Canto: Based on Cosmos, A Fast-growing DeFi New Public Chain
Canto token prices rose rapidly in 2023. What is Canto and why did it experience such a rapid rise in prices? This new blockchain and coin debuted in August 2022. We will be looking at Canto in greater detail. Canto is a more decentralized EVM chain than other emerging ones. It has no investors and does not set up foundations. Instead, it relies on the community to provide free public infrastructure (FPI), contract revenue distribution (CSR), and lending. These protocols often issue governance tokens that are equivalent to renting from users. Canto decided to change its mind and launched the three basic protocols. These tokens are public utilities that can be used to obtain rent from users. Canto DEX is based on the principle that “minimum user capture” and can only be traded through aggregators. CLM (Canto Lending Market) The lending market is forked using Compound v2 and governance is managed by Canto stakers. All interest paid by the borrower goes directly to the lender. There are no fees. NOTE created all the supply at the beginning of issuance and put it into CLM so that users could borrow. To borrow NOTE, users can mortgage assets in CLM. NOTE can only be lent to CLM and no new NOTE can be issued. Canto DAO manages ecosystem construction using the interest generated by lending NOTE. First, it is important to remember that NO matter how high NOTE is in the trading markets, its value in lending market will always equal $1. When NOTE is lower than $1 in the trading market, the lending rates are increased and users are willing deposit interest to reduce circulation and to sell. However, when NOTE is higher than $1 the lending rate drops and users are more likely to borrow and to sell NOTE. NOTE: The interest rate will automatically adjust every 6 hours based upon the TWAP of market price. When NOTE is lower than $1, the lending rate is increased and users are more willing to borrow and sell NOTE. Contract developers will receive a portion of the fees they generate from users when they interact with contracts on the chain. CSR (Contract Secured Revenue, contract fee allocation model) will give contract developers some NFTs to claim benefits. CSR converts the fee income generated by users in every transaction into NFTs that can be used for accumulation. NFT owners can also withdraw the benefits at any moment. These NFTs can also be traded, split and combined in community-created DApps. CSR allows for custom distribution. The cumulative revenue from a project can be distributed using third-party tools.
CSR NFT can be used to secure mortgage loans. This makes it easier for developers and investors to raise development funds.
Support for complex projects: CSR allows for the accumulation of accrued benefit from multiple contracts into one NFT. This means that even complex agreements involving multiple contract can make full use CSR to generate income.
Avoid regulatory risks: While issuing tokens can pose regulatory risks, CSR allows project developers to earn steady and continuous income without issuing tokens.
CSR’s launch is intended to provide stable income to developers so they don’t have to rely on institutional investment, tokens, etc. to generate income and keep operations going. It is, in essence, to make the ecology more decentralized. It is similar to FPI in that it is closer to the “public utilities”. Canto proposed a CSR when the leading high-quality projects on the chain are public utility tokens.
The chain upgrade proposal to launch CSR on the mainnet, and eliminate basic fees was initiated. It was voted through.
A proposal to raise the Canto Gas fee and allow CSR (disabled default) was made and passed on January 26, 2023 (EST).
Product dataTVL dataAs you can see, the current TVL for the Canto chain is $193.4 million. This ranks 15th among all blockchains. Canto DEX, lending CLM in FPI and CantoSwap are the other main ecosystems on Canto. Canto DEX and lending CLM in FPI are two examples. The TVL for Canto DEX is $126million, which accounts for approximately 65% of total TVL. CLM’s TVL is $65.5million, accounting for approximately 35% of total TVL. CantoSwap has three smart pools, CantoSwap, third-party DEX Forteswap, and Y2R. The initial total supply of CANTO tokens is 1 billion. However, this is theoretically unlimited inflation. The upper limit could be increased over time and has not been used in recent years. The initial circulation of CANTO is 150 million.
2%: Testnet users who participated in its launch
Resting circulation: 5%: to be used for future public goods donations
35%: Medium-term liquidity mining reward (distributed over the next few months or years).
45%: Long-term liquidity mining benefits (distributed in the next 5-10 year).
Information on market value: The current price of CANTO tokens (staking rewards + mining reward) is US$0.61. About 424 million CANTOs are currently in circulation. From August 18, 2022, 16,000,000 CANTO will receive a reward for staking every thirty days and 62.5 millions CANTO for LP mining.
Starting September 18, 2022, 4.5 Million CANTO will reward staking every thirty days, while 30.8 million CANTO are rewarded for LP mining.
Starting January 17, 2023, 3.5 Million CANTO will get rewarded for staking every thirty days, and 23.4 Mio CANTO for LP mining.
Currently, around 900,000.00 CANTO are being released each day. Token dataBased on data published on the official site, approximately 83.84 million CANTO have been converted into wCANTO. This is mainly for adding LP to Canto DEX. Project summaryCanto’s idea of decentralization can be considered a feature. All rules, including token release, are strictly voted on by DAO. The design of FPI/CSR is closely tied to the theme decentralization. It is now clear that the ultimate goal of the project is to allow all ecological projects to use the native token CANTO. According to data growth on the chain/token value growth, this round is largely driven by the launch CSR. The current mining APY is high on the chain, which attracts many users to mine. Comparing with other L1s that have similar TVL data, CELO, which is also an EVM has a value of $375million (FDV $769million) and OSMO, which is also a Cosmos eco-system, has a value of 550million US dollars (FDV 1.05 billion). However, the Cosmos ecology has yet to emerge as a trump card product. Canto includes DEX, loans, stablecoins, as well as Canto’s ecology which empowers the native token. EVM is more suited to the usage habits of most users. If the data grows steadily, there will be an opportunity to become the leader of the Cosmos ecosystem.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.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comHaroldCoincu NewsTags: CantoCosmosDeFiDexFPIOsmosis