Introducing CMST (Formerly USCX) on the Comdex Blockchain
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Comdex, a decentralized trading enterprise for commodities, has always had the aim of building strong connections between the world of decentralized finance (the crypto world) and that of centralized traditional finance (of the real world). This unwavering goal is what brought about the Web App (its decentralized synthetics exchange), and is about to establish the concept of ShipFi.
However, the need of enough digital cash supplies to push this journey forward is inevitable, since the development of crypto networks depends on how much value of funds are secured.
Therefore, the Comdex team took note of this beforehand and developed upon its stable coin which they called USCX as a forerunner of the ShipFi SHIP token (to be launched before the year 2022 runs out).
Now, the USCX token has been renamed to CMST, and a new forum for it (called Composite) has been launched as well, where the new HARBOR token will be used for governance and decision-making.
About CMST
The CMST token is an over-collateralized stablecoin which stabilizes the purchasing power for commodities across the Comdex decentralized applications, and which can be used to trade with members of other crypto networks within the global Cosmos ecosystem.
Also, as an over-collateralized — and not an algorithm — stablecoin, the CMST token will be backed by Cosmos stablecoins & assets and maintain all the project tokens within Comdex’s blockchain, as a reserve for issuing lower stablecoins like itself, in order to withstand the frequency of price inflations and deflations.
In a simple sentence, the CMST as an over-collateralized stablecoin means that debts based on it are never larger than the pledged securities (known as collaterals) used to acquire these debts.
CMST Defense Layers
The CMST token — as a stable coin — will be pegged to the rate of US$1, and you will be able to mint it by using your Cosmos digital assets (such as $DAI) as collaterals. Moreover, the peg of $1 has to be maintained, but how will this be so?
Stablecoins like Bitcoin’s BTC, Ethereum’s ETH, Cosmos’s ATOM, etc, use a number of security methods — known as defense layers — to guard them from frequently fluctuating in price. So far, five defense layers are beared in mind by the Comdex network to be put in place for CMST users.
These defense layers work hand-to-hand with one another, in an automated system in which in a case where any shuts down, the others will keep the CMST pegged rate of dollar conversion going.
What are they?
1. Over-collateralization
As mentioned earlier, this method eases the frequency of fluctuating prices. Via over-collateralization, all Comdex members would have the ability to mint CMST tokens using various collaterals, thereby keeping debts under and promoting the possession of assets in excess of liabilities, to pay their debts.
2. Stablecoin Reserve
In here, a number of stablecoins (USDC, DAI, ATOM, USDT, etc) would be stored by Comdex users who mint CMST tokens at a ratio of 1 to 1, by which the CMST can be traded and burnt afterwards (to be minted again). Stablecoin reserves enable price stability, and using this method within Comdex provides its members with many opportunities.
3. The Surplus Module
This is a principal tool to maintain the peg of minted CMST tokens. Minted CMST tokens are debts with locked up assets which generate an interest that is sent to the surplus module. It is used to control the issuance of $CMST.
4. Emergency Shutdown
This enables that all Comdex users have the purchasing power they deserve and receive the net value of the assets they are entitled to by temporarily stopping all the transactions being run on the blockchain.
5. HARBOR Token
As the decision-making tool of the Composite (CMST) forum, it can be minted and used to buy back CMST from the market. Its purchasing power would rise when the surplus module almost runs out and will be the last defense layers.
When this occurs m, the emergency trigger is initiated through governance vote which will put a stop to the minting and stop the protocol.
When the last defense layer is reached but the price still fluctuates frequently, the mint and transactions on the forum would be halted temporarily; but with the above strong defense layers, there is hardly any chance of such situation rising.
In essence, CMST is a secure stablecoin, and it would soon be possible for Comdex users to accrue benefits by providing CMST liquidity on Commodo (Comdex’s loan bank). Soon enough, CMST tokens would be used for loans and minting other cryptocurrency-based assets within the Comdex community.
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About Comdex
Comdex is a decentralized synthetics protocol in the Cosmos crypto network; Comdex develops possible solutions for the decentralization of finance (DeFi) by handing over to investors the knowledge about a widened scope of asset classes and rewarding projects.
To keep up with updates concerning Comdex’s monetization processes, you can follow up on:
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
Reddit: https://reddit.com/r/ComdexOne/
