DeFiChain, the world’s leading blockchain on the network dedicated to bringing decentralized financial applications and services to everyone, has officially activated the much-anticipated Fort Canning Road hard fork on its network at 4:36 AM CEST on Monday, April 11th on Block Height 1,785,960.

Fort Canning Road’s hard fork signifies the introduction of code upgrades to fix the premium pricing issues of dTokens. Due to a high demand, dTokens trade at a 15-20% premium to the price of corresponding stocks. This prevented investors from taking a long position on dTokens.

U-Zyn Chua, Lead Researcher at DeFiChain, commented, “Bringing dTokens closer to their real world counterparts will make them significantly more attractive for investors and pave the way for the future adoption of DeFiChain. Additionally, the futures contracts offer lucrative arbitrage opportunities for traders.”

The DeFiChain blockchain mintes dTokens, which are decentralized assets that replicate real-world stock market prices. They track and reflect a variety of variables and use oracles for those feeds. These tokens give the user price exposure but not ownership to the underlying assets. They are also free from trading restrictions and geographical limitations.

Fort Canning Road is a hard fork that brings forwards contracts. This helps to maintain a +/– 5% range in dToken price relative to the shares actually traded. DeFiChain users can take advantage of short-term arbitrage opportunities if the price for a token is less than 5% from its real value. It’s because once a week, i.e. every 7*288 blocks, the price of each dToken is brought within the +/- 5% range of the corresponding stock’s price.

It offers a sneak peek into the Futures & Options trading that will arrive on DeFiChain later this year. DeFiChain offers futures-like trades instead of burning tokens artificially and risking that the system will become overloaded with unsecure tokens. Fort Canning Road’s update does not address the issue with dTokens priced higher than their counterparts in reality.

Another major upgrade arriving with the Fort Canning Road is that DeFiChain’s native stablecoin dUSD will be treated the same way as the mandatory 50% DFI in vaults with a fixed price of $0.99. This means that users no longer need to supply at least half of their collateral as DFI when minting new DTokens. They can now mint new DTokens using only USD as collateral. DFI is the native token for the DeFiChain Blockchain.

You can use a dToken to invest in, trade on the DeFiChain DEX or do Liquidity Mining using the DEX. By depositing BTC or DFI as collateral to the DeFiChain vault, users can create dTokens using the DeFiChain Blockchain. But, mining is not the only means to have decentralized assets. Users can also buy dTokens – even in fractional pieces – on the DeFiChain DEX.

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