Cosmos is a fast-rising Ethereum competitor, and is building the DeFi infrastructure layer for its growing ecosystem. Decentralized finance (DeFi) is defining the future of finance. While the space is experiencing a lull after the mania of 2020, Comdex is leveraging this opportunity to focus on building the foundation of the DeFi.
Comdex was born to address the problems in the current centralized finance world and revolutionize the commodities trade industry. But, over time, the project has found its product-market fit as a DeFi infrastructure provider for the multi-chain future. Comdex aims to deliver a robust infrastructure layer that supports the seamless creation and deployment of DeFi applications in the Cosmos ecosystem.
At the same time, it aims to enhance investors’ access to a broad range of assets that help them diversify and generate yield on their investments. Comdex will provide a variety of interoperable plug & play modules for projects to create their DeFi platforms to offer utility to the Cosmos community and DeFi users worldwide.
As part of its roadmap and bringing more value to the community, the Comdex chain is expanding its ecosystem fast. It has processed more than 590,000 transactions and over 35,000 wallets already interacting on the chain. More than five projects have started building on the Comdex chain, while there were 50k+ participants on the cAsset app that was live on devnet. These numbers show the success of Comdex’s solutions.
Comdex is leveraging DeFi to provide investors with access to an extensive range of asset classes. However, this requires bridges, especially with the crypto world going multi-chain. This is why Comdex is focusing on Cosmos, which addresses this issue with its IBC (inter-blockchain communication) protocol.
By leveraging IBC, the decentralized synthetics protocol will allow users to access a range of inflation-resistant synthetic assets. The Comdex chain utilizes a DEX, an AMM-based exchange, to facilitate the swapping of Comdex ecosystem assets with other IBC-enabled assets. A peer-to-peer exchange meanwhile enables the creation of P2P marketplaces to exchange assets in the Comdex ecosystem.
The Comdex chain further uses the CDP (collateralized debt position) module to create open access to finance by enabling the creation of debt assets through collateralization of IBC-enabled assets.
Meanwhile, its asset tokenization module focuses on tokenizing real-world assets as on-chain NFTs to provide the physical assets with security, immutability, provenance, decentralization, and disintermediation. The idea is to open up new avenues of ownership. Builders can plug & play these customizable Comdex modules to deliver bleeding edge dApps to the masses.
The Comdex Ecosystem
Besides cAsset and an enterprise trade platform, the Comdex team works on several new developments, such as Commodo, ShipFi, and stablecoin $CMST, which will be launched soon.
Enterprise trading is a B2B application built to tokenize real-world commodity assets and facilitate instant trade, settlements, and financing to provide its Enterprise users with readily accessible liquidity to meet their demands. This platform has already processed about $160M in trade volumes, on-boarding over 18 organizations from the Southeast Asia region.
As for cAsset, it is the application of a synthetic that enables the creation and exchange of synthetic assets using IBC-enabled assets as collateral. Once users have their synthetic assets, they can start using them to earn yields. Recently, the team had a live demonstration of cAsset, which gave the community a first look at its “groundbreaking” synthetics platform.
Meanwhile, the IBC-native collateralized lending/borrowing app on Comdex is called Commodo. This dApp will allow users in the Cosmos ecosystem to utilize their capital more efficiently. It will further integrate with the other apps like the synthetics exchange to enhance the cAsset user experience.
Through ShipFi, Comdex aims to enter the world of NFTs by digitizing and exchanging ownership of commodity trade finance debt. This platform will utilize the SHIP token.
There is also an IBC-enabled and over-collateralized stablecoin $CMST in the works, native to the Comdex ecosystem. With stablecoins seeing widespread adoption and becoming an integral part of crypto and Defi, this is a smart move from Comdex.
According to the Comdex team, as the ecosystem grows and thrives, it will inevitably lead to the formation of a multi-token economy with the various digital assets interacting as they serve their dApps to provide additional value for the whole ecosystem.
The CMDX Token
The native token CMDX has several functions in Comdex’s staking economy. First, a CMDX token holder helps secure the protocol by locking their coins for a given period, a process called staking.
As a utility token, CMDX is used to pay fees for utilizing modules on the Comdex chain. Then comes its role as a governance token. It grants CMDX holders rights to participate in its governance and drive critical decisions for the protocol, such as fees, whitelisting of synthetic, and collaterals that can be used on the platform.
Comdex synthetics app users can further collateralize their CMDX holdings to create and trade synthetic cAssets on Comdex. Additionally, the $CMDX token accrues value from the premium difference between the lending and borrowing rates, and the premium difference would be used to buy back the $CMDX token.
The total supply of CMDX tokens is capped at 200 million, out of which 26.6 million are currently circulating in the market.
The protocol rewards CMDX holders for providing liquidity and other participants for performing critical functions in the network.