Decentralized finance is revolutionizing our exchanges a little more every day. While stocks and real estate can now take the form of tokens thanks to the Mirror and RealT protocols, there was still an entire class of assets to be tokenized.
COMDEX (Commodities Dex) brings the simplicity and fluidity of the Cosmos ecosystem and makes it possible to acquire commodities through its decentralized exchange platform.
All about Comdex (CMDX)
- The commodity market: a market of more than 20 trillion dollars
- COMDEX wants to solve the problems of centralized finance in the commodity market
- COMDEX makes it possible to create synthetic active ingredients
- CSWAP: an MA for raw materials
- Team Information
- Roadmap Information
- The CMDX token
The commodity market: a market of more than 20 trillion dollars
Commodities are unprocessed physical goods that come from mining (precious and industrial metals), drilling (oil or gas) or agriculture (corn, cotton, wheat).
Changes in raw material production costs can have a strong impact on other sectors. For example, a fall in the production of metals (such as copper, nickel or zinc) can impact the automotive, aeronautical or construction industries.
For investors, they represent three advantages:
- Hedge against inflation
- Track industrial growth
- Diversify your portfolio
Commodities are less volatile than cryptocurrencies. They also have a low correlation with stocks and bonds. Holding commodities therefore makes it possible to improve the return/risk ratio of one’s portfolio.
COMDEX wants to solve the problems of centralized finance in the commodity market
COMDEX is a layer 1 blockchain built on the Tendermint protocol and part of the Cosmos ecosystem . Its platform aims to facilitate the trading of commodity assets. It tries to solve four problems of the traditional market.
- Lack of accessibility : restrictions and regulation prevent some investors from exposing themselves to this market
- Logistics costs : These costs can be significant and put off investors
- The short lifespan of certain raw materials: agricultural products are perishable
- The lack of transparency of certain markets
COMDEX makes it possible to create synthetic active ingredients
To solve these problems COMDEX created synthetic raw materials . These digital assets track real commodity prices. Thanks to its protocol, COMDEX users access raw materials without having the complexity of the traditional market. In addition, logistics and storage costs disappear.
These synthetic assets are called cAssets (for Comdex Assets ). At launch, three cAssets will be created. cGold will represent synthetic gold, cSilver for synthetic silver and cOil for synthetic oil.
The process of creating cAssets will be carried out using CDPs (Collaterized Debt Positions). Thus tokens from the Cosmos ecosystem (Atom, Xprt, Akt, Dvpn and Cmdx) will be pledged and will allow the cAssets to be created.
The value of the collateral must always remain greater than the value of the cAsset created. The minimum ratio between the collateral tokens and the cAsset must not be less than 1.5. If this ratio decreases, the CDP is liquidated . The guarantee tokens will then make it possible to redeem the cAssets.
To avoid liquidations, COMDEX will offer a stable coin from the third quarter of 2022: the USCX. It will follow the rate of the dollar and will avoid major fluctuations.
CSWAP: an MA for raw materials
COMDEX also offers an Automated Market Maker : the CSWAP . This MA facilitates the exchange of assets without the need for a centralized unit or order books.
Once cAssets have been created, platform users and cAsset holders can create liquidity pools. In return, they get rewards in CMDX, the native token of COMDEX.
cAssets will also have the advantage of being interoperable with other protocols in the Cosmos ecosystem. It could well be possible, eventually, to trade cAssets (e.g. cGold) on DEXs like Osmosis.
COMDEX was founded in 2018 by Abhishek Singh (former partner at Sapient) and Siddarth Patil (formerly associate at EY). Their team is made up of experienced developers, including Dheeraj Dubey , their technical director (formerly an associate for Deloitte).
COMDEX also relies on external talents such as Evan Winter (manager of Trade Credit Management), Tushar Aggarwal (the founder and CEO of Persistence) and Marcus Maute (President of Bridgetower Capital)
2021 has been a successful year for COMDEX. This was the year of the launch of its native token, the CMDX (November 2021) and the creation of their first liquidity pools on the DEX Osmosis (December 2021).
In 2022 COMDEX is accelerating and presenting an ambitious roadmap . Thus the official launch of its exchange platform is scheduled for the second quarter of 2022. The team will also build a bridge with ETH which will make these cAssets compatible with other DeFi protocols.
With its “Entreprise trading hub” solution , COMDEX also wishes to strengthen its position on the professional market . Besides, the stablecoin USCX will be launched in the third quarter of 2022 . The USCX will be interoperable and will become the second stable corner of the Cosmos ecosystem after the UST. It will also stabilize the CDPs.
Finally, COMDEX will launch ShipFi, a decentralized application that will make it possible to digitize new asset classes using NFT technology. The Dapp will have its own Ship token. This token will have a governance role and will pay gas fees on the Dapp. An Airdrop is also planned for CMDX holders.
The CMDX token
The CMDX, the native token of the COMDEX protocol has several uses:
- Participate in governance decisions. Holders will be able to vote to modify key parameters such as the percentage of fees charged on transactions, but above all the creation of new cAssets.
- Pay transaction fees . CMDX tokens will pay for gas fees. These fees are collected to reward validators and prevent attacks.
- Reward liquidity providers and delegators. Rewards from liquidity pools will be paid out in CMDX. It is currently possible to stake these CMDXs with 4 validators (Unagii, Omniflix, Cosmostation and Ezstaking)
- Maintain the stability of the cAssets : the CMDXs will be linked by an algorithm to the cAssets and will ensure the balance of the different assets.
An initial inflation of 30% is set for the first year, then inflation will be 25% for the following three years . The maximum circulating supply will reach 200 million CMDX tokens.
The allocation of tokens will be carried out as follows:
– 12.5% for Airdrops. A portion of these airdrops were awarded to XPRT (Persistence) holders
– 12.5% to encourage developers to create decentralized applications on the COMDEX blockchain
– 25% to reward liquidity providers
– 25% will create a cash reserve and will be used to maintain operations on the protocol
– 25% for the team and advisers . These tokens will be distributed monthly over a period of 3 years and unlockable only after the first year
As of May 1, 2022, the token is trading at a price of 0.81 USD (i.e. 0.77 Eur). Its ATH had been reached on January 7, 2022 for a unit price of 6.02 USD (i.e. ~ 5.28 Eur (at the EUR/USD price of Jan. 07)). The market capitalization reached 20 million euros on May 1, 2022.
Thanks to its synthetic assets representing raw materials, COMDEX makes it possible to diversify its investments . Its protocol eliminates entry barriers, eliminates logistics costs and guarantees transparency .
COMDEX makes it possible to broaden one’s investment horizons and to hedge against inflation with uncorrelated assets.
If there are other projects with the same ambition such as PaxGold or Aurus, COMDEX cAssets benefit from the interoperability of the Cosmos ecosystem and the future bridge linking them to Ethereum (Eth).
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