The new automated market-making protocol ” CoFiX ” announced that it has received a total of US$500,000 in funding from Huobi DeFi Labs under Huobi Group, crypto venture capital firm Dragonfly Capital, Coinbase Ventures, and multiple angel investors in the decentralized financial sector.
CoFiX also announced that it will launch a new AMM trading platform , and will also launch liquidity mining and transaction mining plans.
CoFiX stated that the US$500,000 financial support from the world’s first-tier investment institutions will be used to cover the early development costs and contract audit expenses of the project.
This will be a brand new attempt in the AMM track, trying to solve the pain points of the existing automated market making agreements on the market. As decentralized finance continues to grow at an exponential rate, users are beginning to look for DeFi trading platforms that can provide better risk control and better prices. However, DeFi’s existing automated market maker solutions cannot meet these needs, making it impossible for institutional market makers to perform effective risk calculations and accurate risk pricing.
Lianwen was the first to introduce the design concept of “CoFiX”, a brand-new product that was only hotly discussed in the small circles of large cryptocurrency market makers and leading crypto venture capitalists at the time- this new automated market making protocol attempts to reduce the volatility The goal of introducing AMM is to bring institutional market makers into the DeFi field.
Made entirely community-driven project CoFiX DeFi “computable financial (Computable Finance)” concept, designed a new automated market-making agreement can be achieved so that traders and market makers in the case of accurate risk pricing extremely efficient Participate in the DeFi market to solve the pain points of various existing AMM trading platforms.
CoFiX obtains market prices from NEST , a decentralized price oracle machine . NEST is a decentralized price oracle protocol designed based on financial arbitrage. It achieves effective price verification through innovative mechanism designs such as two-way options, price chains and beta coefficients, so that the oracle can provide a verification for each block The whole process of the price without arbitrage opportunities on the past chain takes place on the chain. In this way, in CoFiX, the risks related to transactions and asset pricing can be quantified, which can automatically provide market makers and traders with more effective prices and better risk control solutions.
In contrast, the existing automated market maker trading platforms require arbitrageurs to participate in price discovery and balance the proportion of capital pools, while both traders and market makers have to bear the costs of arbitrageurs. Through the risk pricing model, CoFiX enables market makers and traders to efficiently conclude transactions without involving arbitrageurs. This means that traders can get better prices, and market makers can get more, sustained and stable profits.
“CoFiX has opened up a new path for DeFi through innovative solutions, which can truly attract institutional traders and market makers to enter the DeFi market and push the DeFi world into a new chapter in computable finance. Huobi DeFi Labs is very pleased to support the team and Help develop the CoFiX community.” said Sharlyn Wu , Huobi’s chief investment officer and head of Huobi DeFi Labs.
Sharlyn Wu, Chief Investment Officer of Huobi Group, previously pointed out that the next step of DeFi development requires a breakthrough from ” casino to Wall Street “. “The first principle of financial product design is that transactions need to be priced at market prices . Otherwise, the product may be Speculators continue to arbitrage; without proper risk management measures, there will be no rational market participants to participate.” “Only reasonable chain pricing, professional financial products and solid risk management can lay a good foundation for DeFi 2.0 basis.”
“When I saw CoFiX’s improvements in AMM design, I was very excited,” said Haseeb Qureshi , managing partner of Dragonfly Capital. “Many DeFi agreements are based on existing ideas to further advance them. CoFiX is a very good innovation on top of traditional AMM. This is also one of the real community-centric DeFi projects from the East. 1. We are happy to help them join the global DeFi community.”
“CoFiX is a community-driven DeFi project. It was established in March of this year. The founding community members include the decentralized wallet development team AlphaWallet, the blockchain security team Aby Lab, the financial product design expert and the CoFiX white paper author Zaugust, and other 11 Individual members.” said AlphaWallet founder Victor Zhang . “We are very excited to have the opportunity to work with financial model researchers, contract developers and many volunteers in the community to realize the concept of “computable finance” proposed by the CoFiX agreement, launch the first-generation product, and pass the contract audit . “
Victor Zhang introduced to Lianwen that all CoFiX contracts have passed the security audit of the blockchain security company Certik . The product is scheduled to go online before mid-October, and the liquidity mining and transaction mining plan will be launched. CoFiX will issue tokens CoFi and distribute 90% of COFI tokens to users through liquidity mining and transaction mining plans.
