Comdex in the Gateway to Cosmos
In a conference held by the Cosmos network, as a series of talks, for several blockchains in its ecosystem, themed as the “Gateway to Cosmos,” Siddarth Patil, the Co-Founder and Chief Operating Officer of Comdex spoke on the network and its coming stablecoin — $CMST.
He began with an introduction to the network, stating that Comdex was first established to digitize the commodities trading industry, which he mentioned as a 17 trillion US dollar industry (the largest in the world).
Comdex’s goal has always been about creating blockchain-based solutions that will authorize institutional traders to use its platform to settle trades, accelerate their payments, and access financing efficiently.
However, as time went on, the Comdex team realized that financing is what they were more into. They soon listed all of the following plans:
- Asset collaterization
- Asset tokenization
- Creating different exchanges, and mechanisms which would liquidate and manage the collaterals.
Comdex now serves as a decentralized finance layer for the Cosmos ecosystem.
The Comdex chain is strongly supported by a colonnade of pillars, such as plug and play modules, which are able to deliver high-end, trustworthy dApps (decentralized applications). Via Comdex, collaterization, minting, as well as tokenization is possible.
On the Comdex chain, you can find assets powered by the InterBlockchain protocol (open-source system which, for example, links the Comdex chain to the larger Cosmos ecosystem). You can then convert these commodities to collaterals for debts. Comdex is creating InterBlockchain assets which are to be used to mint synthetic assets (known as cAssets), borrow, lend, etc.
The conversion of physical commodities into digital assets is the main function of the cAssets tab of the Comdex Web App. A digital environment is located within the Comdex chain, for the exchange of these non-fungible tokens.
Via the automated market maker system, the trading of commodities (especially those run by the InterBlockchain protocol) on the Comdex blockchain will be sped up for faster, smoother, secure transactions.
Via the use of the peer-to-peer exchange mechanism, in joint force with the AMM technology, more marketplaces will be set up in the Comdex network. P2P modules help in the building of decentralized apps.
Need for Speed
When you look at the Cosmos ecosystem, in terms of decentralized finance, there are not many things which holders of InterBlockchain assets can do to gain liquidity in terms of generating yield.
This is because of the complexity of building using Cosmos. Technologically, there is no doubt about the superiority of the Cosmos SDK and Tendermint.
But a lot of times, builders in the Cosmos ecosystem always find themselves in a spot where if things were more plug-and-play (speedy), they would be able to see a much larger growth within the ecosystem, and that is what Comdex has gone for in its chain.
This was primarily established to tokenize real-world commodity assets and speed up instant trade, settlements, and financing. It is currently live, and has processed over 160 million US dollars in trade workflow volumes.
Comdex Web App
The synthetics application that enables the creation and exchange of synthetic assets using InterBlockchain assets as collateral. It is currently on development, based on the feedbacks received. A series of security audits will be enough to launch its mainnet version.
Coming soon, by the last quarter of 2022, this system includes the digitization and exchange of ownership of commodity trade finance debts. It is focused on creating liquidity and centralized debt by decentralized finance liquidity. This would be done by collaterizing non-fungible tokens which represent real-world assets, and generating liquidity against against them from decentralized finance.
This serves as the mortgage bank for the Comdex community, powered by the IBC (InterBlockchain) protocol. Just like normal physical banks, all currencies in — not just the Comdex network, but — the larger Cosmos ecosystem are made available. It brings more liquidity to assets held in the InterBlockchain system.
For any decentralized finance system to flourish, a stablecoin is needed. The Composite (CMST) will power all the decentralized applications being built within the Comdex ecosystem. The Comdex team spent months digging up findings on various mechanisms and ideas of how stablecoins maintain their price peg.
Composite is essentially the Comdex over-collaterized stablecoin enabled by the InterBlockchain protocol, and backed by the CMDX token. You can use synthetic assets as collateral for CMST based on governance.
- It is fully collaterized.
- It leverages infrastructure and security of the Comdex chain.
- Enabled by InterBlockchain.
- It has a price peg maintenance system, run by HARBOR tokens.
- Backed by Cosmos collateral assets.
- Cosmos ecosystem lacks a native collaterized stablecoin.
- Algorithm stablecoins lack the ability to maintain peg in volatile markets.
- Gives the ecosystem access to liquidity on their holdings.
- Additional utility for native tokens.
- Lending yield on minted CMST
- There is need for an incentivised adoption of decentralized apps.
What is the CMST Peg?
- CMST is always one US dollar.
- Varying stability fees and savings rates to control supply.
- Minting and burning of the Composite governance forum token (HARBOR) controls CMST supply.
Comdex is a decentralized synthetics protocol in the Cosmos crypto network. As a product of the Persistence platform, Comdex develops possible solutions for the decentralization of finance, by handing over to investors the knowledge about a widened scope of asset classes and rewarding projects.
Keep up with all of the updates concerning Comdex’s monetization processes, via the following channels.
Web App: https://dev-cassets.comdex.one/