CORAL DEX — Make Dummy Money History
On 13th July, 2020, the CORAL DEX was officially launched. CORAL DEX is a decentralized digital asset trading platform invested and incubated by the SERO Foundation.
CORAL is currently the world’s only privacy-protected decentralized trusted digital asset trading platform based on blockchain smart contract technology, CORAL aims to bring the mainstream digital assets such as Bitcoin through Oracle and Cross-Chain Technology, as well as the digital chain circulation of real assets. CORAL will support cross-chain assets within the year.
There are many decentralized exchanges apart from CORAL DEX, however, most DEX exchanges still continue to follow the governance model of centralized exchanges for listed assets. Although DEX can solve the problem of asset security and trading data transparency perfectly, CORAL DEX can do better evaluation of trusted assets.
CORAL DEX has proposed strict screening standards for digital assets traded on the platform, and has been exploring how to decentralize technical means and honestly respond to how to filter out “quality trusted assets” where real assets need to be transformed into assets on chain through regulatory compliance channels. But DEX can also cut through the contract based trading and contract asset management level, and use corresponding technical means to enable investors to have a clear risk definition of the digital assets they invest in.
CORAL DEX’s Decentralized Governance Mechanism for Platform Trading Assets is Mainly Implemented Through Two Levels:
- Contract Based Guarantee Risk Control Mechanism for Trading Assets
- Evaluation and Governance Mechanism of Assets in Contract Based Trading
Contract Based Guarantee Risk Control Mechanism for Trading Assets
1. Reliable Liquidity
In many exchanges, the so-called initial public offering is often an unverifiable sham. Using the lack of effective technical means by the user to query the contract data that has actually been circulated in the coin issuance contract, it is claimed that various initial public offering are complete acts of deceiving the user. Most exchanges claim that the circulation distribution of the issued project is completely unprovable, so how can the so-called initial public offering be guaranteed?
What is certain, however is that the assets issued for the first time on the CORAL exchange must ensure that these assets to be sold are indeed the first batch of unlocked circulation in the contract. CORAL will provide a contract address that directly prove to the user the amount of assets in the contract that have been circulated.
2. Using CPPI Mechanism: A case of Asset-Guaranteed Issuance Mechanism-AGI (Assets Guaranteed Issuance)
AGI is an issuance channel that uses smart contracts to carry out asset backing to ensure the value of sales of assets.
In addition to providing platform services for normal trading pairs, CORAL is the first in the world to create an asset backing by smart contracts to ensure that digital assets issued for the first time or subsequent issuance can be obtained within the specified time range. The contract code is used to buy back the issued assets at the promised price.
From the logic diagram on the left, you can see the principle of implementing this channel: all stablecoins that purchase such issued assets through existing trading pairs will make a guaranteed buyback within the agreed time limit of a buyback clause, this buyback completed automatically in the contract. At the time of issuance, the account address of the user buying the asset will record the purchase amount of the account in the contract. When the user fulfills the buyback clause terms, he or she can enter the asset purchased at the time into the contract and obtain the corresponding stablecoins at a guaranteed price.
This issuance channel mechanism completely guarantees the bottom line that users can bear the greatest risks. And this mechanism is not an innovation aimed at the traditional financial field. In fact, in the traditional asset management, there are often stop-loss limit terms.
But in fact, AGI provides a wide variety of options. It is completely foreseeable that some asset sales will provide a 100% repurchase guarantee at the time of the subscription price, even more than 100%. Under what circumstances, will there be projects that dare to promise to buyback the issued assets at the original price?
In fact, today’s digital currency market has too many empty and dummy coins to make users think that this is what digital money is, and gradually forget that we originally hoped to create value through blockchain, and let the early investors invest in this new technology to get rich returns.
CORAL also has many AGI-like mechanisms to define different trading assets to meet the risk isolation needs of investors when investing.
The Evaluation and Governance Mechanism of Assets in Contract Based Trading
For assets that are already in circulation, CORAL DEX also has a set of decentralized technical means to make an evaluation system of assets in various dimensions. It is precisely because DEX, is a contract-based transparent trading mechanism, can ensure that these mechanisms become feasible.
Liquidity Assessment and Penalties
The risk control engine of CORAL DEX defines the evaluation system of asset liquidity through public governance, defines different liquidity ratings according to the maximum liquidity/actual circulation of assets, and formulates different punishment mechanisms based on the rating system. The most serious liquidity will not be able to continue to trade on the platform under a rating for a certain period of time, and a part of the underlying margin deposit assets in the contract will be compensated according to the data account that is traded in CORAL DEX.
Price Deviation and Investment-to-Bet Mechanism
The CORAL DEX risk control engine defines the evaluation system for the price deviation of assets in the current and a period of time through public governance. Based on the average trading price of the asset over a period of time, and the numerical analysis of the deviation from the current price and historical price, different definitions are defined. The price deviates from the index rating.
Some of the assets traded on the platform need to provide a part of the trading margin in the form of contract pledge. Before the trading par is listed, all future investment users will be agreed through smart contracts. Meeting the conditions under a certain rating will trigger a betting agreement and use this part of the margin assets to fulfill the punitive terms of the betting agreement.
Extreme Market Fuse Mechanism
The CORAL DEX Risk Control Engine provides a fuse mechanism under the extreme price fluctuations of the entire platform or a single asset to ensure the safety of platform assets, and provides risk control contracts to identify and rate abnormal trading or extreme market psychology to further protect the asset safety of investors and the operation of the market within a rational range.
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Official Links
Coral Whitepaper: https://github.com/coral-dex/whitepaper/blob/main/docs/CORAL-WhitePaper-cn.pdf
Twitter: https://twitter.com/CoralDEX
Medium: https://medium.com/coraldex
Github:https://github.com/coral-dex/corswap
Discord: https://discord.gg/QM4JEKK
Telegram Group: http://t.me/CoralSwapEN
Telegram Channel: https://t.me/CoralSwapANN
