What Is Coliquidity (COLI)?
Normally you need to deposit two tokens into the liquidity pool to earn liquidity provider fees. However, Coliquidity allows you to deposit only one token. You don’t need to buy the other token at all. Coliquidity will match your deposit with someone else’s deposit for another token. Technical description is a smart contract that combines 2 tokens from 2 providers to create a new pool or deposit into an existing pool on Uniswap / PancakeSwap / any exchange.
Coliquidity use the above concepts to motivate our solution, in which we construct a decentralized trust network brought to life by a protocol. The network itself can be considered a decentralized prediction market for future human behavior. As Augur authors have suggested, the value in decentralizing—in this case with human behavior—is to similarly revolutionize the way people receive and verify trust with others.
Coliquidity Storage Key Points
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Why Coliquidity is less risky than providing liquidity?
Suppose you provide liquidity directly. You make money if the price is stable. You lose money if the price goes down, and you lose twice, because both sides of your position are worth less (base token is worth less because the price is down + quote token is worth less because its quantity has decreased due to selling).
Suppose you provide one-sided liquidity via. You make money if the price is stable, because Coliquidity gives you the same LP fees (proportional to your liquidity amount). You lose money if the price goes down, but you lose less than with regular liquidity provisioning, because only the quote token quantity is decreased (you don’t hold the base token, so it doesn’t influence your PnL).
Who is bearing impermanent loss risk?
If one provider takes a loss, the other provider makes a profit. This happens because providers withdraw the same type of tokens that they deposited. So, if Alice deposits ABC, Bob deposits USDT, then ABC-USDT price goes up, there will be less ABC and more USDT in the pool, so Alice will take a loss, and Bob will make a profit. It works the other way, too: if the ABC-USDT price goes down, there will be more ABC and less USDT in the pool, so Alice will make a profit, and Bob will take a loss.
Why should I use Coliquidity as a project owner?
As a project owner, you can create the pool without providing ETH – just provide the tokens and allow community members to provide ETH. Save money – build a gig along without slippage & trading fees (the project provides the tokens, you provide the ETH, smart contract puts your liquidity together into the pool).
Rewards Program for COLI Holders
Also, you need to answer the questions about Coliquidity (Your product) every week. If you don’t want to answer the questions, you can join the team, and the team leader will do it for you. The questions will be about Coliquidity (Your product). They will prepare 3-5 new questions every week. The questions form will be protected by a CAPTCHA to stop the bots. They want to attract users for Coliquidity (Your product). To attract users, they are giving rewards. Also, educate users about Coliquidity by requiring them to answer questions about your product to receive the rewards.
Objectives for the Human Trust Protocol
Envision a world in which interactions and transactions between Internet strangers are supported by a new trust layer on the Internet enabled by the Human Trust Protocol. Reputation becomes self-sovereign under the control of users. With appropriate permissions, anyone will be able to assess the relevant trustworthiness of anyone else with whom they are about to engage, and users can transfer their trust from one community to any other. In short, there is an opportunity to rework the underlying incentive mechanisms of social networking and sharing economy services to create more trustworthy interaction.
Trust is then the prediction of an identity’s future behavior. Coliquidity To aid in prediction and enable trust-at-a-distance, the Protocol provides methods for evaluating a user’s capability and intent. Capability may be assessed through a user’s reputation, i.e. were they already successful in doing what they will be asked to do? Intent is the motive to perform a future task. Even if a user has capability but lacks intent, they cannot be trusted on a future task.