COMDEX - The decentralized synthetics exchange
Comdex is a decentralized synthetics market with the goal of commoditizing finance by removing the barriers to investing in financial assets with inherent value. Users can leverage and collateralize their crypto assets using the Comdex protocol, which is based on Cosmos, to gain exposure to a variety of inflation-resistant synthetic assets.
In a low-interest rate, high-inflationary environment, investors may go “long” on crypto assets while diversifying into other asset classes that provide compelling risk/reward profiles.
A fully collateralized stablecoin is required to support such investments in the Cosmos ecosystem (while holding long crypto positions). This is a current Cosmos issue, but it’s also one of the main reasons DeFi has so much potential to expand within the Cosmos ecosystem.
The USCX stablecoin from Comdex is an IBC-enabled stablecoin that allows money to travel between chains within the Cosmos ecosystem.
Users can leverage their “long” crypto holdings by generating collateralized debt positions (CDP) for the issuance of USCX and cAssets, thanks to on-chain stablecoin lending and access to synthetic asset investments. The Comdex platform’s AMM, cSwap, allows for convenient trading of synthetic and crypto-assets on the Comdex app.
HOW IT WORKS
Comdex’s USCX, like other well-known decentralised stablecoins in the Ethereum ecosystem (such as MakerDAO’s Dai and Synthetix’s sUSD), maintains a 1:1 soft-peg to the US dollar, which is completely supported by surplus collateral kept in on-chain vaults.
Owners of Cosmos ecosystem commodities (including ATOM, XPRT, AKT, DVPN, and CMDX) can use their assets as collateral to mint/borrow USCX and cAssets, which can then be sold on cSwap or exported to other protocols, acting as an indigenous stablecoin for the Cosmos ecosystem.
By requiring only one asset type as collateral, Comdex will make it easier to create USCX at start. We want to broaden the scope of this method by allowing users to use a range of assets as collateral to produce USCX tokens on the platform.
CDPs make it easy to generate USCX and cAsset tokens on the platform. Each CDP must maintain a minimum collateral ratio to protect the open debt position 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).
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 charges, when the price of the collateral assets falls below a predefined threshold. Any remaining collateral is returned to the CDP’s owner after the debt and fees have been deducted.
To take long positions in cAssets, users can trade their USCX tokens for cAsset tokens on cSwap. They can now use the blockchain to trade and access a variety of inflation-resistant synthetic assets (cAssets). CDPs can also be used to create cAsset tokens by securing collateral.
cSwap- Comdex’s AMM
Users of the platform can use cSwap to swap between USCX and cAssets using an AMM (automated market maker). Without the use of a centralised middleman or order books, an AMM allows two assets to be traded. A trading business must “create the market” in centralised systems to allow traders to exchange assets.
In exchange for CMDX token incentives and a share of the pool’s trading costs, liquidity providers deposit their assets in liquidity pools that support cSwap trading.
Exchanges in any cAsset are only possible if the asset has been assigned to a liquidity pool. Users must deposit a shifting ratio of cAsset and USCX tokens into the pool in order to do so. USCX can now be exchanged for cAssets by merchants (and vice versa). The ratio of USCX and cAsset tokens in the pool varies every time a trade is made.
MOVING FORWARD
The goal of Comdex was to create an ecosystem of solutions that would connect commodity assets to users in a seamless manner. Comdex’s goal is to give on-chain access to commodities assets with intrinsic and demonstrable value to our users.
The goal of Comdex is to break down barriers and limitations in order to improve financial access and inclusion. Crypto investors in the Cosmos ecosystem can now widen their investing horizons by accessing a spectrum of synthetic assets that aim for uncorrelated returns in anti-inflationary assets that give intrinsic value, thanks to the launch of the USCX, Comdex’s own interoperable stablecoin.
The USCX token is expected to become the lifeblood of the Comdex and Cosmos ecosystems, allowing for frictionless money transactions and assisting Comdex in becoming a successful Cosmos DeFi hub, according to the Comdex team.
We intend to give information on a variety of commodity and trade finance debt instruments to consumers and investors through our larger vision. Our two primary products will provide the chain with a diverse selection of assets, each with its own set of returns and risks.
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