An anonymous DeFi project has announced a new project called coreDEX that intends to bring a variety of new derivatives and liquidity to the DeFi market. The latest product also intends to bridge the gap between options trading and spot markets. This will be done by using a combination of liquidity standards to deploy an on-chain options layer with scalability.
The Core project was initially launched in September 2020 following the raise of $60 million in locked liquidity. It’s currently preparing to launch a new project coreDex.
While the value of the derivative market of traditional financial instruments is estimated to be over $1 quadrillion. In comparison, the cryptocurrency market is still in its infancy. Besides, the uncertain market conditions in underlying assets and liquidity promote volatility.
In the crypto market, the ratio between the bonding curve liquidity and the liquidity reserve vault could also fluctuate, depending on the initial stake during the limited staking window. Ultimately, Core says that their main vision is to promote healthy price movements. Risk minimization is also one of the key targets of Core.
Taking into consideration, Core is launching its new liquidity format Open Vested Liquidity (OVL) that allows liquidity to be locked during volatile movements using a block time schedule. This significantly reduces the amount of risk involved in trading tokenized assets.
All the funds raised during the initial staking window will be used to support the long-term development of the overall coreDEX project. Of this total, 26% of the funds will be used for strategic partnerships and growth, and an additional 10% to be utilized for research and development.
coreDEX will be made available for alpha testers over the course of Q1 2021. DEX version will be initially made available to users with the top 100 holdings in LP or CORE. It will then roll out its DEX to the general public as testing amid the feedback cycle sessions.