Coinbase, Huobi, & Dragonfly Invest $500k into Uniswap Rival Using Decentralized Oracles, CoFix
CoFix, a decentralized exchange (DEX) focused on solving the pricing issues in the DeFi ecosystem, has received funding of $500,000 from prominent crypto firms, including Huobi, Dragonfly Capital, and Coinbase.
The project, founded in March by a China domiciled team, is set to launch tomorrow as it looks to disrupt the DEX market with its decentralized oracle pricing solution. Currently, Uniswap and peer competing DEX’s leverage external price feeds, which in some cases is derived from Centralized Exchanges or other DEX’s. This has since presented an arbitrage issue when it comes to pricing the DeFi market products.
CoFix’s value proposition is to solve this shortcoming; the DEX derives its pricing mechanism form a decentralized pricing oracle dubbed ‘NEST.’ It also leverages an underlying risk model to enhance the DeFi market efficiency further. The NEST protocol introduces various financial parameters for price information and a mathematical model to account for the associated risk, hence an on-chain computable finance ecosystem.
According to an earlier press release by CoFix, its newly designed approach for pricing DeFi, essentially reduces associated risks and arbitrage opportunities. This gives traders a better opportunity to participate in the DeFi market, given the pricing harmonization. CoFix CEO, Sharlyn Wu, said that,
“CoFiX is trailblazing a new path in DeFi with an innovative solution that can truly attract institutional traders and market makers to the space,” said Chief Investment Officer Sharlyn Wu … It leads DeFi into a new chapter of ‘Computable Finance.”
CoFix is also set to launch a liquidity mining initiative later in the month, where the firm will distribute 90% of its native token $COFI to the platform users. Founding members of this DEX include devs from the Alpha Wallet DeFi project and the SECBIT blockchain security team.