Concordex has been built to unlock DeFi on the Concordium blockchain. The platform will be the first decentralized exchange (DEX) in the Concordium ecosystem, with its primary goal being to provide institutions access to a robust suite of DeFi tools and eventually on-chain derivatives. It is impossible to talk about Concordex without talking about the Concordium blockchain. So, before we go any further, let’s understand how game-changing Concordium is.
What is Concordium blockchain?
Concordium is a proof-of-stake, science-based blockchain with identification built into the protocol level. The identification layer balances user privacy and the need to ensure that each user can be effectively identified for legal purposes. Furthermore, being a permissionless network, anyone can join and participate in the protocol. Concordium also offers high throughput with fast finality, low fixed transaction costs, and user-friendly smart contracts — making it the ideal enterprise chain.
This built-in identification sets Concordium apart from other layer-1 protocols. As Lone Fønss Schrøder, Concordium’s former CEO, put it, the protocol is “by design and philosophy ready to implement solutions and processes needed to comply with regulations of blockchain-based applications — using techniques developed by leading researchers.”
Enabling DeFi for Institutions
For all its innovations and fantastic potential, DeFi has always been a taboo topic for institutions and regulators. This is primarily due to the ecosystem’s perceived “Wild West” nature. DeFi, for the most part, is ruled by “anons” — aka anonymous accounts. While there is definitely something romantic about anyone, anywhere, creating a multi-million dollar protocol without getting judged by anything superficial, it’s not the most regulator-friendly approach.
There is a flip side as well. Rugpulls are, unfortunately, a common occurrence in DeFi. A rugpull happens when a project creator packs up their user’s liquidity and leaves. If the creator is an anon, as they usually are, it becomes very hard (mostly impossible) to track them down.
With so much uncertainty and risk, it’s no wonder why institutions never got involved. However, Concordium’s built-in identity layer makes these “anon” founders accountable for their actions. While Concordium is GDPR-compliant and offers individual privacy by leveraging zero-knowledge proofs (ZKP), the identification layer ensures that legal action can be taken against malicious parties.
Concordex — Unlocking DeFi on Concordium
Concordex has been designed to be the ideal gateway to DeFi for institutional investors. It provides a lending market that supports staking, swapping, and perp trading. Here are the features of the Concordex protocol:
Advanced liquidity management
Concordex keeps your liquidity active and reduces complexity for passive LPs. The “concentrated liquidity” model ensures that your liquidity is concentrated in a specific price range instead of being spread across the entire range. LPs only receive rewards if the token price is within that particular range. There are many advantages of this model:
- It allocates liquidity more efficiently.
- LPs can earn more fees for fewer tokens deposited.
- Less slippage.
- Faster trade execution.
Multiple fee levels
Concordex provides 8 different levels for each pool. The fees range from 0.01% to 1.28%. LPs may select any fee level for their positions. This not only increases the amount of control LPs have on the profits they are generating from their positions, but it also guarantees the best swap price for traders through efficient internal arbitrage.
As mentioned above, the Concordium blockchain and its in-built identity layer makes Concordex the most institution-ready DeFi protocol. Concordex also allows desktop-based multi-sig wallets, which help institutions participate in the DEX with an added layer of security for their assets.
Concordex was designed to be fully compliant since genesis gives the DEX longevity without struggling in the regulatory gray zone. This, coupled with the professional UX/UI, makes Concordex the ideal gateway to DeFi for institutional investors.