1.0 Introduction
Blockchains have been revolutionary by allowing anyone to own and transfer assets across an open financial network without the need for a trusted third part. Decentralized Finance, also referred to as DeFi is the latest development in the industry. DeFi is used to describe the cluster of applications offering financial services based on decentralization. The concept of decentralization stands in contrast with the traditional financial services that are generally centralized.
With DeFi, core traditional financial use cases like stablecoins issuance, lending/borrowing, trading, peer-to-peer payments, and portfolio management are carried outon the blockchain via Decentralized Applications (DApps) or protocols. These create a peer-to-peer financial network, the majority of which are currently built on Ethereum.
According to Dune Analytics, the number of DeFi users in August 2020 is following an exponential trend. It has surpassed 250 000, which is a five-fold increase compared to a year ago. Swap, wallet to wallet trading, staking, stable coin issuance, and peer to peer lending represent the most significant share of the DeFi market to date which offers market participants, the luxury of diversifying their financial investment and earning handsome returns on every one of their investments.
This paper introduces the world’s first cross-chain DeFi investment platform that enables you to invest with high efficiencies without the flaws of existing approaches and enable proper crypto interoperability while creating a safe positive-yield approach to your cryptocurrency financial assets. Cobweb Finances is governed by the Cob token and it is the native currency of the platform. We understand that there is a need to put an end to the notoriously vague and abysmal trends in decentralized finance. With Cobweb Finance, all these will be improved upon to our users’ gains and the decentralized finance market as a whole.
Cobweb Finance consist of two exchanges, a Dex and a Cex as well as a market for derivatives and DeFi. This give users ease of access to investment in cryptocurrencies and real-world financial products. Our unique ecosystem is like no other in the market and it gives us an edge in these early stages of cross-chain decentralized finance.
1.1 Mission
Cobweb Finance’s mission is to open up the vast remaining potential within DeFi and maximize value for every DeFi user. Our technology lets us unite all major protocols and previously isolated digital assets, maximizing cross-chain functionality so that anyone can transact with anyone.
We cater for more assets outside the Ethereum ecosystem and allow investors to buy, sell, lend and trade more cryptocurrencies and increase their position size in the assets they want.
We focus on a cross-chain functionality that allows interoperability with other networks to provide DeFi functionality to assets that otherwise have no access to DeFI services
Although the concept is very new, we believe there is potential for cross-chain money markets in DeFi. In particular, cross-chain money markets will open up liquidity by allowing top performing assets such as BTC , ETH, TRX to participate in DeFi options.
2.0 Cobweb Finance Overview
Cobweb Finance is the world’s first cross-chain investment market that enables you to invest with high efficiencies. With Cobweb you will now be able to buy, sell, lend, borrow, and farm with crypto assets like BTC, ETH, TRX etc.
It is the first of what will be a platform that utilize similar alert mechanism like a spider’s web, auto-triggered module, and cross-chain functionality to provide open and decentralized financial services to the world.
2.1 Core Features of Cobweb Finance
As earlier mentioned, decentralized finance is aimed to drive investment, trading, lending and financial inclusion options for people. However, available DeFi platforms do not offer cross-chain accessibility and interoperability. This leaves a significant gap in true decentralized financial inclusion globally, and that’s where Cobweb Finance is different from the rest.
The Cobweb finance ecosystem’s implementation unifies our internal and external operating system with our customer-centric approach to providing a seamless experience to our users such that they can be able to , sell, lend, borrow, and farm with crypto assets across multiple chains. Our platform is designed to deploy a futuristic financial service using an omnichannel and cross-functional customer journey.
The Cobweb platform has 4 major segments. They include:
1. CEX — You can safely use the APIs provided in our platform to access and make transactions.
2. DEX — You can use your digital assets to provide liquidity and make transactions on our platform.
3. Derivatives — We provide platform for you to trade any digital derivative products and services.
4. Defi — With alert system and auto-triggered function to actualize investment.
2.2 How the Cobweb system is Built
Cobweb is an application/platform built on Ethereum, as such, it leverages Ethereum’s existing validators for security, smart contract deploy ability, and partners services such as oracles for price-reference data.
Version 1 of the Cobweb ships with support for supply-side deposits and Cobweb incentives for BTC, ETH, TRX, USDT, DAI. Version 2 ships with borrow functionality and borrow-side incentives for those assets plus expanded functionality of COB governance on-chain.
2.3 Open Integrations
Built as an open and permissionless application, Cobweb is accessible by anyone, anytime, anywhere in the world. Exchanges, Fintech apps, and financial institutions can integrate Cobweb’s investment market products and provide investment opportunities directly to their users.
3.o Cobweb Governance
As seen in all decentralized projects today, a governance token is necessary for proper decentralization and to ensure the ongoing evolution of the system. To compete in the current environment it’s also critical to have incentives to bootstrap liquidity and incentivize user participation.
Governance and decisions on Cobweb platform will be completely decentralized, and COB Token will govern it. Holders of the token will have voting rights and power based on the amount of tokens they have and can debate, propose, and vote on all changes to Cobweb Finance. This will allow the Cobweb network to be upgradable by anybody with a good idea of how the platform can function better and they are adequately incentivized as they do so.
3.1 The COB token — decentralized governance and incentives
The COB Token is an utility token that will govern the Cobweb Finance ecosystem. It is created on the ERC20 Ethereum blockchain. Utility tokens are tokens intended to provide digital access to an application or service through a blockchain-based infrastructure. COB Token allows for access to the platform’s activities while also providing specific values such as adding as collateral and platform governance purposes to its holders. Its key features include:
• ERC-20 based token used within Cobweb Finance Ecosystem
• It will power future Cobweb finance services and products
• Provide access to governance and decision making on the platform
• Faster transaction times
• Quicker payment settlements
Collectively, COB holders are responsible for managing key parameters of the project such as what assets are to be offered, how rewards are distributed amongst assets, as well as set any platform fees, etc.
COB tokens will also be used to incentivize early participants giving them a voice in the ongoing evolution and management of the platform.
3.2 COB Compensation for users
COB and any other applications that utilizes the Cobweb platform’s security should in theory compensate users directly for that security and cross-chain infrastructure. As such, we felt it was appropriate that COB tokens should be distributed continuously, pro-rata, amongst Cobweb users.
3.3 COB Distribution
There will be a max supply of 31,500 COB tokens. The distribution of COB tokens will be as follows:
70% — Open sale
20% — Initial Uniswap LP
5% — Marketing
5% — Team
Note: 5% for team will be locked for 1 year.
4.0 Marketing Strategy
The contemporary methodology of marketing is through the digital medium. However, the Cobweb Financial ecosystem will use different marketing strategies to promote the platform and get the word about its novel decentralized finance solution out there.
We have thus strategized a well thought out plan; the main pillars include:
We will be using influencers’ service with massive followers on social media platforms like Twitter and Facebook. We will also invest in content marketing strategies using platforms like Medium and Quora.
We understand how far digital PR can go, so we’ll be using PR agencies with a proven track record of success and leverage their expertise and experience to market the platform to get the word out there.
We will also be providing competitions, videos, and information on our Social media platforms such as Twitter, Telegram, and the implementation of a Referral System.
Below is a summary of our proposed methods of marketing:
● Social media/ Influencer marketing
● SEO(News Portals, PR, listing websites and blogs)
● Content Marketing (YouTube, Steemit, Medium, Telegram, Bitcoin talk, Reddit, Hacker noon and other platforms which act as executive tools and medium))
● Referral programs/ Affiliate marketing
● Industry events/ exhibition
● Brand partnerships
5.0 Development Roadmap
1. Nov, 2020 — Project kick off
2. March, 2021 — Cobweb v1 online
· HARD distribution begins.
· Supply-side deposits and COB incentives begins.
3. July, 2021 — Cobweb v2 online
· Expanded COB governance.
· Supply & borrow begins.
· Borrow-side incentives begin.
6.0 Team
We understand that having a strong management team and a proven business strategy in place is fundamental to our project’s success. Our portfolio constructs are primarily driven by our focus on the industry as a whole. This is why only the best brains in the industry have come together to achieve this landmark feat.
Our team consists of impressive experts in the blockchain and cryptocurrency niche, professionals in the finance industry, and thought leaders in tech.
7.0 Web Presence
Website: https://cobweb.finance/
Telegram: https://t.me/cobwebfinance
Twitter: https://t.me/cobwebfinance
Medium: https://cobweb2021.medium.com/
