Huobi And Coinbase Invest In Decentralized Exchange CoFiX – BlockTribune

Huobi And Coinbase Invest In Decentralized Exchange CoFiX

Announcements, Investing, News | October 8, 2020
By:

Decentralized finance (DeFi) protocol CoFiX has received $500,000 in funding support from Huobi DeFi Labs, Dragonfly Capital, Coinbase Ventures, and several other DeFi angel investors.

Founded in March this year, CoFiX is an advanced automated market-making protocol. It obtains market prices decentralized price oracle NEST Protocol. Unlike other oracle solutions, NEST Protocol provides a collection of innovative financial parameters including double options, price chain, and beta coefficients, which together enable the protocol to effectively verify prices and generate arbitrage-free on-chain price feeds.

CoFiX said that by using a decentralized price oracle, all trades are executed based on the market price. Market makers always sell their assets at the market price plus a computable compensation, because in so doing, they can be accurately compensated for the risks they take. Traders always trade at market prices, with a spread given to the market maker for risks that they have taken. Since the market prices come from an oracle, neither arbitrageurs nor their “services” are needed.

As all trades are executed based on the market price, market makers are able to perfectly hedge their position to lock in profits from the price spread. When a market maker deposits liquidity into a pool, they
Source…