The first decentralized Forex market: ForDEX

One of the four innovations Geminon has created in the last year is a fully decentralized exchange of stablecoins from different countries (ForDEX).

The mechanism created by Geminon is completely different from stablecoin exchanges (StableSwaps) like Curve:

  • StableSwaps are designed to trade two assets whose exchange price remains constant, usually USD-pegged stablecoins. On the other hand, ForDEX allows you to exchange currencies of different denominations, whose relative price is variable.

Paradigm shift

One of the reasons that decentralized Forex markets have not been developed sooner is the monopoly held by stablecoins based on the US dollar. It was not until very recently that other alternatives, almost exclusively based on the euro, have begun to appear.

This situation of dominance of the USD as a reference stablecoin in the blockchain could change soon due to several factors:

  • Changes in the geopolitical order: the dollar is losing its status as the world’s reserve currency due to several factors. More and more countries are willing to use other alternatives for international payments.

At Geminon we are aware of this paradigm shift and for this reason we are beginning to create an ecosystem of stablecoins from all countries. Our deflationary currencies (USDI and EURI) have already been joined by versions of the dollar (USDG), euro (EURG), Chinese yuan renminbi (CNYG) and Japanese yen (JPYG), to which we will soon add others such as the Swiss franc, the pound sterling or the Indian rupee, to name just a few.

Geminon will thus become the first protocol to create a complete decentralized Forex market that is also interoperable on multiple blockchains.

Technical barriers

The main reason that decentralized stablecoins other than USD have not been developed sooner is the technical complexity of doing it securely.

Since, until very recently, the only centralized stablecoins in existence were pegged to the dollar, there was no price reference within the blockchain nor arbitrage possibility to maintain a peg to a currency other than the USD.

For this reason, in order to build decentralized stablecoins other than USD, it is necessary to use an external oracle (e.g. Chainlink) to obtain real-time prices of the fiat currencies that you want to replicate. However, due to the intrinsic characteristics of blockchain technology, there is a delay between the moment the price is observed in the market (real world) and the moment the data is written to the blockchain. The total time that this process lasts can be more than a minute in some networks.

Due to the delay with which the oracle reflects prices within the blockchain, it is theoretically possible for an attacker to make a risk-free profit by trading an asset whose price is set using this oracle. For this, it would only be necessary to observe the price of the asset in the real world, which would allow knowing in advance how its price will change on the blockchain in the immediate future (temporary arbitrage).

Therefore, the key to the creation of Geminon’s decentralized Forex market has been the development of an advanced security system that prevents this type of attack from being carried out. To find out more about how this system works, it is advisable to consult the technical documentation of the protocol:


Stablecoins are one of the three primitives on which the entire DeFi ecosystem is based, and probably the most important in terms of the adoption of this technology on a large scale. At Geminon we also believe that in order for such adoption to take place in the current context, there must be other stable currencies other than the dollar, as well as decentralized markets in which they can be exchanged without restrictions.

It is very likely that in some time we will begin to see different projects offering these alternatives appear on the market. For this reason, at Geminon we wanted to get ahead and be the first to do so.

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