Blockchain

Confio does DeFi🚀

Photo by ian dooley on Unsplash

Confio the company behind CosmWasm the smart contract engine, has been working on plans to launch a chain dedicated to DeFi in the backrooms and are now at a point where we can share our plans!

The chain builds on the Coralnet testnet, CosmWasm 1.0 and will be launched as Tardigrade in the coming months.

What is in the Tardigrade launch?

The initial launch is a robust chain and will offer a peg to Ethereum, and Automated Market Making based on the battle tested Uniswap V2.0 contracts. In addition we are busy investigating the possibility of a BTC peg. All this will be powered by CosmWasm.

This gives us a chain with liquidity an automated marketplace and a foundation to build DeFi products.

Our pegs are time limited for 5 years to allow us to build our infrastructure geared to a regulated DeFi market place. The pegs are supervised by governance and have the tools to intervene in times of crisis.

There is much to do to bring this to market and now we have narrowed down what we plan to do. We are now busy planning the activities and prioritising.

There are all the non-coding activities such as legal, validator on-boarding, finalising the economic model/tokenomics, the chain constitution, bounty programme, among other things that we are busy with.

Our plans for launch are as follows.

Early Q4 2020 we launch an incentivised testnet.

Late Q4 2020 we launch the enhanced incentivised testnet

Q1 2021 we launch Tardigrade, our mainnet.

What is in the road map?

The next steps are when the fun begins and real financial engineering harnessed by CosmWasm will show the full potential of the Cosmos ecosystem.

What products will we be looking at? We have seen in the Ethereum DeFi space the rise and rise of derivatives and forms of leveraged trading through collateralised deposits. We will look at those for inspiration as well as the wealth of derivative and structured products in the traditional markets as a source for new products. The products in traditional markets are well understood in terms of structuring, pricing and importantly risk management. These products have also been stress tested in the real world and we can learn from what worked and where there were weaknesses in the design (think of CDOs and the 2009 Sub Prime meltdown nicely illustrated in the Big Short).

The innovation and value building is envisaged as a medium term activity where we experiment, launch solid products, learn and iterate. We also look to collaborate as much as possible to develop multi-chain products, shared liquidity, and continue to innovate with our partners.

Collaboration and Connectivity

Collaboration is at the heart of what we do, as we believe we are stronger when we work with others.

We have begun with our friends at Regen and e-money in collaborating on projects and see these flourish overtime and build real value around the wider Cosmos ecosystem. We also look forward to collaborating with others both in Cosmos and externally as we grow our platform.

A key part of a collaborative environment is the Proof of Engagement model, which at bootstrap resembles a PoA chain and then, through governance, evolves to a PoS-like chain with the added element that rewards are shared with those who are engaged or actively contribute to the chain. We believe this creates a strong community around a chain, and ensures it continues to evolve while maintaining security.

Photo by Aleksandr Kozlovskii on Unsplash

On the horizon

Our journey is just beginning as we build a DeFi platform, and with every journey there is an end destination, even if we stray off the path from time to time.

Regulation and compliance can be dirty words in some parts of the DeFi community. We believe that Regulations need embracing as the off-chain framework which we operate in and that there needs to be a self-sovereign, governance mechanism to enable compliance. We explored the self-sovereign mechanisms in a Decentralised Social Organisation where we ensured that human (social) interaction is at the centre of decision making. This is key as rules are interpreted in practice and are rarely binary which we felt was something that makes DAOs brittle.

Regulated organisations would be able to self-organise within a jurisdiction to ensure compliance with the regulations that govern their organisations. This will see DeFi products being traded within these “garden walls” between regulated institutions. As with traditional markets these “garden walls” are connected through international regulations and cross-border bookings.

How to get involved 💖🤝

We always want to hear from people on ways to collaborate, if you have just ideas or a product that you think fits then please get in touch.

If you are a validator and want to be part of the Tardigrade family we would love to hear from you.

If you are a Dev who is a whizz at Rust or a UI/UX guru we want to hear from you as we will be expanding our team.

We are also looking for funding to see our vision delivered, if you want to get involved we would love to hear from you.

How to get in touch

We have a new Telegram group to discuss all the things about Confio https://t.me/confio_tech

Our team:

martin@confio.tech or Telegram

misang@confio.tech or Telegram

TgradeFinance

Author TgradeFinance

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