Conic Finance Review: The Big Contribution To Curve’s Success
Nowadays, with the emergence of DeFi and the LSD trend, projects that offer liquidity and staking occur often, however, the majority of these protocols employ outdated techniques. Conic Financing is an initiative that offers Curve significant cash. Adopting a specific mechanism, Omnipool, allows this protocol to generate higher profit and deeper liquidity for users and projects. Is it possible for Conic Finance to grow in the future? Find out with Coincu through the Conic Finance Review article below.
What is Conic Finance?
In the ever-evolving landscape of decentralized finance (DeFi), Conic Finance has emerged as a pioneering protocol operating on the Ethereum blockchain, offering a novel approach to liquidity provision. The platform has introduced a groundbreaking mechanism that enables liquidity providers to gain exposure to multiple Pools within Curve Finance, all through a single LP token.
At the heart of this innovation lies the concept of Omnipools, a revolutionary approach designed to streamline and diversify liquidity allocation. Conic Finance harnesses the power of Omnipools by aggregating users’ liquidity and subsequently allocating weighted liquidity to various Pools on the Curve network. As a result, users who contribute their liquidity to the Omnipools receive Conic LP tokens, representing their proportionate stake in the aggregated liquidity pool.
This user-friendly platform caters to liquidity providers seeking to effortlessly diversify their exposure across multiple Curve funds. Anyone can contribute liquidity to the Conic Omnipool, facilitating the distribution of funds across Curve in alignment with the protocol-controlled pool weights.
Furthermore, Conic Finance seamlessly integrates with the Convex Finance platform by automatically providing Curve LP tokens. This integration not only bolsters the utility of Conic LPs by encompassing CRV and CVX benefits but also awards them with CNC Conic Finance DAO tokens. The CNC tokens offer recipients the ability to stake and partake in protocol governance, effectively involving them in shaping the future of the Conic ecosystem.
Following the LSD trend, when current cash flow is flooding into multiple projects like Lido and Rocket Pool, the ability to mine deeper while offering liquidity will enable users to diversify investment alternatives and profit. Improved productivity and financial flow management. Conic strives for the same outcome. Now, the Conic Finance Review article will learn about how the project works.
How does it work?
The ingenious mechanism involves a cyclic update of liquidity allocation weights within the Omnipools, and it is now powered by a decentralized autonomous organization (DAO) vote in which vlCNC holders actively participate.
The core framework of Conic Finance operates as follows:
Omnipools: A Paradigm Shift in Liquidity Deployment
Conic Finance introduces the concept of Omnipools, a cutting-edge feature that redefines liquidity deployment in the realm of Conic Omnipool. This innovation harnesses the potential of liquidity across multiple Pool Curves, enabling users to seamlessly deposit their assets. This integration not only simplifies the process but also optimizes the utilization of liquidity.
Liquidity Distribution: Fostering Balance in the Curve Ecosystem
One of the glaring challenges in the Curve ecosystem has been the overwhelming influence of incentivized liquidity. To counter this, Conic Finance has laid the foundation for a more balanced liquidity supply. Through the establishment of Conic governance, vlCNC holders wield direct control over the distribution of liquidity among various Curve pools. This democratic approach ensures that the power to shape liquidity allocation is vested in the hands of the community.
Empowering Governance: A Self-Sustaining DAO
At the heart of Conic Finance lies an innovative governance model powered by a self-sustaining DAO. This forward-thinking protocol puts the Conic community at the helm, driving the decision-making process collectively. The introduction of a DAO empowers users to actively participate in shaping the future of liquidity allocation and other vital aspects of the ecosystem.
The cycle of change orchestrated by Conic Finance is marked by the biweekly update of liquidity allocation weights within the Omnipools. This strategic adjustment not only prevents stagnation but also allows for a dynamic response to evolving market conditions. Importantly, vlCNC holders play a pivotal role in this process, casting their votes to determine the allocation weights for each Omnipool.
Minimize risk of slippage
One remarkable aspect of Conic Finance is its solution for users grappling with substantial liquidity deposits or withdrawals. By diligently assessing the Total Value Locked (TVL) at the moment, Conic Finance efficiently manages any slippage that might occur during these transactions. Consequently, users can be shielded from the adverse effects of slippage, ensuring the safety of assets within the pool from potential attacks or persistent slippage costs. Moreover, a safeguard against excessive slippage is available, enabling users to establish a designated slippage margin during deposit or withdrawal procedures.
Capital allocation advantage
The incentivization scheme implemented by Conic Finance is an enticing factor for regular depositors and withdrawers. Users participating in Omnipools while the pools remain unbalanced and the rebalancing rewards period is active are rewarded with CNC tokens. The allocation of CNC tokens is proportionate to the deposited amount and progressively increases during the period of pool imbalance, ceasing once equilibrium is restored.
Liquidity providers gain a strategic advantage through Conic Finance’s unique approach to capital allocation. Rather than having to compromise between a low Annual Percentage Rate (APR) and risk mitigation, the Conic Omnipool empowers users to equitably distribute risks and profits across pools. This revolutionary approach bolsters overall liquidity efficiency and eliminates the need for an unfavorable trade-off.
Simplify the payment process
Furthermore, the acquisition of CNC tokens and engagement in related endeavors, such as staking CNC to receive vlCNC tokens, enhance user profitability. A notable benefit is the simplified liquidity creation process, as Conic allows users to contribute a single token for liquidity provision, diverging from the traditional requirement of token pairs.
For those wielding vlCNC tokens, efficient capital management is attainable, particularly when participating in the voting for liquidity pools on Curve and associated activities. This not only empowers users but contributes to the efficient management of liquidity within the Curve ecosystem.
From a broader perspective, the collaborative synergy between Conic Finance and Curve not only bolsters the latter’s liquidity attraction but also mitigates the liquidity-related price slippage concerns. By fostering user participation and engagement through Conic’s ecosystem, both Curve and its affiliated platform, Convex witnessed expansion and heightened adoption.
- Name: Conic Finance
- Token symbol: CNC
- Type: Utility Token
- Blockchain: Ethereum
- Contract: 0x9aE380F0272E2162340a5bB646c354271c0F5cFC
- Total Supply: 10,000,000 CNC
- vlCVX holders: 10%
- Community raise: 30%
- Liquidity providers: 44%
- Treasury: 6%
- AMM Stakers: 10%
Users will get CNC tokens by staking Omnipool liquidity tokens. Since the supply is limited, the more users there are, the lower the CNC pay will be, causing the token price to rise. At the same time, any extra Curve liquidity pool prizes (e.g., FXS, SPELL) will be sold for CNC (which continues to be rewarded to stakers).
After that, Conic customers will obtain vlCNC by staking CNC holdings for 4 to 8 months (the longer the lock, the bigger the amount of vlCNC).
vlCNC may be used to do the following:
- Participate in the voting process for liquidity pools.
- Curve users may vote for a whitelist or a blacklist.
- Vote on what material should be added to the platform.
- Protocol modification proposal.
- Pay a referral fee.
Conic DAO has announced that all investors who possess vlCNC tokens are now eligible to participate in voting processes. The initiative aims to establish a more inclusive and decentralized governance model for the Conic project, allowing stakeholders to actively shape its future trajectory. By staking CNC tokens, the proprietary cryptocurrency of the Conic project, investors will gain access to vlCNC tokens, which serve as voting power within the Conic DAO ecosystem.
The newly introduced voting rights are set to play a pivotal role in determining the course of action for various proposals related to the Conic project’s evolution. Two key categories that will fall under the purview of the community’s voting power include Conic Project Improvement Proposals (CIP) and potential amendments to the principles outlined in Curve (CAP).
One of the fundamental principles highlighted in the project’s tokenomics is the emphasis on community involvement. The governance rights are squarely placed in the hands of the community that has invested in Conic. This strategic move ensures that every vote cast carries significant weight, untainted by external influences such as corporate teams or venture capitalists.
Conic DAO’s commitment to fostering an environment where each participant has a say signifies a departure from traditional decision-making structures prevalent in the blockchain and cryptocurrency realm. By providing a platform where stakeholders’ voices are amplified and valued, Conic DAO is setting a new precedent for collaborative governance in the ever-expanding landscape of decentralized projects.
Conclusion of Conic Finance Review
Conic Finance is riding high on the commitment of Smart Money within the cryptocurrency sphere. The resilience of smart money, coupled with its diamond hands approach, has painted a positive outlook for Conic Finance’s future endeavors.
Over the past few years, Curve Finance has solidified its position as an indispensable component of the DeFi ecosystem. Moreover, Curve Finance’s infrastructure has become a breeding ground for innovation, allowing other projects to build upon its framework.
This collaborative ecosystem has created a ripple effect, propelling the DeFi space into new realms of possibility. As a result, Curve Finance’s impact extends beyond its own offerings, influencing the broader landscape of decentralized protocols. Hopefully the Conic Finance Review article has helped you understand more about the project.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.