DIP070 - Onboarding AnchorX ($AxCNH) to dForce

Executive Summary

This proposal recommends onboarding AxCNH — an offshore Chinese Yuan (CNH)-pegged stablecoin — to dForce protocols, starting with Unitus Finance on the Conflux blockchain. The integration will allow users to deposit and borrow AxCNH, expanding access to CNH-linked assets in DeFi. To mitigate the risks of a nascent asset, AxCNH will initially be restricted from use as collateral.

Supporting AxCNH positions dForce at the forefront of CNH-linked DeFi, strengthening our narrative as “The Gateway to Compliant CNH Yield on Chain.” This move can drive TVL growth, new user adoption, and strategic alignment with the fast-emerging CNH stablecoin market.

Although AxCNH currently has modest liquidity and trading activity, its long-term potential reflects the broader booming demand for CNH stablecoins. By onboarding AxCNH with conservative parameters, dForce captures first-mover advantage while laying the groundwork for future CNH-focused DeFi initiatives across our ecosystem.

Background

What is AnchorX ($AxCNH)?

AnchorX is a Hong Kong–based fintech company dedicated to delivering reliable digital currency solutions that bridge traditional fiduciary trust with blockchain-based assets. Its flagship product, AxCNH, is an offshore Chinese Yuan (CNH)-pegged stablecoin, fully backed by transparent reserves and redeemable 1:1 for CNH fiat.

In June 2025, AnchorX received approval from Kazakhstan’s Astana Financial Services Authority (AFSA) — the region’s first stablecoin-related approval — establishing AnchorX as a regulatory pioneer in Central Asia.

AxCNH launched on Conflux eSpace in July 2025, in partnership with Conflux Network. Liquidity is currently provided through Swappi DEX pools, including the AxCNH–USDT pair, with integrations that allow seamless swaps and transfers. While adoption is still in its early stages and market capitalization remains modest, AxCNH has already begun establishing a footprint as a compliant CNH-linked stablecoin with long-term strategic potential.

Prospects for CNH Stablecoins

The CNH stablecoin sector is gaining strong momentum as part of China’s broader strategy to promote yuan internationalization and reduce reliance on the U.S. dollar. After the dollar’s sharp decline in early 2025, Chinese institutions accelerated efforts to expand offshore Chinese Yuan (CNH) usage through blockchain-based stablecoins, targeting cross-border trade, payments, and settlement efficiency.

Regulatory progress are also supportive. Hong Kong’s 2025 Stablecoin Bill enables licensed issuance of fiat-backed tokens, while mainland regulators have signaled cautious openness toward offshore CNH stablecoins under proper oversight. AnchorX’s AxCNH is among the first movers, but it is not alone — major Chinese players are also preparing to enter the space. Tech giants like JD.com and Ant Group, as well as state-linked firms such as CITIC Group, and Guotai Haitong are reportedly exploring licenses for stablecoin issuance.

Analysts estimate the global stablecoin market could reach $1.6–$3.7 trillion by 2030, with CNH stablecoins emerging as one of the fastest-growing segments. Early integration of assets like AxCNH into DeFi platforms gives dForce the opportunity to lead this shift and position itself as “The Gateway to Compliant CNH Yield on Chain”.

Motivation

Integrating AxCNH into Unitus Finance offers dForce a strategic first-mover opportunity in CNH-focused DeFi. While the asset’s current market cap and liquidity remain limited, the focus should be on the long-term potential of CNH stablecoins as a high-growth asset class, positioning dForce as “The Gateway to Compliant CNH Yield on Chain.”

• First-mover advantage: Early support of AxCNH enables dForce to pioneer CNH-denominated yield opportunities on-chain, attracting users and institutions seeking diversified stablecoin exposure beyond USD dominance.
• User opportunities: Borrowing AxCNH against established collaterals (USDC, USDT, ETH, CFX) unlocks new CNH-denominated trading and hedging strategies.
• Unique narrative: CNH stablecoins are nascent, giving dForce a chance to own the compliant CNH yield narrative in DeFi.
• Ecosystem synergy on Conflux: Conflux prioritizes China-facing and compliance-driven use cases. AnchorX’s integration aligns with this vision, strengthening Conflux’s native ecosystem while positioning dForce as a key infrastructure provider for CNH-focused DeFi. This enhances dForce’s visibility, attracts new users and projects, and reinforces its reputation as a compliant, innovative platform bridging global stablecoins with multi-chain DeFi.
• Future growth potential: Even though AnchorX currently has a small market cap and trading volume, CNH stablecoins have the potential to grow significantly as adoption increases. By supporting AnchorX early, dForce establishes itself as the go-to infrastructure for this asset class.

Risk Assessment

AxCNH's integration involves risks typical of emerging assets, including oracle dependencies and liquidity constraints. These are mitigated through conservative design and existing infrastructure.

Key Risks and Mitigations

• Oracle Risk: Pricing uses Pyth oracles for fixed CNH (CNH/USD) exchange rates, with Pyth delivering real-time FX feeds to Conflux eSpace. Potential failures or manipulations are minimized by Pyth's decentralized, multi-source aggregation, but could affect valuations. Mitigation: Incorporate redundancies and ongoing monitoring.
• Liquidity Risk: AxCNH maintains a pool on Swappi DEX for swaps and price discovery, but depth is limited, risking slippage in volatile scenarios. Recent launches show early volatility from low volume. Mitigation: Enforce supply/borrow caps; incentivize liquidity via governance.
• Market and Peg Risk: Low market cap exposes AxCNH to depegging from speculative pressures or shocks, as seen in early 2025 trading spikes. Mitigation: Exclude as collateral; implement peg surveillance.
• Regulatory Risk: While offshore-focused with AFSA approval, broader Chinese policies could impact growth. Mitigation: Phased rollout with compliance reviews.
• Collateral Risk: AxCNH will not be eligible as collateral, removing systemic liquidation risks. Users can only borrow AxCNH against established, whitelisted assets (e.g., USDC, ETH, CFX, etc). *Mitigation: This approach confines exposure to proven collateral, ensuring protocol stability while supporting CNH-denominated borrowing. *****

Risks are controllable, ensuring limited exposure to dForce's ecosystem.

Suggested Parameters

• Collateral Factor (Loan-to-Value): 0%
• Liquidation Threshold: 0%
• Reserve Factor: 10%
• Liquidation Penalty: 7%
• Supply / Borrow Cap: 50M / 50M
• Oracle Provider: Pyth (USD/CNH)

Parameters can be progressively scaled upward as AnchorX grows in adoption, liquidity, and stability.

Proposal

We propose onboarding AxCNH — an offshore Chinese Yuan (CNH)-pegged stablecoin issued by AnchorX — to dForce, beginning with Unitus Finance on the Conflux blockchain. Users will be able to deposit and borrow AxCNH on Unitus, while the asset will initially remain non-collateralized to mitigate risks associated with a nascent market.