Announcing COV Token’s New Utilities
Dear community,
We are excited to reveal what the Covesting team has been working on for some time now.
As a token-centric ecosystem, we aim to make the COV token an integral part of every application we build, starting with the Covesting copy trading module and beyond. The COV token is a utility token that unlocks a plethora of unique benefits and features exclusively for token holders within the Covesting ecosystem. All Covesting B2B solutions are scalable and can be easily integrated into any third-party platform. Since COV tokens are used to enable multiple benefits and discounts, the demand for COV correlates with the combined activity on all supported platforms.
In this latest blog update, we’re introducing the coming ambitious updates and improvements we’re making to COV token utility and how it impacts users in the Covesting ecosystem.
Phase 1 (May 2021): Boost Copy Trading Profits By Staking COV Tokens
The Covesting copy trading module recently celebrated its first anniversary since its launch. Since the very beginning, the copy trading module was a runaway success, rapidly growing across the global trading community through word of mouth.
News spread virally regarding the huge profits traders were able to achieve both for themselves and for their followers who had been copying their trades. In one example, a strategy manager turned $400,000 into $8.5 million in only a few days, all while making a fortune for their followers at the same time.
The introduction of COV token utility has improved conditions in favor of even more profits for followers and strategy managers who hold COV tokens, and much more utility is on the way. We have a solid development roadmap with a vast variety of upcoming features that will further improve the platform and COV token utility.
Building into COV token value further, we are introducing an innovative staking mechanism. By locking up COV tokens, users are granted with three tiers of account membership status — Advanced, Premium, or Elite — and enjoy a wide range of benefits within the Covesting ecosystem.
The table below represents the upcoming COV staking module that will be released during Phase 1:
The COV token will benefit all membership status levels in multiple ways, ultimately increasing the profitability of the product in favor of members who stake COV tokens. For example, strategy managers can reduce their trading fees; followers can eliminate entry fees and improve the percentage split they earn from profitable trades.
Now, let’s move on to the next even more interesting Covesting ecosystem developments.
Phase 2 (Q3 2021): Generate A Competitive APY With Covesting Yield Accounts
Recently, we announced the addition of new Covesting Yield Accounts coming to PrimeXBT. The explosion in demand for DeFi and staking products that generate an APY on idle crypto assets has prompted Covesting to develop a similar system that lowers the barrier of entry to such products.
The Covesting Covesting Yield Account software simplifies the process for those who don’t have the technical expertise or don’t have the time to dig into DeFi 24/7 but still would like to generate a return on their crypto. You can learn more about what Covesting Yield Accounts offer to the greater crypto community by visiting a blog on the subject.
As a critical piece of the future of the Covesting ecosystem, Covesting Yield Accounts will also provide additional features and benefits unlocked through COV token utility.
Users who stake COV tokens will receive a massive APY boost, earning as much as 2x and high returns over standard variable rates. As per the table below, users can boost returns simply by holding COV tokens:
We are confident that these significant, upcoming product releases, including COV Staking and Covesting Yield Accounts — both enhancing the power of the COV utility token — provide a unique and diverse value proposition to all token holders, users, and supporters.
Earn By Becoming A COV Liquidity Provider
The emergency of DeFi protocols such as Uniswap has introduced a new way to earn from crypto assets called automated market making. Rather than an exchange providing liquidity, these protocols pool liquidity from token holders themselves.
For example, on Uniswap, token holders of both ETH and COV must each provide liquidity by locking up tokens on both sides of the trading pair. Users receive rewards for doing so in the form of an APY. These rewards are distributed to liquidity providers based on the trading fees from those that would rather trade the COV/ETH pair instead.
Using Uniswap, COV token holders and provide liquidity and earn rewards. To learn more about this process and how providing liquidity via Uniswap works, check out this blog post.
Liquidity is an important factor in any platform or market segment. In order to enhance liquidity for COV token further, we will be building an ERC20-BSC bridge that allows users to easily switch between Ethereum-based ERC-20 tokens to Binance Smart Chain.
COV token support on multiple blockchains adds tremendous potential opportunity, in addition to reducing the cost of transactions. Ethereum gas fees have grown as the crypto bull market developed, creating demand to leverage additional blockchains and reduce costs across the community.
Increasing ETH gas fees related to Uniswap and DeFi also gave rise to PancakeSwap, the leading DEX platform on Binance Smart Chain. The popularity of Binance Smart Chain and PancakeSwap have already had a direct impact on reducing the gas costs associated with Ethereum by providing more options overall.
COV liquidity pools will be soon available on PancakeSwap via Binance Smart Chain, in addition to Uniswap on Ethereum.
Burn COV, Burn!
On top of the several benefits already outlined, each COV token holder greatly benefits from token burn programs. Apart from the various incentives for token holders that lock up their COV, Covesting aims to allocate a portion of platform earnings to a systematic token burn program. In more simple terms, Covesting is systematically buying COV tokens on exchanges — both centralized and decentralized — and “burns” them.
“Burning” means that purchased tokens are removed from circulation and locked into an irreversible smart contract address for perpetuity, consequently decreasing the total supply of COV tokens.
This form of reward sets best practices for the COV token economy and simultaneously serves the best interests of Covesting token holders. By systematically ‘burning’ COV, we reduce the total floating supply and support the deflationary nature (scarcity) of the token.
Thus far, Covesting has burned over $500,000 USD worth of COV tokens. A burn table is available at covesting.io/cov-token or within the COV tab of the PrimeXBT dashboard.
Conclusion: Looking At What Is Ahead For COV Holders
COV token holders are now used to receiving multiple benefits, discounts, and account enhancements that significantly improve profitability and enjoyment of the Covesting copy trading experience.
We have sought to follow all industry best practices when developing the utility surrounding the native COV token. Incentive schemes were designed to provide deep utility that would encourage exponential demand as the ecosystem grows while also creating tokenomics that, through token burns, support long-term value for token holders.
We aim to integrate the COV token into all Covesting B2B solutions and continue to offer an attractive and unmatched value proposition to the trading community at large and all active users of our innovative solutions built for a new generation of investors and traders.
It is essential to note that COV tokens should not be treated as an investment. Related risk warnings and appropriate disclaimers will accompany all steps related to COV purchase and/or staking.
Risk disclaimer: COV tokens are a utility token subject to market fluctuations, and therefore, Covesting is not responsible for any gain or loss associated with purchasing COV tokens. COV token holders bear all risks associated with market conditions.
