Decentralized alternate CoFiX, which goals to supply extra correct and more cost effective buying and selling with a brand new oracle answer, has r
Decentralized alternate CoFiX, which goals to supply extra correct and more cost effective buying and selling with a brand new oracle answer, has raised half 1,000,000 {dollars} from a number of crypto traders together with Huobi’s DeFi Labs, Dragonfly Capital and Coinbase Ventures.
Many current decentralized finance (DeFi) platforms similar to UniSwap and Compound use oracles that fetch exterior information from centralized exchanges and different DEXs to offer worth feeds on-chain.
This course of can create a deviation between oracle worth and the precise market worth, the place arbitrage buying and selling happens throughout worth discovery and liquidity pool rebalancing. Merchants and market makers will bear the arbitrage price.
Nonetheless, CoFiX claims to have higher token worth feeds primarily based on a pricing mechanism derived from a decentralized worth oracle referred to as NEST and the DEX’s patented risk-assessment mannequin.
In NEST Protocol, miners obtain NEST token rewards by paying commissions and offering worth quotations, whereas verifiers revenue from the distinction between miners’ quotations and market worth. Thus, CoFiX stated, the protocol can have a set of economic parameters to confirm costs and generate arbitrage-free worth feeds.
CoFiX may also think about different worth dangers similar to time by way of a mathematical mannequin. Particularly, it receives a market worth “P” from NEST and elements a danger coefficient “Ok” into P to account for time delay and volatility. The platform then produces a brand new reference worth that merchants and market makers confer with when making transactions.
“CoFiX is trailblazing a brand new path in DeFi with an revolutionary answer that may actually entice institutional merchants and market makers to the house,” stated chief funding officer Sharlyn Wu. “It leads DeFi into a brand new chapter of ‘Computable Finance.’”
Based in March, the event staff behind CoFiX embrace builders from DeFi venture AlphaWallet and blockchain safety staff SECBIT, in response to AlphaWallet founder Victor Zhang.
The brand new funding will probably be used to cowl the prices of protocol auditing and early improvement.
CoFiX’s official launch is slated for early October and there may also be a liquidity mining program to distribute 90% of its $COFI tokens to customers, in response to the agency.