and gold exposure, then add dBTC and dETH so they can diversify your crypto holdings, leave cash in DUSD, the DeFiChain stablecoin, and then have some DFI, which has a maximum supply of 1.2 billion.

Comparison Table

	Traditional Brokerage (example: Fidelity)	Fintech (example: Robinhood)	CEX (example: Binance)	DEX (example: Uniswap)	DeFiChain
Decentralized	❌	❌	❌	✅	✅
Security and Reliability	✅ Been around for decades	✅ Has less of a track record	❌ Often criticized for hacks, seen as sketchy	❌	✅ Although less of a track record, connected to Bitcoin for safety and assets are backed up by no less than 100% of their value
Trade derivatives	✅	✅	✅	❌	Coming soon
Trade stocks	✅	✅	❌	❌	✅ Available, but with a smaller selection
Trade bonds and commodities	✅ Usually available	✅ May be available	❌	❌	✅ Available, but with a smaller selection
Trade big cryptocoins (BTC, ETH)	❌	✅	✅	✅	✅
Trade cross-chain cryptocoins	❌	✅ Depends	✅	❌	✅ Not the actual asset itself but its tokenized version
Trade smaller altcoins	❌	✅ Highly Limited (25 or less)	✅ Moderately Limited (100-200 or less)	✅	✅ Highly limited (only a couple, but it is being worked on)
Potential to use assets for extra cashflow and/or rewards	❌	❌	✅ Limited selection due to regulation	✅ Staking/Liquidity Mining/Others	✅ Staking/Liquidity Mining