DeFi as a sector of Web3 has been essential in bolstering the transparency, privacy, and security prospects of Web3. The growth of Decentralized Finance (DeFi) brought about several financial applications and services to Web3.
These dApps take on the structure of subsectors in traditional finance, but in decentralized versions, which include:
- Borrowing and Lending
- Global payments.
Web3, as well as DeFi was originally pioneered with the introduction of the Ethereum blockchain, a blockchain that enabled the use of smart contracts.
But Ethereum had one major problem — the high cost of transactions and this led to the origination of other blockchains for a more scalable and adoptive DeFi industry. Cosmos blockchain is one of these blockchains founded in 2014.
Introducing Cosmos — the Internet of Blockchains
The Cosmos ecosystem comprises a decentralized network of independent, parallel blockchains that are connected through the Cosmos Hub, acting as a hub for interconnected blockchain networks and using a consensus mechanism called Tendermint.
Tendermint is a variant of the Practical Byzantine Fault Tolerance (PBFT) algorithm and facilitates high-throughput and low-latency transactions. This allows for fast and efficient block confirmations, making the Cosmos ecosystem suitable for the development of high-performance decentralized applications.
Although Cosmos has existed since 2014, its DeFi sector still needs to be developed more. To increase the DeFi presence of Cosmos and empower the internet of blockchains to secure more authoritative positions in Web3, more DeFi applications are required in the Cosmos ecosystem.
Comdex — the IBC-enabled DeFi Infrastructure Layer of Cosmos
Comdex is a decentralized finance (DeFi) hub on the Cosmos ecosystem, focused on bridging the gap between traditional/centralized finance and DeFi and democratizing finance.
Built on Cosmos SDK and making use of interoperable smart contracts through CosmWasm, Comdex is committed to building an interoperable ecosystem of bleeding-edge DeFi applications and solutions for Cosmos.
Comdex provides 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 DeFi to all Cosmos users.
In essence, this will attract more DeFi users and volume to Cosmos, thereby boosting its DeFi position in the crypto industry.
Comdex DeFi Solutions
As the DeFi infrastructural layer of Cosmos, Cosmos offers the following DeFi services to the Cosmos and IBC ecosystem:
1. cSwap DEX
cSwap is an IBC-enabled hybrid decentralized exchange (DEX) built on Comdex using the Cosmos SDK. The DEX makes use of AMM liquidity pools to provide DeFi with cross-chain markets and limit orders.
The DEX does not only used to perform regular swapping of assets. cSwap is a perfect platform that offers the best opportunities for users, traders, and arbitrageurs to utilize trading tools and perform sophisticated trading strategies.
2. Composite Money — $CMST stablecoin
Built on Cosmos, $CMST will have a stable purchasing power across all Cosmos-based dApps and facilitate faster, more efficient, and cheap transactions. It will also provide an on-chain settlement layer for Comdex.
As an over-collateralized stablecoin, $CMST is fully backed by a collateral basket of IBC assets with a value greater than the amount of stablecoin minted, ultimately ensuring its solvency.
$CMST serves as a critical growth component for the Cosmos ecosystem.
3. Harbor Protocol
Harbor Protocol is a decentralized application powered by the Cosmos SDK and CosmWasm smart contracts and developed for minting $CMST.
It also enables market makers and users to capitalize on arbitrage opportunities with its StableMint feature ensuring $CMST maintains its peg in secondary markets.
Harbor Protocol uses the Locker module that enables users to lock safe listed IBC assets in Vaults and mint $CMST. Users who lock their assets in Vaults earn interest according to the parameters of the Vaults.
4. Commodo Finance
Commodo Finance is an IBC-native lending and borrowing platform that provides decentralized, efficient, and secure money markets by utilizing the Lend module mechanism which exists exclusively on the Comdex chain.
The Commodo platform aids users — depositors — to be able to lend digital assets and receive yields on them and also gives borrowers a platform to borrow whitelisted assets by keeping their lent assets as collateral.
5. Enterprise Trading
The Enterprise Trading platform is the Business to Business (B2B) protocol of Comdex built to tokenize real-world assets and facilitate instant trades of these assets, settlements, and financing.
It will enable and facilitate users to carry out instant cross-border trading of real word commodities through the creation and exchange of derivatives that represent the value of these real-world assets.
ShipFi is the bridge between DeFi and CeFi for Comdex and is the foundational layer of its next steps into exploring more ways to democratize finance for its users.
This platform 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.
The DeFi solutions Comdex is providing on Cosmos will make Comdex and Cosmos a highly attractive ecosystem for traders, market makers, and arbitrageurs to come in and capitalize on for max profits. This, in turn, will increase Cosmos’ DeFi value. One smart move by Comdex is the DeFi infrastructural layer of Cosmos.
Comdex is a decentralized network and IBC-enabled DeFi infrastructural layer built on the Cosmos blockchain.
This network provides several interoperable plug-and-play core modules which developers can utilize to create and deliver their DeFi protocols thereby adding more utilities to the Cosmos ecosystem.
For more insights, follow the Comdex network via the following links.