Decentralized Synthetics Exchange (COMDEX)
Comdex is a decentralized synthetics market that intends to commoditize finance by reducing the difficulties and legal impediments to investing in financial assets with inherent value. Users can utilise the Comdex protocol, which is based on Cosmos, to leverage and collateralize their crypto assets in order to get exposure to a variety of inflation-resistant synthetic assets.
Investors may go “long” on crypto assets while diversifying into other asset classes that offer compelling risk/reward profiles in a low-interest rate, high-inflationary environment.
To facilitate such investments in the Cosmos ecosystem, a fully collateralized stablecoin is required (while holding long crypto positions). This is a current issue for Cosmos, but it’s also one of the primary reasons DeFi has so much room to grow within the Cosmos ecosystem.
Comdex offers the USCX stablecoin, an IBC-enabled stablecoin that facilitates money flow between chains inside the Cosmos ecosystem.
Due to on-chain stablecoin lending and access to synthetic asset investments, users can leverage their “long” crypto holdings by generating collateralized debt positions (CDP) for the issuance of USCX and cAssets. The AMM, cSwap, on the Comdex platform enables for easy trading of synthetic and crypto-assets on the Comdex app.
HOW IT WORKS
Like other of the Ethereum ecosystem’s more well-known decentralised stablecoins (such as MakerDAO’s Dai and Synthetix’s sUSD), Comdex’s USCX maintains a 1:1 soft-peg to the US dollar, which is fully supported by surplus collateral held in on-chain vaults.
Owners of commodities in the Cosmos ecosystem (such as ATOM, XPRT, AKT, DVPN, and CMDX) can use their assets as collateral to mint/borrow USCX and cAssets, which can then be traded on cSwap or exported to other protocols, operating as an indigenous stablecoin for the Cosmos ecosystem.
Comdex will make it easier to build USCX at first by requiring only one asset type as collateral. We wish to widen the scope of this procedure by allowing users to issue USCX tokens on the platform using a variety of assets as collateral.
On the platform, CDPs make it easier to generate USCX and cAsset tokens. A minimum collateral ratio must be maintained in each CDP to ensure that the open debt position is protected from price volatility in the underlying collateral assets (the value of locked-up collaterals must be greater than the value of the USCX tokens produced).
A liquidation event is initiated when the price of the collateral assets falls below a specified threshold, and the locked-up collateral is auctioned off to buy and burn the cAsset or USCX tokens, which are equivalent to the outstanding debt plus liquidation expenses. After deducting the debt and fees, any remaining collateral is returned to the CDP’s owner.
Users can trade their USCX tokens for cAsset tokens on cSwap to take long positions in cAssets. They can now exchange and access a wide range of inflation-resistant synthetic assets (cAssets) on the blockchain. By securing collateral, CDPs can also be utilised to produce cAsset tokens.
cSwap- Comdex’s AMM
Platform users can use an AMM to switch between USCX and cAssets via cSwap (automated market maker). An AMM allows two assets to be traded without the use of a centralised middleman or order books. To allow the exchange of assets between traders, a trading business must “create the market” in centralised systems.
Liquidity providers put their assets in liquidity pools that facilitate cSwap trading in exchange for CMDX token incentives and a part of the pool’s trading costs.
Exchanges in any cAsset are only possible if a liquidity pool has been established for that asset. In order to do so, users must deposit a shifting ratio of cAsset and USCX tokens into the pool. Merchants can now exchange their USCX for cAssets (and vice versa). Every time a trade is conducted, the ratio of USCX and cAsset tokens in the pool changes.
The purpose of Comdex was to develop an ecosystem of solutions that would seamlessly connect commodity assets to users. Comdex aims to provide our users with on-chain access to commodities assets with inherent and verifiable worth.
Comdex’s objective is to remove barriers and limits to increase financial access and inclusion. Thanks to the launching of the USCX, Comdex’s own interoperable stablecoin, crypto investors in the Cosmos ecosystem may now broaden their investment horizons by accessing a spectrum of synthetic assets that aim for uncorrelated returns in anti-inflationary assets that offer intrinsic value.
The Comdex team expects that the USCX token will become the lifeblood of the Comdex and Cosmos ecosystems, enabling for frictionless money transfers and aiding Comdex in becoming a successful Cosmos DeFi hub.
Through our broader vision, we hope to provide information on a variety of commodity and trade finance debt assets to consumers and investors. Our two main products will provide a varied range of assets to the chain, each with its own set of returns and risks.
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