An Overview of Commodo Finance

4 min readOct 4, 2022

Commodo is Comdex network’s financial blockchain-based forum for cryptocurrency banking within Cosmos’s ecosystem.

The platform is used for borrowing and lending the Composite stablecoin ($CMST), along with other currencies and tokens native to the ecosystem.

Commodo is being built solely on the Comdex-1 blockchain, with the incorporation of Lend module and an interblockchain system.

Why Commodo?

I find Commodo to be a reliable platform with helpful benefits for users.

Some of these various advantages include, but are not limited to all of the following:

Meager transaction costs.
Minimization of risks and attacks.
Quick transaction procedures.
Access to direct information via the Commodo modules.
Profiting from providing liquidity for interblockchain commodities.
Having firsthand over opportunities, when the market is highly volatile.
Ability to take long positions when you lend your assets.
Ability to take short positions when you borrow assets.
Ability to carry out transactions in any blockchain within the Cosmos ecosystem.

User-based

Not only will Commodo focus on Cosmos ecosystem, the financial institution also got eyes for exploring other markets in the global blockchain world.

If Commodo is involved in other ecosystems, they will use their various mechanisms for the good of Commodo users. This would be more or less a win-win situation for both entities.

Commodo wants to give its IBC-enabled asset users an opportunity to earn passive yields via an easy but beautiful interface which they would have a good experience with, as well as a tightly secured platform, filled with liquidity. For Commodo, all users are entitled to the trade of synthetic assets across blockchains.

Lending/Borrowing

As a lender of digital convertible assets in Commodo Finance, your rewards are sure to be given you, from time to time, as you participate within the protocol. Likewise, as a borrower, you can pick from whitelists, what assets you want to borrow, and using the assets you own as collateral, which are also subjected to changes depending on the laws of demand and supply within the Commodo platform (thereby affecting the interest rates).

When you deposit an asset as a collateral to borrow your desired asset, the cPool Commodo module would borrow either the $CMST stablecoin or $ATOM currency and move to the cPool of the desired asset. When this is done, the same amount of $CMST or $ATOM would be released as the amount of desired assets you want.

Pooled Lending

The Commodo Finance protocol uses the pooled lending system to avert risks from individual users, unlike person-to-person lending system. The P2P system involves users taking loans while being exposed to direct risks obtained through transactions with other parties.

But on the other hand, pooled lending takes such burden off the shoulders of individual users, by shattering the risks through the pooling of assets in a shared lending pool and lending them out to various individuals. This way, the risks are broken in fragments and become as minute as a rat’s squeak.

Pooled lending is profitable for people who want to borrow assets from lenders at low interest rates. It strengthens the security of the protocol, as well as limits the quantity of a single asset that can be borrowed, to avoid one’s debts piling up too high.

Cosmos cPools

A decentralized protocol that was built to stand against risks and attacks by vectors, Commodo Finance erases some problems people face in loan markets, via structure. The protocol is grouped into unique kinds of money markets called isolated markets.

Commodo terms their isolated money markets as cPools. These are designed for the interblockchain assets found within the Cosmos ecosystem, which are very liquid. cPools are protected from extreme volatile seasons in the global crypto market.

Comdex has also assured its members of money markets for ecosystems outside the Cosmos ecosystem. For example:

Binance,
Ethereum,
Polygon, etc.

How cPools Work

Borrowers and lenders of interblockchain assets socialize in cPools, as borrowers pay and lenders earn a non-static interest rate. Here, there are no intermediaries to discuss terms and conditions with, as both parties associate one-on-one.

As a lender, you are entitled to your rewards from time to time, and as a debtor, you can borrow with collateral assets like $ATOM, as well as overcollaterized assets like the $CMST stablecoin.

The just mentioned cryptos are termed the “transit assets” of Commodo’s cPool system. Every other Cosmos asset in the cPools are paired with, and bridged by them.

cPools for the Comdex’s $CMDX governance token are therefore termed the CMDX-ATOM-CMST cPools, meaning that you can borrow any (or both) of the transit assets by adding your $CMDX to the pool, or vice versa.

About Comdex Network

A decentralized infrastructure layer of the Cosmos ecosystem, Comdex makes use of its network of financial solutions, giving these to their investors, along with major know-hows about classes of assets as well as other beneficial projects.

To gain more further information about the network, follow Comdex via the following:

Website: https://comdex.one/home

Academy: https://academy.comdex.one/

Web App: https://dev-cassets.comdex.one/

Newsroom: https://comdex.one/newsroom

Newsletter: www.comdexnewsletter.com/subscribe

Twitter: https://twitter.com/ComdexOfficial

Telegram: https://t.me/ComdexChat

Medium: https://blog.comdex.one

Discord: https://bit.ly/ComdexOfficialDiscord

Reddit: https://reddit.com/r/ComdexOne/

cSwap Telegram: https://t.me/cSwap_DEX