In the first half of this year, DeFi shed the limelight in the digital currency field, with lock-up volume exceeding 11 billion U.S. dollars in a short period of time, and the number of wallet downloads exceeded 5,000. However, from the current application of DeFi, this is just a small test of decentralized finance in the encryption industry. With the participation of large institutions and large trading platforms, DeFi 1.0 is about to end and the 2.0 era will begin.
If the old system is sufficiently developed, the process will be longer. In order to shorten this process, tens of thousands of DeFi projects have enthusiastically entered, including not only powerful projects such as Chainlink, MakerDAO, and Compound, but also new projects like Combo.
Combo is developed based on the “four-layer network” technical logic of the Kuchain public chain. It is a new decentralized financial derivative aggregation protocol, including liquidity mining protocol, synthetic asset issuance protocol, pledge mining, oracles, which are traditional financial assets It provides a decentralized financial development bottom layer through seamless blockchain technology.
Combo is completely decentralized and free of access. The purpose is to allow all users to easily participate and provide a solution channel for traditional financial assets and more diverse and complex trading strategies.
Liquidity mining is a way to promote the circulation of decentralized cryptocurrencies. At present, the liquidity mining of Combo mainly refers to products on the Ethereum blockchain. It is obtained by providing liquidity for Combo in DEX income. Simply put, deposit token assets to start mining.
The Combo aggregation protocol will set up a liquidity mining bonus pool. Users can deposit USDT, ETH and other stable currency encrypted assets into the decentralized trading platform to provide liquidity for the Combo asset pool, thereby obtaining the Combo token.
Pledge Combo trading tokens on the Combo pledge platform to participate in Combo liquidity mining. The more funds invested and the longer the time, the greater the share of liquid mining pools obtained. The liquidity mining reward will be divided into the liquidity mining reward pool based on the liquidity mining pool share.
Liquidity mining pool share = user liquidity mining token parameters / liquidity mining token total parameters × 100%
Synthetic asset issuance
Synthetic asset is a financial instrument that simulates other instruments, and is based on a combination of one or more assets/derivatives on Ethereum. The markets for derivatives and other traditional financial assets are very large, with a total market value of hundreds of billions of dollars. Encrypted synthetic assets can connect the world of encrypted assets and traditional financial assets, and create liquidity for the encrypted market.
The operation of the Combo Synthetic Asset Agreement is supported by Combo. When Combo holders enter the Combo-Mint platform (a synthetic asset platform that interacts with Combo smart contracts), they will use their Combo coin as collateral at a mortgage rate of 650% (collateral The change of the rate will be determined by the Combo user’s voting) to mortgage, then synthetic assets can be generated. The mortgage rate can be increased or reduced through the community governance mechanism in the future.
Combo mortgagors will incur debts when they create Combo synthetic assets. To exit the system (that is, unlock the pledged Combo), they must repay the debt by destroying the synthetic assets. Synthetic assets are synthetic assets that track actual asset prices.
In pledge mining, the nodes in the blockchain system do not need too high computing power. They only need to pledge a certain amount of tokens. After running for a period of time, new currencies can be generated, and the new currencies generated are obtained through pledges. income. This is equivalent to depositing money in the bank and getting a certain amount of interest every year.
Anyone who has participated in Bitcoin mining knows that it takes cost to have their own mining machine to mine, especially buying mining tools such as mining machines, graphics cards, chips, etc. This is beyond the reach of ordinary people. of.
Anyone who has participated in Bitcoin mining knows that it takes costs to mine with their own mining machine, especially buying mining tools such as mining machines, graphics cards, chips, etc. This is impossible for ordinary people to achieve.
The emergence of pledge mining has made mining more popular. As long as there is a hard disk, mining can be carried out, which greatly reduces mining costs. At the same time, POC mining uses hard disk capacity to replace computing power and improve calculations. The threshold of power centralization, even if there are super miners, ordinary retail investors can continue to earn profits.
Assuming that the “data source” in the real world and the “data interface” in the blockchain are two countries that use different languages, the oracle is the intermediate translator. Through the oracle smart contract, it can communicate with off-chain data. Obstacle communication.
The blockchain is a closed environment, and the real world data outside the chain cannot be actively obtained on the chain. Mainly because smart contracts on the blockchain passively receive data. Secondly, the smart contract is not actually “smart”, it only reaches the trigger state program when the corresponding conditions are met. At the same time, the final execution of the smart contract requires the signing of the private key of the contract participants, and the smart contract itself cannot be automatically executed. When the triggering condition of the smart contract depends on the information outside the blockchain, the information needs to be written into the record in the blockchain first, and the oracle must be used to provide the information outside the blockchain.
As the first Defi ecological project of KuChain, Combo provides the industry with a decentralized financial development bottom-level platform that includes four protocols: liquidity mining protocol, synthetic asset issuance protocol, pledge mining, and oracle, which can realize multiple zones. Value flow between blockchain assets.