When crypto decentralized networks are in a bid to fulfil their goals, there is a strong need for transparency and upheld ethics. However, even while trying to keep up with being transparent and ethical, it is usually possible to find allegations against any of such networks.
As for the Comdex network, it has always been their goal to achieve democracy in finance, and things have been going well and according to as planned. However, in the past few days past, a tweet posted by the social media personality, Rarma, has been spreading false information from research.
The tweet alleges that Comdex is involved in a technique known as wash trading, to the detriment of the market, and that some fundings are acquired by Comdex from the network itself while selling its foundation tokens with inflated trading volume.
Comdex has reached out to clamp down on the misinterpreted information. There is proof that the network is not involved with wash trading for profits, but deals with the strategy of market making. But what are these terms all about?
Wash trading in the crypto universe is a form of money laundering. Here, investors simultaneously trade the same assets to create a fake activity within the blockchain.
Meanwhile, market making involves the provision of liquidity for a cryptocurrency by submitting both bid and ask limit orders on a blockchain, and spreading them over multiple trades, via speedy and stable blockchain technology, coupled with the ability of a crypto network to take properly manage their risks, especially through third party services.
It is a transparent system, unlike wash trading for profits; and the Comdex network makes no gain from the profits of the transactions.
Proposal 152 Passed
Weeks ago, a proposal was passed in the Osmosis Zone, the organization in which Comdex’s OSMO/CMDX liquidity staking pool is stationed. The goal of the proposal was to reduce the impact of manipulating trade volumes in the Osmosis Zone.
The Osmosis network determines amounts of how much funds they can grant in pools, based on the swapping fees which these pools generate, so as to provide them with liquidity.
Hence, systematic wash trading is an illegal act in the Zone, as the Osmosis network does not allow forging figures or market manipulation. Proposal #152 was categorized into three parts, which are now in effect.
Wash trading is now deemed an unethical system, and is now penal in forms which include, but are not restricted to:
The complete elimination of reward distribution in pools.
Automatic completion of unbonding periods for those staking in the pools.
Limitations on the swap fee in the guilty pool.
Restrictions on the annual percentage yields (APYs) of the pool.
The usage of a transparent Master Incentive scheme, to prevent pools from incentivizing falsely.
The outcomes were that 7,672 users voted in support of the proposal, while 628 were against it. 89 users voted no with veto, and 3,491 voted neutrally. 45 validators (those who confirm the validity of transactions) took part in the voting process, with 18 being in support, two against the proposal, and 25 being neutral about it. Ninety did not vote.
Effects of the Proposal
Ever since the passing of the Proposal in the Osmosis Zone, the possibility of wash trading in the staking pools and markets has been reduced to a minute level. The Comdex network was launched in 2018 and has been evolving ever since, not via speedy market manipulations.
The $CMDX token was launched with a liquidity bootstrapping pool on Osmosis Zone, years after the network was formed.
The CEO of Comdex made it clear on his Twitter account that the network has never held a funding round to sell its foundation tokens amongst itself.
According to the tokenomics of the Comdex network, the founding team has not received tokens to be assigned to them by December this year, and audits are being carried out.
The Brighter Notes
While audits are being carried out by the Cosmos ecosystem in its infrastructure layer, which is Comdex, let us take a look at how the network has been positively impacting the decentralized finances of its members worldwide.
The Comdex Web App.
The Comdex Academy.
The upcoming launch of the Commodo Bank, for loans within Cosmos.
Introduction of Composite token, as a stablecoin, to aid the bridging of traditional (CeFi) and decentralized finance (DeFi). Known as $CMST.
The HARBOR protocol is to aid the $CMDX token in financing $CMST.
Introduction of synthetic cAssets, in which you can convert your assets into physical to digital assets.
Comdex is building an ecosystem of solutions that work synergistically to aggregate liquidity from DeFi ecosystems and facilitate its flow into CeFi. Whether through the enterprise trade platform & the tokenization of real-world assets through access to the price fluctuation of various assets via Synthetics, as a Defi infrastructure layer, the Comdex ecosystem promises to facilitate an all-in-one hub to democratize finance.
Find out more and keep up with the latest news and developments via the following links: