Proposal to list NGNC/USDC pair and to incentivize the Pool


LINK - a web3 crossborder payment infrastructure for Africa issued a Naira-backed stablecoin ‘NGNC’ which is pegged 1:1 to the Nigerian Naira with reserves held in custody at regulated authorities in Nigeria. NGNC is transferable on the Polygon and Avalanche blockchain as an ERC-20 standard token.

This is a proposal to create and add a NGNC/USDC to the “Ethernet Pools” offered by DFX, and to incentivize that pool.

There are two options on which to vote:

Option 1: YES – Create a NGNC/USDC pool and allocate rewards to the pool.

Option 2: NO – Do not create a NGNC/USDC pool.

Because DFX’s mission is to bring stablecoins to the world, it is only appropriate that NGNC be available on the DFX protocol. NGNC is expected to quickly become one of the most traded foreign stablecoin in Africa and the world.


• Nigerian Naira is the official currency of the Federal Republic of Nigeria.

• Nigerian Naira is abbreviated as NGN.

• The population of Nigeria Is an estimated 218.5 million with most of the population (55%) between 15 – 65years.

• Nearly 35% of the adult population have used or currently own crypto assets, bringing the total crypto users to an estimated 40 million Nigerians.

• In 2021, Nigeria was said to be the nation with the highest ownership of BTC, (32% of the adult population owned BTC) amidst harsh regulations from the government leaving the citizens with no direct bridge into DeFi.

• 8 months into 2022, Nigerians have traded $1B in Crypto with no access to on/off ramps and identity of their currency on the blockchain.

• The world is changing, non-USD stablecoins are on the rise, LINK intends to bridge our country to the market in the next wave of global finance by teaming up with DFX Finance, the leading crypto FX trading protocol.

• Although the number of crypto users is high, Nigeria operates a stringent p2p system to on/off ramp crypto, which has resulted in a hike in prices and exchange rates.

• The current traditional infrastructure and even crypto infrastructure that exists under such high demand are still very fragmented, resulting in low Fx liquidity, and self-prescribed multiple exchange rates.

• LINK offers the perfect on/off ramp platform to millions of crypto-friendly Nigerians to use NGNC.

• Building out the currency pairs on DFX supports and increases the utility of the protocol.

• NGNC is on its way to becoming the first regulated Naira-backed stablecoin


Contract address:

Official Websites:
NGNC - NGN Coin (NGNC) | Fully Reserved Fiat-Backed Stablecoin

If Proposal Passes

• NGNC is a stablecoin pegged 1:1 to the highest crypto holders and user nation in africa.

• The utility of DFX increases as more asset pairs are tradeable.

• LINK is providing the major fiat on/off ramp solution offered to the fast-growing Nigerian market

• Will allow Nigerian users to access DFX directly and potentially onboard millions of users who wish to easily execute Forex transactions and access deep on-chain liquidity.

• The utility of DFX increases as more assets pairs are tradeable.

• NGNC will bring legitimacy to the field of foreign stablecoins. Being that DFX’s slogan is “Stablecoins for the World,” it is only fitting that the soon to-be Africa’s largest stablecoin has a proper home right here on the DFX protocol.

If Proposal Fails

• DFX will not get direct access to the largest crypto hub in Africa and globally.

• NGNC is a new stablecoin (supply is expected to 20x once on/off ramps go live on Polygon in late November/Early December)

• DFX will not have one of the fastest-growing non-USD stablecoins on its platform.

  • Yes, this is the way.
  • No, this is not the way.

0 voters


Seems like a great opportunity. For me personally, I am glad to see that NGNC is backed one-to-one by the Nigerian Naira held in cash and cash equivalent assets, with regular reports.

NGN generally has a two tiered FX market. Generally there is a “black market” rate that is roughly 2x the bank rate. How does NGNC expect to resolve this issue and oracle providers will likely use the bank rate. How do we prevent arbitrage between the two different rates to ensure liquidity providers are not constantly getting arbitraged?


1 Like

So today we introduced two things:

(We would publish the token address and blogpost in this regards shortly)

  1. The Mid-point rate which is the average between the bank rate/mid-market each rate and the parallel (black market rate)

  2. NGNC.x would now be the token to be issued every time fiat Naira is deposited

So the plan is we know that

a. On the oracle/price feeds what can be sent is the mid market rate for a USD/NGN pair representing USDC/NGNC on platforms like DFX

b. When users want to get NGNC into an NGNC/USDC pool, they’ll need to swap/stake their NGNC.x (and this where the beauty of putting the insane arbitrage in check)

  • NGNC.x can be swapped for NGNC at the midpoint rate at (1 NGNC.x = 0.68 NGNC) to mitigate the arbitrage risk (we would create the market for this)

OR • NGNC.x + USDC at the equivalent NGNC at the bank rate would be staked for the user to receive NGNC.x/NGNC on a 1:1 basis

Also other things were considering around this as well is

  • Pegg the NGNC.x = NGNC rate at parallel market (1 NGNC.x = 0.49 NGNC) further mitigating arbitrage

  • Limits on the on-ramps which won’t be too necessary with the above in place

We’re planning on setting this up on Sushiswap :sushi: so everything is in one place

All of this won’t require anything in your end in regards oracle price feeds (as price feeds don’t recognize this constant shifting parallel rates)

when you want to redeem NGNC, the rate would be 1 NGNC = 1.47 NGNC.x = 1.47 NGN

So let’s go round a scenario

Peter has ₦50,000 yeah

Use the LINK API Widget to tokenize to 50,000 NGNC.x

Swaps 50,000 NGNC.x for 34,000 NGNC

Comes to DFX and probably swaps to USD at bank rate let’s say 439.38 which is 77.38 USDC

He decides to go back to NGNC as 34,000 he can either swap it to NGNC.x or off ramp as NGNC which would be recognized as 34,000 NGNC = ₦50,000 off ramped (Converted at the NGNC.x/NGNC rate)

So in terms of mechanics that’s why we’re streamlining everything on marketing and setting it up on Sushi

So the plan is the on/off ramps, swaps, and Staking would be in one place on sushiswap

Link to a blogpost on this