The DeFi Revolution and Comdex’s Role in this Revolution
The mission of decentralization is to thin the lines between real-world facilities and user control by taking away the power of central authorities. This is the revolution Bitcoin was created for and the reason for the race to Web3.
The DeFi Revolution
Decentralized Finance (DeFi) channels the mission of “thinning the lines” to finance by introducing a variety of financial products and services, which can be found in traditional finance, to Web3, removing the precedent of centralized control.
This is made possible through blockchain and smart contracts which replace the requisite of middlemen and enable decentralization which is the core of Web3.
Smart contracts facilitate the development of applications with the absence of intermediaries or middlemen to carry out transactions. Instead, these contracts contain pre-programmed codes that are automated to execute transactions once the pre-determined conditions are met by the issuer.
Blockchain and cryptocurrency, through which the conceptualization of Web3 became a reality, were built to create financial freedom for users by enabling users to create, own, and hold their currencies in a decentralized way, preventing central sources from having unpermitted access.
Owning and holding these assets also aroused the need to invest and use them in a decentralized manner. This led to the full initiation and mass adoption of DeFi and other sectors of Web3.
According to Trading View, DeFi’s total market capitalization, however, is $45.01 billion out of the overall crypto market supply of $949.8 billion, which is about 4.7%. This is considerably low.
Comdex’s Role in the DeFi Revolution
DeFi has different sections and the very common sections crypto users interact with include Trading like exchanges, DeFi lending, Stablecoins, Synthetic assets or Derivatives, etc.
Comdex is a decentralized finance (DeFi) solution built on the Cosmos ecosystem that focuses on bridging the gap between traditional/centralized finance and decentralized finance in a bid to democratize finance.
Comdex is built with the Cosmos SDK and makes use of interoperable smart contracts through CosmWasm to build an interoperable ecosystem of bleeding-edge DeFi applications and solutions.
Comdex provides different DeFi solutions designed to unlock access to major commodity debt assets and liquidity and other IBC assets. It aims to enable seamless and endless capital flow from CeFi to DeFi and then to all DeFi users.
The DeFi Solutions Comdex Is Providing.
1. Comdex developed a decentralized exchange called cSwap DEX where DeFi users, traders, and arbitrageurs can come to swap assets for other assets, trade assets through its orderbook, and provide liquidity with assets for yields via its AMM mechanism.
This DEX is among the very few DEXs to incorporate orderbook style with AMM mechanism, thus attracting a lot of traders and arbitrageurs.
2. Comdex introduced a new over-collateralized stablecoin called Composite with token ticker ‘$CMST’ to the DeFi industry with a soft peg to $1.
Stablecoins are the stable purchasing powers in crypto and with more of these cryptocurrencies, DeFi users are encouraged to have their financial holdings on-chain in these currencies and interact with real-world services through ramp payment solutions.
To mint $CMST and maintain its peg even in cases of solvency, Comdex created Harbor Protocol and token, $HARBOR. Harbor Protocol uses the Locker module with vaults where collateral assets are deposited with a value greater than the amount of stablecoin minted.
Harbor Protocol is also the DAO for governing $CMST’s solvency and recapitalization decisions.
3. Lending is a great part of DeFi that encourages users to get loans and involves them in yield-generating activities. Seeing the need for more of these protocols, Comdex launched Commodo Finance, a lending and borrowing protocol.
Commodo provides decentralized, efficient, and secure money markets by utilizing the Lend module mechanism that exists exclusively on Comdex.
DeFi users can lend and earn interest and can also borrow listed assets by keeping their lent assets as collateral.
4. Overall, synthetic assets and derivatives are one of the core sections that Comdex is creating more adoption for in DeFi.
There are still volumes of untapped liquidity in traditional finance, especially in commodities. These assets have yet to be adequately synched to Web3 and remain under central control.
The Comdex vision sought to facilitate commodity financing through financial inclusion (via non-institutional vendors) by synthesizing and tokenizing these real-world assets, thereby allowing traders to access a broad range of assets in the financial markets and generate a maximum yield from safer avenues.
To this end, Comdex will be launching ShipFi and Enterprise Trading.
ShipFi will enable the digitization and the exchange of ownership of trade finance debt assets to real-world investment vehicles for highly trusted currency-backed stablecoins. And Enterprise Trading will tokenize real-world assets and facilitate instant trades, settlements, and financing of these assets.
With all of Comdex’s products, real-world commodities can be seamlessly brought to DeFi and provided with a vast number of liquidity solutions created by Comdex.
Comdex is a DeFi protocol built on the Cosmos blockchain network. This protocol focuses on bridging the gap between centralized finance and decentralized finance in a bid to democratize world finance and enable seamless and endless capital flow from CeFi to DeFi.
Comdex develops possible solutions for the decentralization of finance (DeFi) to unlock access liquidity to major commodity debt and derivative assets and other IBC assets.
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