GM, this is your Daily Bolt briefing.
In this edition, we're providing you with a selection of some of the most important data points from our expansive project breakdown on Comdex, an L1 DeFi infrastructure built on Cosmos.
The full ~100 page report, which was released last weekend, is available for Free and Premium members alike.
Read below to gain some valuable insights and intel on the Comdex product suite, the aims and ambitions of the Comdex team, the protocol’s operating expenses, and more.⬇️
Stay alert in the markets.
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Overview
Comdex is a layer-1 infrastructure layer for the Cosmos ecosystem, built to facilitate the seamless deployment of DeFi applications in the Cosmos ecosystem & enable multi-chain communication & capital transfers between CeFi and DeFi. To fulfill its mission, Comdex offers plug & play customizable modules such as:
CDP module, for the creation of debt assets collateralized by IBC-enabled assets.
Asset tokenization module, to represent RWAs (Real World Assets) as on-chain NFTs.
DEX, for building AMM-based decentralized exchanges that facilitate asset swaps between IBC-enabled assets.
P2P exchange, to create on-chain peer-to-peer marketplaces.
Roadmap
Comdex was founded in 2018 and deployed in Cosmos in order to fulfill the scalability and privacy requirements for its Enterprise Trading Platform, which ended up going live 1 year later.
In 2020, due to regulatory hurdles associated with cross-border fiat payments rails (e.g., in-person KYC/AML) and the lack of native DeFi primitives on Cosmos, the team shifted its focus and started building out the Comdex chain.
By Q4 2021, Comdex’s mainnet was ready and the native CMDX token was deployed.
Comdex’s initial suite of products includes Harbor Protocol, a CDP platform that supports the CMST stablecoin, cSwap, a hybrid orderbook-based AMM DEX, and Commodo, a decentralized money market protocol. These 3 initial primitives were deployed between November 2022 and January 2023. Over time, the ecosystem will grow to support a wider range of applications, such as synthetics, trade financing, perpetual futures, and more…
Economics
The Comdex Ecosystem
Harbor Protocol – CMST
Harbor Protocol in an Interchain Stablecoin protocol that allows for the creation of CDPs (Collateral Debt Position) by locking whitelisted collateral assets in order to mint CMST, which is an IBC-enabled fully-collateralized stablecoin native to the Comdex ecosystem.
Composite, CMST, is a stablecoin designed to represent purchasing power and each unit is soft-pegged to 1 USD. Its mechanism design follows the MakerDAO standard that is applied to DAI: CMST can be permissionlessly minted as a debt against an overcollateralized CDP (Collateral Debt Position) that backs its value.
CMST acts as a store of value by not depreciating in value over time. As a stablecoin, it is meant to represent the purchasing power of token holders.
CMST acts as a unit of account and standardized measurement of price in the Comdex ecosystem. This is achieved with a soft-peg to 1 USD.
CMST acts as a medium of exchange and facilitates purchases and sales of goods and services in various Comdex and IBC-enabled platforms.
The Harbor Protocol consist of 3 primary modules:
The Vault module enables the minting of CMST against whitelisted collateral assets.
The Locker module allows users to earn interest on their CMST holders.
The Collector module collects fees and may auction them off if the total amount surpasses a certain threshold.
cSwap
cSwap is an orderbook interchain DEX built on Comdex.
As an IBC-enabled DEX, cSwap offers cross-chain markets and combines mechanisms of both AMM-based liquidity pools and orderbook-based systems. This allows for features such as limit orders and equal-weighted pools that facilitate trading with minimal fees.
cSwap differentiates itself from most liquidity pools by integrating an orderbook that keeps track of buy and sell orders.
cSwap’s orderbook features both limit and market orders:
Limit orders are trades that are only executed at a specified price.
Market orders are trades that are executed at the best available price in the market.
Commodo
Commodo is a borrow-lending IBC-native platform built on Comdex; users can deposit collateral in order to access debt from a lending pool and borrow protocol assets.
Lenders can supply assets to the protocol’s lending pool in order to make them accessible for borrowers and collect floating interest rate payments without having to negotiate terms such as loan maturity, interest rates, or collateral requirements with a peer or counterparty.
Possible use cases for Commodo include:
Shorting assets. For instance, assets that the user is bullish on could be lent into the initial pool and an asset that the user wants to go short could be borrowed. The borrowed asset could then be sold in a DEX like cSwap in expectation of a subsequent price drop. When the price falls, the user could buy back the asset and repay their loan for a profit.
Accessing leverage. For instance, OSMO could be deposited, and CMST or ATOM borrowed. These could then be swapped for more OSMO, and lent once again. This could be repeated multiple times, especially given the low gas fee nature of Comdex.
Yield farming in order to capture token incentives added to any specific market, or simply revenue from yield-bearing assets.
Increase revenue from staking rewards. For example, ETH can be staked as stETH to earn staking rewards, then be used as collateral to get an ETH loan, re-staked for further yield, and repeated. Similarly, users can stake ATOM for stATOM using Stride, lend it out via Commodo, borrow ATOM, and repeat.
The protocol does not guarantee liquidity; instead, it relies on interest rate models that incentivize liquidity:
When demand for an asset increases, the liquidity (tokens available for depositors to withdraw, or for borrowers to borrow) will decline. As a result, interest rates will increase to attract more depositors and disincentivize borrowing.
When demand for an asset decreases, the liquidity (tokens available for depositors to withdraw, or for borrowers to borrow) will increase. As a result, interest rates will decrease to attract more borrowers and disincentivize depositors.
Enterprise Trade
Comdex’s Enterprise Trading Platform facilitates cross-border trading of physical commodities and RWAs (Real-World Assets) using digital assets as collateral. The vision of Comdex Enterprise is to revolutionize the rudimentary process of global commodity trades by minimizing settlement times and maximizing efficiency.
Comdex Enterprise offers solutions in:
Trade workflow management: traders can maintain and exchange key trade documents and information, all of which is stored in the blockchain in a secure and immutable manner.
Live trading with features such as live chats, shared document views, documentary tagging, and e-signing.
Trade settlement in the blockchain at a fraction of the cost and time that would otherwise be required.
Trade financing with advanced features like deal flow visibility or reputation scoring.
These offerings result in notable benefits when it comes to reduced settlement time, KYC, AML and member checks between trading parties, and optimized trading workflows where critical information can be streamlined in a secure and tamper-proof manner.
Enterprise Trade was the first platform launched by Comdex; in the past, it onboarded 18 organizations from across Southeast Asia as the initial set of clients on the platform, which processed over $160M of commodity tokenization.
However, the long-term vision of the platform is to facilitate payment settlements and financing powered by CMST. Nonetheless, CMST is still in its nascent stages.
cAsset
cAsset is a synthetics protocol that allows traders to gain exposure to synthetic assets on-chain. This will allow users to trade commodities and make bets on their price action without having to worry about the associated logistical friction that comes with it. There are 4 different types of commodities:
Agriculture: wheat, sugar, cotton, rice, corn…
Livestock/Meat: cattle, pork, chicken…
Energy: oil, electricity, ethanol, natural gas…
Metals: gold, silver, platinum, copper, lead, aluminum…
By merging the concept of synthetic assets with decentralized technology, cAsset aims to become a trading platform that revolutionizes how market participants engage in commodity commerce.
Users will be able to trade, borrow, and farm synthetic goods from the convenience of a personal device.
Traders can engage in the buying and selling of cAssets against CMDX.
Minters can create and open CDPs (collateralized debt positions) in order to obtain a newly minted cAsset. The CDP can accept collateral in the form of whitelisted assets and must maintain a minimum collateral ratio in order to prevent liquidation (150% as default).
Liquidity providers add equal amounts of a cAsset and CMDX to the corresponding cSwap pool. In return, they get access to earn revenue from protocol fees as well as external incentive rewards based on their share of liquidity in the pool.
ShipFi
ShipFi is a platform that allows for the tokenization and exchange of real-world investment vehicles for trusted stablecoins. This functionality serves 3 main purposes:
Provide a decentralized platform for issuing and raise funds for investment vehicles.
Issue fungible tokens that represent ownership of investment vehicles.
Issue consistent returns on stablecoins based on the revenue generated by liquidity providers.
When someone provides liquidity to an investment vehicle listed on ShipFi using a stablecoin, the user receives a fungible token that represents ownership over that deposit.
Next, the user can stake the LP tokens in order to receive stablecoin earnings as well as SHIP token incentives.
As investment vehicles on ShipFi will be conducting off-chain transactions once they are deployed, it is critical for the protocol to maintain the provenance of the real-world data involving the investment vehicle.
This is achieved with a Proof of Deployment system that keeps track of all transaction records and legal documents involving all investment vehicles.
Zenscape
Zenscape is Comdex’s validator arm, which serves the purpose of increasing Comdex’s participation and visibility in the overall Cosmos ecosystem.
In coordination with Comdex, Zenscape provides infrastructure support services such as:
IBC relayers set-ups and maintenance tasks in order to ensure that the communication between chains is reliable and that users are able to transfer their assets between chains.
Tendermint-based chain snapshots for tracking and analyzing pruned snapshots of Tendermint-based chains.
Public RPC (Remote Procedure Calls) for providing RPC/REST endpoints that ensure the high availability for the Cosmos Hub and other ecosystems.
Token Emissions
Comdex costs in emitting tokens are split into the following tokenomics, with 100,000,000 CMDX minted at genesis and unlocked for 48 months.
Airdrops: 12.5% (12,500,000 CMDX)
2,500,000 CMDX will be unlocked at listing, followed by 2,500,000 CMDX tokens unlocking every three months until the cumulative allocation of 12,500,000 CMDX is distributed.
Equivalent of $140k every 3 months at $0.056 / CMDX.
Community Dev Fund: 12.5% (12,500,000 CMDX)
CMDX allocated to the community development fund unlock three months after listing and are released in equal amounts every quarter till the 30th month from listing.
Equivalent of $93k every quarter at $0.056 / CMDX.
Rewards: 25% (25,000,000 CMDX)
Early liquidity providers will be rewarded.
5,000,000 CMDX of the total allocation to incentivization will be unlocked at listing, followed by 3,000,000 CMDX unlocked every quarter for the next two quarters.
Subsequently, 2,000,000 CMDX will unlock every quarter for the next four quarters.
1,000,000 CMDX will then unlock every subsequent quarter for the next six quarters.
In order of the unlock sequences, the equivalent of
$168k every quarter for the first 2 quarters at $0.056 / CMDX.
$112k every quarter for the next 4 quarters at $0.056 / CMDX.
$56k every quarter for the next 6 quarters at $0.056 / CMDX.
Treasury: 25% (25,000,000 CMDX)
Fund used to run and maintain operations for the protocol.
5,000,000 CMDX tokens will unlock at listing, with 1,250,000 CMDX unlocking every quarter until the 48th month from listing.
Equivalent of $70k every quarter at $0.056 / CMDX.
Team & Advisors: 25% (25,000,000 CMDX)
Tokens allocated to team members and advisors will be released over a 3 year period, with a 12 month cliff from TGE, vesting monthly for the next 24 months.
Equivalent of $58k every month, after vesting, at $0.056 / CMDX.
aiPX is the official sponsor of the Daily Bolt by Revelo Intel
In a post-FTX world, securely trading with leverage and earning real yield in a decentralized manner has never been more important.
aiPX offers cutting-edge risk management for liquidity providers, leverage trading, and a suite of products between perpetuals, binary options, and synthetics.
Earn passive yield and trade with leverage straight from your wallet.
Take the step, join the presale.