Decentralized finance is known for its blockchain-based financial services that mirror traditional finance, creating new services or derivatives stemming from blockchain's unique features. As the growth of the technology increases, the experimentation and innovation in the space, including offerings of decentralized versions of mainstream financial products become what many industries are investing in, for them to be more relevant in the market of today.
As far as DeFi is concerned, an open and transparent financial system is the goal and aims to offer novel financial products while leveraging the key elements and functions of blockchain.
The DeFi development has emerging sectors in;
When you carry out a bit of research about blockchain that has almost all the above-stated emerging sectors, mentioning Cosmos is not by accident because it has amazing projects which unique solutions in the space.
If you are new to Cosmos Network, you must have missed some major events, but not to worry, you are still early as some amazing projects are set to launch their outstanding solution to that major problem in our real-life engagement. As the internet of blockchain, Cosmos Network hub shares security with other blockchains which lends its capital to be used to block validating on smaller chains and when building a solution, it's important to look into the security aspect of the solution. It is interesting to know that every project/solution on Cosmos Network contributes to the security of the entire ecosystem and thereby makes the network so secure.
Comdex is a DeFi infrastructure layer of the Cosmos ecosystem and at the time of writing this article, two projects are on under testing on its chain.
Let's talk about the lending and borrowing protocol built on Comdex Chain
Commodo is an IBC-Native collateralized lending & borrowing platform built on Comdex Chain and as far as lending/borrowing platforms and protocols are concerned there are various benefits for market participants:
For Borrowers, let's us look at it from two angles,
For Lenders, a lot of benefits:
Let me stop here, let's look into what Commodo set to offer
Commodo team look into the problem in the current lending borrowing markets and design a solution to solve the problem.
One of the problems is a limited amount of single borrowable assets due to an adoption of a pooled lending model, where lenders’ assets are pooled for borrowers to borrow at an interest rate.
Commodo is designed to have isolated money markets called cPools which will serve as highly liquid assets of the Cosmos ecosystem In the future, money markets for interchain assets from Ethereum and other ecosystems are certain.
As a lender on Commodo, you can lend Cosmos ecosystem assets to earn yields, but as a borrower, you can borrow with overcollateralized loans, paying a dynamic interest rate that depends on the platform’s supply and demand of assets.
In conclusion, decentralized finance leverage blockchain in its operations to solve a major pain point allowing users to not only access funds but do so in a transparent manner this solution is going to help the under-banked, de-banked or completely unbanked. As Commodo is yet to be launched, you can check out the testnet platform and study the operation closely.
Commodo Testnet: https://testnet.commodo.one
Guide about the testnet: https://blog.comdex.one/how-to-use-commodo-platform-walkthrough-841865dd4c8b
Learn More About Comdex: https://comdex.one/
