How Comdex is driving DeFi in Cosmos.
In our last piece, we highlighted the advantages of building decentralized finance (DeFi) projects on Cosmos over building on popular alternatives such as Ethereum. The key reasons discussed included customizability, interoperability with other IBC-enabled blockchains, and high throughput due to each project being its own PoS blockchain.
However, to date, DeFi on Cosmos has lagged behind, with one significant reason being a lack of stablecoins. This won’t be the case for long — native USDC is almost here, and a proliferation of new stablecoins such as CMST are being rapidly developed. Cosmos has also become much more popular in the media, with some of the brightest web3 developers coming over to build.
DeFi growth might not be far away.
Comdex is well-poised for future DeFi growth on Cosmos, given our position as the optimal financial infrastructure layer for those wishing to build. Building one’s own blockchain on Cosmos is, in fact, a challenging endeavor as it entails time-consuming activities such as back-end maintenance and the development of validator incentive programs.
In this article, we will dive into this further, explaining how the Comdex chain, with its modules, will enable any type of decentralized application to be quickly launched and custom-built.
In turn, we will make it clear why Comdex is both a project and a community worth joining.
Current Painpoints for Developers
Cosmos has been gathering more and more attention due to the novelty of its interoperable application-specific blockchains. New projects have been quickly popping up, and dYdX announced their move over from Ethereum.
Not to mention receiving shoutouts from Vitalik himself!
That being said, any ambitious new project looking to launch a new project on Cosmos might suffer many headaches along the way. It’s not very easy to run one’s own blockchain, which would be the case with Cosmos.
Back-end infrastructure alone must be carefully managed, which is not fun (trust us). Additionally, an incentive structure that attracts high-quality validators must be established. Both of these are time-consuming and costly, despite how great the Cosmos SDK is.
It turns out that there’s a much easier solution.
Let’s establish that financial instruments are monetary contracts between parties, and in the context of DeFi might include lending/borrowing protocols or decentralized exchanges. It turns out that financial instruments can be broken down into a set of building blocks referred to as primitives, which are each responsible for different functionalities.
Our team at Comdex, in fact, spent significant time identifying the equivalent Cosmos-based primitives and then creating customizable “modules” based upon them. These modules are both plug-and-play and customizable, readily available for anyone wishing to build their own decentralized application (dApp) or financial instrument.
For example, let’s consider Harbor Protocol, a Comdex-based application used to collateralize cryptocurrency assets in order to mint the $CMST stablecoin. Harbor relies upon a variety of Comdex modules, including:
- Vault: facilitates the locking of collateral and minting of $CMST.
- Locker: allows users to lock CMST into the Locker vault in order to earn variable interest.
- Collector: accumulates income generated by the protocol.
- Rewards: calculates interest and as such, is tied to other modules such as Vault.
- Liquidations: sells a user’s collateral should their position become under collateralized.
- Price Oracle: fetches asset prices.
Comdex’s Modules Enable Easy Customizable DeFi Infrastructure for Developers
There are 14 modules in total, which you can learn more about here. Moving forward, more modules will be introduced, such as modules that help to bridge DeFi and the world of traditional finance.
Real-world assets are moving on-chain at an increasingly fast rate and will be met with high demand due to their high-interest rates and stable valuations. While DeFi products also offer good yields to users, often times these rates are lower and/or more volatile than yields from existing real-world assets.
And in turn, these real-world assets will benefit greatly through global liquidity networks, blockchain-level security, fractionalization, and the many other benefits that DeFi brings.
For example, Comdex modules will serve purposes such as verifying identities necessary in bringing regulated real-world assets on-chain. Comdex is essentially the financial infrastructure that will serve an industry that’s growing exponentially fast.
Modules Form the Building Blocks of Cosmos DeFi
We’ve established that Comdex has introduced DeFi primitives in the form of modules, which represent customizable building blocks that enable the easy deployment of new applications and financial instruments.
The goal is that these financial primitives will enable any type of decentralized application to be built as needed. As both DeFi as a whole and DeFi within Cosmos continue in growth, developers can build custom-tailored applications to suit their specific needs.
In turn, each application will be able to interact with one another seamlessly, and liquidity will be aggregated cross-chain. It will be a no-brainer for developers to choose Comdex as an easy solution that suits their custom needs.
And as we continue to introduce new modules that help bridge both decentralized finance and traditional finance, more and more real-world assets will be brought on-chain using Comdex primitives.
That’s why Comdex is the ideal infrastructure layer that will help power the future of Cosmos DeFi.
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