The community-led decentralized exchange, CoFiX, raised $500k in funding from investors like Huobi DeFi Labs, Dragonfly Capital, and Coinbase Ventures, among other DeFi angels, according to a release emailed to AMBCrypto today.
The new DeFi protocol planned to use the funds to work on its protocol audits and cover early development costs. Like other DeFi platforms such as UniSwap that obtain data from centralized exchanges via oracles, CoFiX also uses a price oracle, called NEST, to obtain external market prices from other DEXs.
All tokens in NEST ecosystem are generated by mining and these miners provide price quotations and pay commissions to receive rewards in NEST ERC-20 tokens. In the case where there is a difference between miners’ quotations and market price, those designated as verifiers in the community can earn revenue from the difference.
Moreover, CoFIX claimed that this decentralized price oracle NEST would provide a package of financial parameters that would enable the protocol to verify prices and generate arbitrage-free price feeds. This also means that on the CoFiX platform traders and market makers will be able to access their risks and compute these risks mathematically and trade at a better price.
The official launch of CoFiX is slated for early October and there will also be a liquidity mining program to distribute 90% of the $COFI tokens to users.