NEW YORK, Feb. 20, 2023 /PRNewswire/ — Polygon (MATIC), a Layer 2 scaling solution for Ethereum, has been gaining much traction in the decentralized finance (DeFi) space. As more and more DeFi projects migrate to Polygon, it is becoming a go-to destination for DeFi traders and investors.
One of the newly launched projects on the Polygon network is Covo Finance. Covo Finance is a decentralized spot and perpetual swap exchange that enables users to trade BTC, ETH, and other popular cryptocurrencies directly from their crypto wallets. The COVO Token is the native token of the Covo Finance ecosystem.
COVO has seen a price surge of 110% in the past week on Uniswap, which can be attributed to the growing popularity of the DeFi ecosystem on the Polygon network. Polygon has seen a surge in demand for low-cost and fast-speed transactions.
Similar to Polygon staking, Covo Finance also offers a unique reward-based system. COVO Token Stakers are rewarded in the form of 30 percent of the platform’s generated protocol fees in MATIC tokens and Multiplier Points, which boost yield without contributing to token inflation. COVO has an initial max supply of 210 million COVO tokens, 150 million COVO tokens are paired with USDC for liquidity on Uniswap. In comparison, 60 million COVO tokens are reserved for rewards vesting from escrowed COVO rewards.
COVO Token stakers also earn escrowed COVO (esCOVO) tokens, which can be staked for rewards as well or vested. The tokens get converted back into COVO Finance over 12 months when a user vests them. Therefore, esCOVO Finance emissions are a form of locked staking that prevents inflation and people from immediately selling their Covo Finance.
The remaining 70% of Covo Finance’s fees revenue is distributed among the liquidity pools, which consist of 50% stablecoins like USDC and the rest in BTC, ETH, etc. In the pool, participants can mint COVOLP tokens with any currently underweight asset, thus counterparty-ing trades and earning rewards for their involvement.
Polygon (MATIC) provides fast, cheap, and secure transactions for decentralized applications. MATIC currently ranks among the top 8 cryptocurrencies by market cap. Polygon has been gaining traction in the DeFi space, with many decentralized exchanges, lending platforms, and other DeFi applications migrating to Polygon. The launch of the zkEVM on the Polygon network in March to enhance the speed and security of transactions is also expected to enhance the platform’s capabilities further and attract more users and developers. Polygon’s native token, MATIC, recently saw a major price increase as the platform announced significant partnerships with industry giants like Siemens for offering Bonds. Other partnerships include Adobe, Draftkings, Football Club, Starbucks, Adidas, Prada, Meta, Stripe, and Reddit.
About Covo Finance
Covo Finance is a decentralized spot and perpetual swap exchange built on the Polygon network. It allows users to trade popular cryptocurrencies such as Bitcoin, Ethereum, and MATIC directly from their crypto with leverage without needing an intermediary custodian.
Company: Covo Finance
Email: [email protected]
SOURCE Covo Finance