
CoFiX
Efficient token swap app allows to trade tokens with the smallest spread and get rewarded with ETH dividends.
Date | Investors | Amount | Round |
---|---|---|---|
$500k | Seed | ||
Total Funding | 000k |
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CoFiX operates as a decentralized exchange (DEX) protocol within the decentralized finance (DeFi) sector, built on the Ethereum network. The platform was introduced around October 2020, following seven months of research and development. CoFiX's primary function is to offer a system for trading crypto assets that addresses inherent risks found in typical automated market maker (AMM) models.
The core of CoFiX's architecture is its reliance on the NEST oracle, a decentralized price feed mechanism. This integration allows the protocol to source reliable, market-based price data, which is crucial for managing risk for both traders and liquidity providers. By using what it terms a "Computable Finance" (CoFi) model, the protocol aims to quantify and manage risks through algorithms, creating a more predictable and automated financial system. This approach allows market makers to effectively hedge against market forces while offering fair prices to traders.
The business model centers on transaction-based revenue and token governance. Users who trade on the platform incur fees, including a standard fee for calling the NEST oracle and other costs related to price volatility and transaction size. A significant portion of revenue is distributed as dividends to holders of the native COFI token. The COFI token also serves as a governance tool, granting holders voting rights on the protocol's future development and operational parameters. Revenue is generated through liquidity and trading mining, where users are rewarded with COFI tokens for participating on the platform.
CoFiX serves crypto traders and liquidity providers seeking a decentralized trading environment with managed risk. Its key features include a risk management module that adjusts trading fees based on market volatility to protect liquidity providers from impermanent loss. The platform facilitates swaps for token pairs like USDT-ETH and HBTC-ETH, for which the NEST protocol provides stable price feeds. For traders, the system is designed to minimize price slippage and impact from large volume trades, offering a KYC-free experience.
Keywords: decentralized exchange, DEX, DeFi, NEST oracle, computable finance, automated market maker, AMM, liquidity provider, crypto trading, COFI token, governance token, risk management, price oracle, Ethereum, decentralized finance, blockchain, trading protocol, liquidity mining, crypto assets, token swap