Background

Behind DEX Tokens there is the idea that "1 tokenized share should be worth 1 share," although that is not proper backing, of course. dTokens are partially bound by the pressure of users buying to repay loans at a discount and the selling pressure of borrowing tokens when at a premium. To give dTokens another way to stay close to its counterpart, DeFiChain introduced future swaps, which adds pressure to stabilize dTokens if they have too much deviation. 

What are Future Swaps?

Future Swaps are made on pairs involving DUSD and a stock token. Currently, they are only able to be completed on the mobile DeFiChain wallet. They allow you to purchase a stock token at 5% above the oracle price, or sell a stock token 5% below the oracle price. The system burns the tokens you are selling and mints the tokens you are buying. The caveat to the swap is that they can only be done at a predetermined time every 20,160 blocks (approximately a week). 

The fact that a swap may take days to execute means that when trying to execute a future swap you will be exposed to the risk of both the assets' volatility compounded with the risk of the tokenized assets. However, a future swap can be canceled if it has not yet been executed.

How to Make a Future Swap

1. Navigate to the DEX page and find the DUSD pairs.

2. Click on the token pair that you want to execute the future swap on. For the purpose of this tutorial, we will use the dSPY-DUSD pair.

3. On the top, change the "instant" option to the "future" option.

4. If applicable, click the white circular button if you want to change the side you are swapping. Then enter the amount of token you want to sell.

5. Click the "Continue" button to proceed and finalize your swap.

Next, check out our tutorial on bridges!