Comdex: Staking and Providing Liquidity via $CMDX.
If you do not know already, $CMDX is Comdex’s official token and Comdex is a decentralized protocol that deals on the digitization, tokenization, and trading of commodities in its decentralized exchange.
CMDX can be used for various purposes, which include:
- Governance, decision-making, and voting on the Comdex ecosystem.
- Staking and earned as Liquidity Pools rewards
- Minting synthetic assets (cAssets).
- Can be used as collaterals for debt assets.
In this article, I’ll be specially taking up the $CMDX feature of Staking and how it plays a role in Liquidity Pools.
When staking, you secure your $CMDX tokens with validators which gives you rewards from time to time through gas fees.
You can stake your CMDX tokens in wallets provided by institutions presently in partnership with the Comdex platform.
This is a major wallet you can use as your best choice for staking CMDX. Here, you can store your CMDX in an independent location — the same way you stake your other Cosmos-based assets.
This wallet is supported by a very strong supporter of the Comdex platform, Cosmos, headquartered in Seoul, South Korea. Cosmostation is the primary validator for Cosmos ATOM token, and it provides tools for Terra, IRIS, Cosmos, and other blockchains based on Tendermint.
This is decentralized finance wallet offers convenience and zero-stress for quicker access to rewards.
This staking wallet allows you to upload digital assets such as non-fungibles, and mint tokenized assets.
2. Providing Liquidity
You can use your CMDX tokens to provide liquidity on Comdex, to gain rewards. This is an advantage to the growth of Comdex.
It enables the platform’s decentralized exchange to sustain much liquidity, to satisfy transaction demands by members of the community, letting them exchange CMDX with speedy completion at delivery stages with lessened transaction costs.
The rewards gotten from liquidity pools are sourced from increase in prices and transaction fees, and are paid every day.
As of date, CMDX can be staked in two liquidity pools, namely the Pool 600 (for CMDX and ATOM) and Pool 601 (for CMDX and OSMO).
In Pool 600, equal amounts of CMDX and ATOM are needed, while equal amounts of CMDX and OSMO are needed in Pool 601.
After picking ADD LIQUIDITY, you will need to select a bonding period of one day, one week, or two weeks. The longer the bonding period, the higher the liquidity pool rewards, and vice versa.
Be careful though, because you have to put your needs and patience into consideration. When tokens are locked, it means that you can never have access to them until the unlocking date reaches. Locking a token for 14 days means you just have to wait for 14 days before you are able to choose whether to withdraw or leave it there.
In the Pool 601, you not only gain rewards in OSMO (like the case is for Pool 600), but you will also be given extra in CMDX.
As these pools are Dual Rewards Pools, in addition to the typical OSMO rewards liquidity providers will also receive extra rewards in CMDX. These additional rewards will last 90 days from the date of the pool’s creation.
Comdex is a decentralized synthetics protocol and a product of the Persistence platform. Comdex develops possible solutions for the decentralization of finance (DeFi) and the democratization of commodities by handing over to investors the knowledge to a widened scope of asset classes with rewarding features.
Join the Community and stay updated: