As promised a week ago I said I would do amore comprehensive post on the COTI Treasury. I know a few of you are holding bags of COTI and are waiting for it to be available for regions like the US so you can join the Treasury.
There are a few important things to note as there are two types of COTI available. The Native Coti is only available on Kucoin and Huobi and all other COTI on other exchanges is the ERC 20 token. The COTI Treasury only accepts Native COTI and if you have the ERC 20 COTI the cheapest option is to sell what you have and repurchase on Huobi.
The fees from Huobi to the treasury is 1 COTI compared to Kucoin which is around 133 COTI. The COTI bridge which swaps from ERC 20 to Native COTI is not cheap either and why the Huobi route is the cheapest and best option.
Here is a quick background on COTI for those that don't know anything about it and these are the very basics as DYOR is vital in any investment. COTI stands for Coin Of The Internet. COTI is a registered official bank offering banking services for FIAT and Crypto. COTI does have it's own bank accounts and Debit cards that are available but only for EU customers currently. COTI is working behind the scenes making sure they are compliant in any regulations that crypto is required to comply with. This is why there is a delay for the US and a few other countries regarding staking and will roll out when this is ready.
The COTI Treasury is where all the earnings from COTI's services end up and are distributed to those that are staking. COTI has many merchants onboard already and this is where the current profits end up. The stable coins is where the big profits are going to come from with coins like DJED (CARDANO) which is rumored that test net is happening this week. Enterprise tokens which are coming in quarter 4 have been kept secretly under wraps and we have no clue which companies they are for but there are 3 involved. Whoever they are they have to be big to warrant their own tokens and don't be shocked when this happens. Another earner will be the currency stable coins for countries which has been discussed and is part of the plan.
Below are 4 examples of staking on the COTI Treasury with the key being the 4 different levels offering APR from 6.23% right up to 46.92%. There is a fee of 0.7% each time you deposit into or withdraw from the Treasury.
Level 1
No risk offering the smallest APR on 4 levels depending on the days staked. These range from 30-120 days with APR starting for 30 days at 6.23% up to 11.73%. For those that want a passive income with no worries and no risks this is an obvious choice. There is no liquidation price as there is no risk. Health factor is not relevant on this level.
Level 1 x 30 days 6.23%
Level 1 x 60 days 7.33%
Level 1 x 90 days 9.16%
Level 2
The first level where things start to get more interesting offering more rewards with higher APR's, but a small risk attached. The risk is the liquidation price being 10.7c which is half the current COTI price 21.2 c. This is still relatively a safe bet as COTI hasn't been down in these price regions since July 2021 and that low was 10.4c. This is my latest stake today taking the 23.46%. I am not prepared to risk the stake for a few percent going to Level 3, but at the same time doubling what is possible on Level 1. Health factor of 2 is visible and is a warning guide to monitor your stake from liquidation. When it hits factor 1 you need to take action or your stake returns to the Treasury which I will discuss further down.
The key number is the liquidation price being $0.1071.
Level 2 x 30 days 12.46%
Level 2 x 60 days 14.66%
Level 2 x 90 days 18.33%
Level 3
The risk starts to climb from this level onwards with higher APR's on offer and a liquidation price of 14.28c. 35% is enticing mid you and is also risky as the price could drop to the 14 c level if Bitcoin retraces and no one knows what lies ahead. Health factor of 1.5 which gives you 0.5 wiggle room.
The key number is the liquidation price being $0.1428
Level 3 x 30 days 18.69%
Level 3 x 60 days 21.99%
Level 3 x 90 days 27.49%
Level 4
Big rewards come with high risk and can see this liquidation price being tested if the market turns bearish. 16c is only a 5c drop from where we are currently and represents a loss of only 25%. I think if we are in a recovering market then this is the right time to get involved in this level but for now with so much uncertainty locking stake for 30,60 90 or 120 days at this level would be gambling. Health factor of 1.33 which offers 33% wiggle room in price.
The key number is the liquidation price being $0.1606
Level 4 x 30 days 24.93%
Level 4 x 60 days 29.33%
Level 4 x 90 days 36.66%
If the COTI price drops this is not the end of the world as there are options to avoid liquidation. By adding more stake at the new price your liquidation level drops accordingly and resets the staking period. One could keep their stake at 46% APR if you had a safety net of COTI readily available to deploy if required.
May decrease or increase based on $COTI price fluctuations. If your deposit has reached liquidation risk you may add additional funds in order to raise the health factor.
There is a calculator available which one could play around with to safely avoid liquidations. Liquidation calculator
The COTI Treasury is something quite different to what we have seen available as staking goes and in many ways is there form of DeFi.
There is roughly 38% of the total COTI circulating supply staked in the Treasury and has been slowly growing daily. The big question is how the much the APR and the COTI price increase once all these stable coins and services are live. I mentioned above DJED is imminent with test net and is the CARDANO stable coin for their DeFi eco system.
Please always do your own DYOR and if you have any questions I will try and answer them or get the info you require from the COTI team.
