One of the good things about Cobidex is that it supports perpetual market trading. Perpetual contracts are on the rise since they provide an added advantage over crypto futures contracts.
Just with the rapid rise of the broader crypto market, the demand for a decentralized crypto derivatives platform is growing simultaneously. But with the number of crypto exchanges popping up at a rapid speed, traders are finding it difficult to find legitimate players in this increasingly crowded space.
Cobidex is the world’s first community-driven crypto derivatives platform aiming to serve the broader trading community. Starting out as a hybrid derivatives exchange, Cobidex will transition from a semi-centralized to a completely decentralized exchange with community control.
This transitional approach will allow Cobidex to maintain sufficient liquidity at the beginning offering a good trading experience with zero slippages. Upon this complete transition, the community will gain ownership of the exchanges through its native governance token COBI.
Understanding the COBI Tokenomics
As said the Cobidex decentralized exchange has been governed y the COBI token. Besides, the holders of the Cobi tokens also get the voting rights on decisions affecting the exchange. As a result, the Cobi token holders will receive a share of the daily revenue generated by the exchange.
This is directly proportional to the share of their Cobi token holding or the Cobi token staking. The Cobidex users can receive Cobi tokens as rewards for three major things:
- Trading on the platform
- Referring the exchange’s services to friends and acquaintance
- For staking existing crypto assets
The total supply of Cobi tokens is 4.8 billion and shall be distributed to trade miners in four different stages. Explaining the tokenomics further, Cobidex notes:
“Traders will generate 1 Cobi for every $0.05 paid in fees till coin distribution reaches 600 million. After that, trading fees will increase by $0.05 at every stage for 1 Cobi. The supply of Cobi tokens will remain constant even if the demand for them escalates. This will further increase the token’s value”.
Key Features of Cobidex
The mining of the Cobi governance token has been divided into three different parts. This includes trade mining, referral mining, and liquidity mining.
- Trade Mining: The Cobi governance token won’t be offered via any public sale. However, they will come into circulation through the process of “trade mining”. Herein traders will receive Cobi as trade mining incentive rewards just for trading on the Cobidex exchange. These rewards will be 100% in line with the trading fees paid.Cobidex will pay Cobi token rewards every 24 hours of the trades executed. Furthermore, users can stake the Cobi tokens to receive a daily yield from Cobidex’s daily revenue. The distribution of this staking reward will happen on a daily basis. Cobidex is planning to distribute 50% of all Cobi tokens via trade mining.
- Referral Mining: As part of the community-driven exchange, participation in Cobidex is through the invite-only process. This will encourage rapid onboarding of new members. Besides, Cobidex will offer these traders a personalized level of trading features that come with fewer restrictions.Cobidex said that it will be offering 20% of their entire trading fees in perpetuity as the referral mining bonus. Initially, the exchange will pay the referral mining fee in Cobi tokens. Once the token distribution period ends, it will pay the 20% referral bonus in USDT.
- Liquidity Mining: Apart from the above two process, a third way of earning Cobi rewards is through liquidity mining. This can be done with users staking their existing tokens. Liquidity mining can happen through multiple cryptocurrencies like BTC, USDT, ETH, and other alt-tokens, with APY paid out in the deposited token.
Perpetual Market Trading on Cobidex
One of the good things about Cobidex is that it supports perpetual market trading. Perpetual contracts are on the rise since they provide an added advantage over crypto futures contracts.
Unlike the futures contracts that liquidate at a fixed date, counterparties can stall liquidation for perpetual futures contracts for as long as they want. The trades can continue without added trading costs except for the funding expenses. It also allows traders to maximize profits by a small initial investment while opting for higher leverage.
Given all the above-mentioned factors, Cobidex can become a good choice for those who are interested in crypto derivative trading and want to explore new opportunities.