Cardano is getting ready for an absolute ecosystem explosion
with more and more dApps pledging to build on its blockchain each day.
Today, we're going to discuss a project that will be instrumental in Cardano's DeFi.
I'm talking about the Currency of the Internet,
also known as COTI.
Let's get it!
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My name is Ben.
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You may have heard recently about COTI from the Cardano Foundation through cFund,
investing $500K into the fintech startup in April earlier this year.
cFund is the venture fund backed by Cardano,
Input Output Hong Kong, also known as IOHK,
and Los Angeles-based Wave Financial.
Following the investment, COTI added ADA to its payment options for its app.
Founded in 2017 with its headquarters and research and development located in Tel Aviv,
COTI is a fully encompassing finance on the blockchain ecosystem
specifically designed to meet the challenges of both centralized finance,
like fees, latency, global inclusion and risk,
as well as decentralized finance or DeFi
by introducing a new type of DAG-based protocol
and infrastructure that is scalable, fast, private, inclusive, low cost and is optimized for finance.
COTI consists of 30 employees developing their Crypto Volatility Index or CVI
as an open source decentralized product governed by its users with the GOVI token.
That's G-O-V-I.
CVI is a revolutionary and first-of-its-kind decentralized crypto volatility index
for the digital asset market.
CVI allows users to hedge themselves against market volatility and impermanent loss.
CVI is a full-scale decentralized ecosystem
that brings the sophisticated and very popular "market fear index" into the crypto market.
It's created by computing a decentralized volatility index from crypto assets option prices
together with analyzing the market’s expectation of future volatility.
The Crypto Volatility Index is a revolutionary and first-of-its-kind decentralized
crypto volatility index for the crypto market.
CVI brings a new set of tools to the DeFi space that we haven't seen before.
Users can do a lot with the CVI, and some of the features include
the ability to buy a position in the index if they believe volatility in crypto is about to grow
as a speculation or as a hedge for their portfolio,
becoming a platform liquidity provider
to earn fees whether that volatility will decrease or remain the same,
protecting your position as liquidity providers on DEXs like Uniswap against impermanent loss
caused by major fluctuations in asset price regardless of the direction.
You can also earn the GOVI token, COTI's DAO token,
on all these features for CVI.
COTI isn't only partnering with Cardano.
They also just launched a layer 2 solution integrated by Polygon, of course, formerly Matic.
Its network enables full stack scaling solutions for the CVI users.
This enables users to process transactions outside of the main Ethereum chain,
open positions, provide liquidity and stake
with the experience of reduced gas fees and faster execution.
Oh, and of course,
you know that COTI is partnered with Chainlink to build an oracle
to calculate the crypto volatility index
and to stream its data.
What a shocker.
Partnered with Chainlink.
We love Chainlink.
They're just partnered with everybody.
COTI has built a full stack that controls its entire value of its chain.
This includes infrastructure that was built on a DAG that is live since 2019,
scalable, fast, private, inclusive, low cost and is optimized for finance.
The mainnet is live since June 2019.
Services and liquidity layers like the VIPER wallet and COTI-X.
They have apps and business solutions,
payment gateways,
wallets.
They also have positive regulatory approach for licenses.
COTI is focused on payments,
but the infrastructure can do much more than just that.
Layer 2, NFT, Internet of Things, or any other strong use case
that requires infrastructure can be done on COTI's Trustchain.
Now, COTI uses the Trustchain protocol.
It's got a high throughput DAG with a new type of consensus,
PoT which stands for proof-of-trust.
COTI can handle more than 10,000 transactions per second.
On COTI, node clusters enable attaching transactions at a very fast pace
achieved by its validation process.
In addition to the COTI UPS,
which is the Universal Payment System,
it eliminates the need for third party processors,
which significantly reduces costs.
COTI solves the first issue of scalability
by connecting transactions simultaneously and synchronically using its clusters.
The MultiDAG is the first ever DAG structure
that allows token issuance on top of the DAG base Trustchain protocol.
Now, if you're unfamiliar with a DAG structure,
DAG stands for directed acyclic graph.
Now, think of this as an ERC-20
but on a DAG with all the advantages.
To understand COTI's transactions a bit better,
let's watch this short video that the team provided.
Transactions sent from the COTI wallet need a trust score
and send a request to the Trust Score Node.
Once the wallet has a trust score,
it adds it to the transaction,
and the transaction moves on to the Full Node.
The Full Node verifies the transaction and select sources to validate.
It then performs proof-of-trust,
optimizing the DAG structure and preventing spam.
The transaction is added to the DAG network.
Next, the Full Node sends the transaction to two Double Spend Prevention Nodes to prevent fraud.
Once the transaction receives a green light from the two DSP nodes,
it's sent to the entire DSP network, Trust Score network and Zero Spend Server.
A majority of DSPs determine the transaction is valid,
and it's sent to the entire network.
The transaction is validated.
After a number of validations,
the transaction's Trustchain reaches the threshold.
Once the threshold is reached,
it is known as Trustchain Consensus.
A transaction that has both DSPC and TCC is considered confirmed.
I hope you got all that.
COTI will soon be launching its COTI debit card and bank accounts for its users.
The COTI bank accounts will be accessible directly via the COTI Pay app.
By using this service,
COTI users will be able to store fiat natively in their COTI Pay wallet
and spend their fiat balance at any merchant that accepts major cards both online and in store.
If that's not enough,
those who have a COTI bank account will receive a personal IBAN number
that will enable the user to transfer funds to and from any bank account in the world.
A user can not only send and receive fiat as they would with any other traditional bank account,
but COTI will also be able to store fiat via the COTI Pay app
and convert crypto to fiat and fiat to crypto all from within the COTI app.
This could be a major solution to banking problems for those in crypto.
COTI has recently launched it staking 3.0 program.
The new and improved COTI staking program currently has 129 million COTI locked in staking
through 18 Full Nodes,
13 of them being community nodes and 8 million COTI staking capacity each.
COTI staking program is built to compete with other income models
and provides a means to generate a steady income
from the process of transaction approval on the COTI network.
According to COTI's whitepaper,
clusters will be performed by four types of nodes.
The Full Nodes,
which chooses sources for new transactions to attach to,
perform proof-of-work,
and allow new transactions to attach to the cluster.
Double Spend Prevention Nodes
These nodes maintain copies of the cluster
and monitor transactions to mitigate any possibility of double spending attacks on the network.
To run a DSP Node,
a large amount of COTI coins must be deposited into a specialized multi-signature account.
There's also Trust Score Nodes.
These are dedicated servers for calculating and storing participant trust scores
and participant KYC statuses.
To run a Trust Score Node,
a user is required to deposit a set amount of COTI.
Then we have History Nodes.
These are used to store the entire history of the cluster.
Full account history can be retrieved from the History Nodes.
COTI's staking reward model is based on the merchant's transaction volume
processed on the Trustchain,
generating fees for node operators and stakers.
If COTI continues to grow its merchant's transaction volume,
the staking program can only continue to grow as a result.
COTI has already been adopted by close to 200 merchants and big players,
such as Dafabet, Kindred Group, Unibet, Microgaming, Jet Bingo, 10bet and many others.
The monthly volume of merchant processing previously already reached over $25 million in May
and is still continuing to climb.
As I mentioned earlier,
COTI is partnered with Cardano to offer an ADA payment processing solution for merchants.
In April, the team announced the launch of ADA Pay on Cardano's Shelley Mainnet.
The ADA Pay system comes with a full suite of a payment gateway,
donations gateway and a full merchant back office.
ADA Pay is launched with the first merchant being the famous charitable organization,
Save the Children.
They said they were humbled and thankful to take part in such a noble cause
and to enable the Cardano ecosystem users to donate ADA using the ADA Pay gateway.
COTI is also partnered with Simplex and integrated Apple Pay into its app.
So what's coming in the future for COTI?
Well, they have the release of bank accounts and debit cards issued with Visa and Simplex.
They have the COTI Pay version for iOS users
and then, of course,
finalizing the MainNet 1.0 exchange integration,
which leads to a major native listing.
Then they're going to integrate the native COTI to Ledger.
This will help launch CVI version 2
including margin trading and volatility tokens integrated into the app.
And, of course, the growth of the staking 3.0 program.
If you like COTI,
they just launched an NFT game in partnership with a friend of the channel, EllioTrades' SuperFarm,
with over 2 million COTI up for grabs.
Make sure to get your piece.
In order to be eligible for the game,
you must hold at least 1000 COTI in your VIPER wallet.
The more COTI you have,
the greater your chances of winning are according to the project's Medium.
The COTI NFT game will start on June 10 and be played for four seasons,
spring, summer, winter and fall.
It's very creative seasons to pick.
Four of them.
There will also be weekly, seasonal and grand finale raffles.
The first raffle will be held on June 17.
For more information in participating in the game, you can see COTI's Medium page.
Pick up a bag of COTI on Binance, WazirX, Uniswap, Gate.io, KuCoin, to name a few.
You can also pick up a bag of GOVI, the GOVI token, on Uniswap, KuCoin and SushiSwap.
What do you think about COTI? Do you think COTI is Cardano's DeFi killer app?
Let me know down below in the comment section.
Of course, thank you to COTI for sponsoring this video.
But my team feels like this is definitely a project worth looking at.
I'll leave you guys with a tutorial for COTI's CVI platform.
That's all I got.
Be blessed.
BitBoy out.
Welcome to CVI!
The Crypto Volatility Index created by COTI.
In this guide, I will show you how to use the CVI trading platform
that enables a permissionless way to enter long and short positions on CVI
as traders or liquidity providers providing liquidity to the CVI platform pools.
First of all, let's connect the wallet to the platform
so I can show you how it's done.
Click the “connect wallet” at the top right corner of the page.
I will connect with my MetaMask wallet.
Let's take a look at the “Manage your positions” tab.
To buy the CVI index,
all you have to do is go to “Manage your positions”
in the “Buy” tab.
Select the currency you want to buy the CVI index with.
You can select between ETH and USDT.
More currencies will be added with time.
I will select ETH for the example and enter the amount I want to buy CVI index for.
Let's say 10 ETH.
Note that when you are buying a position,
you'll pay a one time purchase fee
and a funding fee which will be charged on a daily basis.
The estimated time to liquidation is the time you have left until your position is liquidated.
For example, if your current funding fee remains the same,
you have 26 days until your position is liquidated.
On the right side of the “Buy” tab,
you can check the potential position value.
You can play with a slider
and see how your position value is affected
if the CVI index changes.
For example,
if a trader bought a CVI position with 10 ETH,
at the CVI index of 60 and afterwards,
the CVI index rose up to 70,
the trader’s position value would be increased by 1.6 ETH.
Otherwise, if the CVI index falls to 50,
the trader’s position value will be reduced by 1.6 ETH.
Once you click “BUY”,
you'll see your open position here in the “My open positions” table.
You can see your position's value and the currency that you use to open a position with.
This is the P&L or profit and loss, which is calculated daily.
You will also see the current funding fee for each position,
the estimated liquidation date,
and the claimable rewards in GOVI tokens.
It is important to note that both traders who open positions on the CVI index
and liquidity providers to the platform earn GOVI tokens.
To earn GOVI tokens as a trader,
all you have to do is open a position,
and you will later see your claimable rewards in the “My open positions” table.
In order to claim them, go to “CLAIM” tab.
Select the currency and see the available reward in GOVI tokens.
Then simply click the “CLAIM” button.
The tokens will be transferred to the ETH address you are currently connected with.
To sell your position, simply go to the “SELL” tab.
Select the currency and the amount you wish to sell
and click the “SELL” button.
Note that there is a sell fee.
And here, you can see how much you will receive
if you sell your position.
You will not be able to sell your position for up to 24 hours from the buying.
Now that we've learned all about the trader’s part in the platform,
let's check out how to provide liquidity to the platform and earn premiums.
Go to “Manage your liquidity”.
In the “DEPOSIT” tab, select the currency,
insert the amount to deposit in the ETH or USDT pool,
and click “DEPOSIT”.
Once you deposit liquidity,
you receive LP tokens that earn you a share of the premiums of the pool.
Once you deposit your liquidity,
you will be able to see your share in the “My liquidity” table.
You will also see the share of the pool size and your profit and losses.
In order to withdraw your liquidity,
go to the “WITHDRAW” tab.
Select the currency and insert the amount you want to withdraw
and hit the “WITHDRAW” button.
Your LP tokens will be sent back to the platform,
and you'll receive your withdrawal amount to the address you are connected with.
On the “Manage your tokens” tab,
you can stake your LP tokens to earn GOVI tokens
and stake GOVI tokens to earn a share in the platform premiums.
The number of GOVI tokens and platform premiums that you earn is based on your share of the pool.
To stake the tokens, go to the “STAKE” tab.
Select the token you want to stake,
enter the amount and hit the “STAKE” button.
To withdraw, go to the “WITHDRAW” tab.
Select the token to withdraw,
insert the amount and click the “WITHDRAW” button.
To claim your rewards, go to the “CLAIM” tab.
Select the token and click the “CLAIM” button.
That's it for today.
Enjoy your experience and make sure to stay tuned
for more updates on the CVI Telegram channel.