Comdex is developing the DeFi infrastructure layer for Cosmos, a rapidly growing Ethereum alternative. It came into being as a response to the current centralized financial system’s inefficiencies and an attempt to completely revamp the commodities trade market.
However, as a DeFi infrastructure provider for the future of multiple chains, the project has found its product-market fit over time. The product that Comdex wants to create is a solid infrastructure layer that makes it easy to build and distribute DeFi applications within the Cosmos ecosystem.
It’s also intended to make it easier for people to gain exposure to a wide variety of investment opportunities that can help them spread their risk and boost their returns.
When building their DeFi platforms, projects can use Comdex’s wide range of plug-and-play modules that can work with other systems. This will offer utility to DeFi users and the Cosmos community everywhere.
This article explores how Comdex facilitates the development of interoperable DeFi solutions.
What is Comdex?
Comdex is a synthetic asset protocol that enables access to a vast array of commodity debt assets and liquidity, thereby facilitating the effortless movement of funds from DeFi to CeFi.
Comdex’s goal is to make finance more accessible to the general public, and the protocol is an integral part of that effort. This is because investors can now create digital versions of a wide range of assets that can be traded. This gives them access to the world’s financial markets.
Based on the interoperability principles of the Cosmos Ecosystem’s design, the Comdex ecosystem of solutions can pool funds from various DeFi systems and direct them into the CeFi system (centralized finance).
The mission and vision of Comdex can be achieved by making synthetic assets, which act as a bridge between existing crypto ecosystems and financial instrument markets.
How Does Comdex Work?
Comdex is using DeFi to expand the types of assets available to investors. However, bridges are needed for this to happen, especially now that multi-chain crypto is the norm. This is why Cosmos’ IBC (inter-blockchain communication) protocol solves this problem, which is why Comdex is investing heavily in it.
Users of the decentralized synthetics protocol will have access to a variety of synthetic assets that are immune to inflation thanks to the use of IBC. To facilitate the trading of Comdex ecosystem assets with other IBC-enabled assets, the Comdex chain employs a DEX, an AMM-based exchange. Meanwhile, P2P exchanges make it possible for users of the Comdex ecosystem to set up their marketplaces for trading digital assets amongst each other.
The collateralized debt position (CDP) module of the Comdex chain makes it easy to get financing by letting IBC-enabled assets be used as collateral to create debt assets.
Tokenizing physical assets as on-chain NFTs with the added benefits of security, immutability, provenance, decentralization, and disintermediation is the main focus of its asset tokenization module.
It’s an attempt to broaden people’s options for ownership. Developers only need to plug and play these flexible Comdex modules to make cutting-edge dApps for everyone.
What are Synthetic Assets?
Synthetic assets are tokenized derivatives. Derivatives are proxies for stocks or bonds that a trader does not own but is interested in purchasing or selling. In layman’s terms, a derivative is a financial instrument that allows one to profit from the rise and fall in the value of an underlying asset without actually owning the asset itself.
Taking this a step further, the record of the derivative is then put on the blockchain. This creates a digital token for the synthetic asset, also called a “tokenized derivative.”
Synthetics, which can be traded on Comdex, are tokenized derivatives that allow investors to gain leverage against the fluctuating value of underlying real-world assets. Synthetics enable investors to provide liquidity, borrow, and speculate on multiple asset classes. Comdex can assist SMEs in obtaining trade finance.
Significance of Interoperability to the DeFi Industry
Customizable DeFi Solutions
Interoperability is essential to build innovative DeFi instruments and platforms, which are impossible to implement using the current financial infrastructure.
Many industry experts believe that by enabling secure and reliable data exchange between private and public networks, interoperable smart contracts will significantly boost the financial sector.
Interoperable DeFi solutions could make it possible to use multiple tokens and wallet systems in the future. This would be a massive improvement for crypto users.
A System With a Less Centralized Ecosystem
The ability to establish network interoperability across multiple DeFi services is even fulfillment of the sector’s promise to decentralize systems and economies. This is a top priority for many DeFi projects.
In the future, thousands of separate DeFi services would be able to “talk to each other” through a decentralized network hub. This would eliminate the need for a central point of control overseeing the entire financial transactions.
Enhanced Collaboration Between Industries
While DeFi has a wide range of applications, its main strengths lie in the areas of data transparency and verifiability, the execution of smart contracts, and the establishment of decentralized consensus.
When DeFi solutions from different companies and sectors can communicate with one another, data and value can flow more freely between markets and business applications that were once thought to be unrelated.
Suppose businesses that normally wouldn’t interact did so, they could share knowledge, build off each other’s expertise, and foster a culture of innovation with much less effort and friction.
The groundbreaking new synthetics app, cAsset, allows users to create synthetic assets that track the price movements of underlying assets like commodities and cryptocurrencies. Users can then use their synthetic assets to generate returns.
By using NFTs as collateral for real-world assets, this dApp hopes to make it easier to set up CeFi financing.
Commodo is a native Comdex chain dApp that uses the $CMDO native token to facilitate lending and borrowing within the Cosmos ecosystem. This dApp’s ability to interact with and use other apps, like the synthetics exchange, will make it better for cAsset users.
Using digital assets as collateral, this platform will provide its enterprise users with easy access to capital to meet their needs promptly.
CMDX, Comdex’s native token, will be a vital part of the firm’s plan to build a financial services ecosystem that everyone can use.
The total number of CMDX tokens will never be more than 200,000,000. The inflation rate for the first year will be 30%, and it will go down by 25% each year after that.
Step 1: Download the Cosmostation Wallet
Cosmostation appears to be the most integrated of the crypto wallet options available on the Cosmos network. Google Chrome and the Wallet Chrome extension are available for desktop users. The user can get the wallet from the Google Play Store or the Apple App Store if it is compatible with their mobile device.
Step 2: Set Up the Cosmostation
Follow the instructions provided by the Google Chrome extension of the wallet or the mobile app that was installed in Step 1 to register and set up the wallet. Keep the seed phrase and wallet address in a safe place. These will be needed in steps 4 and 6.
Step 3: Buy Cosmos as the Base Currency
The user can buy Cosmos from Binance by going to the Buy & Sell Crypto page.
Step 4: Transfer Cosmos from Binance to the Wallet
After buying some Cosmos, it can be found in the “Wallets” section of the user’s Binance account. Simply fill out the withdrawal form after clicking the appropriate button. Then Cosmos must be selected as the network, and then the wallet address and the desired amount must be entered. The next thing to do is to click the withdraw button and wait for the Cosmos to reflect in the Cosmostation.
Step 5: Choose a DEX
Several DEXs exist, but before committing to one, it is essential to verify that it supports the wallet chosen in Step 2. If the wallet the user wants is Cosmostation, the user can make the transaction on Osmosis.
Step 6: Connect the Wallet
Use the address obtained in Step 2 to link the Cosmostation wallet to the desired DEX.
Step 7: Trade Cosmos
Choose Cosmo as the means of payment and choose Comdex as the coin that will be purchased.
Step 8: Find Comdex Smart Contract If it Does Not Appear
If the coin that will be acquired isn’t listed on the DEX, the smart contract address can be found at https://www.mintscan.io/cosmos. Afterward, the user can simply paste it into Osmosis.
Step 9: Swap
Click the swap button after executing the previous steps.
- The Comdex chain represents the DeFi infrastructure layer for the Cosmos ecosystem. This means that the Cosmos community and DeFi users all over the world can take advantage of Comdex’s wide range of interoperable plug-and-play modules, which projects can use to build their DeFi platforms.
- The Comdex chain is rapidly growing its ecosystem to fulfill its strategic plan and benefit the overall community. Over 590,000 transactions have been confirmed, and more than 35,000 wallets are communicating with one another on the chain.
- More than five projects have begun development on the Comdex chain, and the cAsset app is live and has over 50,000 users. These figures show the efficacy of Comdex’s solutions.
- As the ecosystem keeps growing and thriving, it will help build a multi-token economy in which tokens from different platforms work together as they deploy their dApps to make the entire ecosystem more valuable.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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