Cryptocurrencies

CoFiX, a competitor to Uniswap, aided by Coinbase Ventures, Dragonfly Personal-Financial.com and Huobi – Cryptocurrencies

Another contender for the throne of Uniswap (UNI) in DeFi. Uniswap finally took advantage of SushiSwap, we’ll see if CoFiX will do the same. CoFix would have a little more compared to Uniswap; the project is funded to the tune of half a million dollars from 3 centralized exchanges.


$ 500,000 for the new and improved Uniswap

The rise of DeFi has been accompanied by an increase in the number of decentralized exchanges (DEX), the most popular of which are currently Uniswap, Curve (CRV) and Swing (BALL).

DEXs work through liquidity pools provided by users receiving remuneration in return.

Centralized exchanges, on the other hand, strive not to be left behind. Several of them are embarking on DeFi, by creating their own protocols or by investing in new projects.

Coinbase Ventures, Dragonfly Personal-Financial.com and Huobi recently contributed to the financing of CoFix for an amount of 500,000 USD.

The operation of CoFix would be similar to that ofUniswap but, would have some improvements in the collection of on-chain price flows.

NEST: the next oracle

Professional traders believe thatUniswap is unsuitable for advanced transactions : its price display system works with an oracle that creates a gap between the actual market price and the price available on the oracle.

Of arbitration costs its necessary during rebalancing of the liquidity pool and it is often the traders’ responsibility to bear these costs.

CoFiX would have been designed to eliminate these often high fees: the platform has a decentralized pricing oracle called NEST and a risk assessment model.

NEST allows miners to receive tokens by providing price quotes, while verifiers take advantage of differences between quotes and market prices.

In this way, CoFiX allows you to have parameters that generate price flows without arbitrage. CoFiX should be available from October 9, 2020.

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Will CoFiX be more credible than the Uniswap clones? Will NEST really deliver on its promises and allow CoFix to gain an advantage over Uniswap? It is generally difficult to take the place of the first comers, who have had time to use and gain the trust of many users. CoFiX also comes at a time when DeFi tokens are seeing their price collapse. Too soon or late for a launch on a good basis: the strategist must be a master of time.

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