What Is Cryptex Finance (CTX)?
While referenced and quoted every day by millions of people within the investment community as one of the key metrics measuring the expansions and declines transpiring in the space, Total Cryptocurrency Market Capitalization has no means or ability to be minted in real-time form. This paper will provide insight into how Cryptex Finance has successfully tokenized this key metric, in your commitment to providing industry participants nominalized exposure to the price movement of the entire sector.
Cryptex Finance For cryptocurrency investors, traders, funds, DeFi users, and institutions, TCAP is an ERC-20 compatible smart contract that tokenizes real-time Total Market Capitalization from all cryptocurrencies and tokens listed on the largest crypto data providers in the world. Collateralizing the new smart contract against assets like ETH or DAI provides the security that this new tokenized asset is backed by a set of rules and collateral enforced by an Ethereum smart contract, thereby tokenizing total market capitalization.
Cryptex Finance Storage Key Points
|Coin Name||Cryptex Finance|
|Circulating Supply||2,932,613.23 CTX|
|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|
Cryptex Finance is a synthetic asset that tracks, in real-time, an external and ever-moving metric, Total Market Capitalization. To do so without any underlying collateral would have created a model where, while an aggregated Oracle Price and divisor tracks the referenced metric correctly, there is no inherent value to a simple price mechanism and thus, no guarantee that TCAP would be traded at the quoted price or maintain its peg to the real-world total market capitalization of all crypto-currencies. They claim that there must be backing collateral behind the TCAP system in order to maintain its price.
Therefore, for any Cryptex Finance token to be minted, there must be at least 100% collateral value staked in a secure smart contract on the Ethereum network. These collateralized smart contracts for TCAP are referred to as Vaults. While 100% collateralization could be the minimum backing for TCAP, it is inherently too risky as even the slightest price movement would cause the system to have insufficient collateral. As such, the TCAP system will require a minimum value of Ratio between 150% and 200% backing collateral.
The price of Cryptex Finance moves according to the crypto market and therefore the minimum amount of required collateral for each Vault changes accordingly. The V aultRatio must always be greater that the system minimum Ratio. When any Vault Ratio is less than Ratio, any user can trigger a liquidation event.
Cryptex Finance A liquidation event allows the caller to pay some of the outstanding debt, TCAP, in exchange for an appropriate amount of the underlying collateral. Such an event is incentivized by offering the underlying collateral at a discount relative to the value of TCAP paid to the Vault Debt.
Cryptex Finance While Cryptocurrency exchange Data API’s are public, to create a central source of Total Market Capitalization Data, this data must be aggregated in a single source. Data external from the Ethereum blockchain must be written to the Ethereum blockchain by some Oracle. In the TCAP system, Chainlink’s oracle suite will be leveraged to provide a trust minimized solution.
Cryptex Finance The Chainlink Oracles reference multiple sources of ”Total Market Capitalization” from multiple feeds, including those outlined in table I. More data sources may be added over time to increase the confidence in the aggregated data feed.
The Cryptex Finance Protocol is managed as a Decentralized Autonomous Organization (DAO) governed by a ERC20 standard interface token, CTX. CTX holders are able to make governance proposals, vote on such proposals, and delegate their votes to other CTX holders. This type of Governance allows for various parameters of the TCAP system to be modified to suit the community and projects best interest. Some aspects of the TCAP system can be upgraded or replaced entirely.
CTX has an initial supply of 10 million tokens, which are distributed to the Cryptex Finance Team, Advisors, Protocol Treasury, and Community members. Any CTX allocated to the Cryptex Team, Advisors, and Treasury are distributed via multi-year vesting contract. CTX tokens are rewarded with a value of ZERO. As time goes on, it may be in the best interest of the project and/or community to allocate and mint new CTX tokens.
The creation of new Cryptex Finance tokens via governance vote will be subject to a 2% per year maximum adjustment. That is, the max supply of CTX tokens cannot increase more than 2% in a given 1 year time span. Minting new CTX tokens may be used for compensation of black swan events that leaves TCAP vaults collateralize, continued incentives for product development, and other solutions that further advance the protocol.