CORE may offer the best strategy to reduce the risk of scams, and it might just be the future of yield farming.
CORE is a new project from cVault. CORE’s launch has given a proverbial new hope for the crypto community, with investors citing it as the next YFI. Within 24 hours of release, the CORE token skyrocketed to ~$40 million in market capitalization! This 4000% surge is something not to be easily and quickly overlooked. And with just 10,000 circulating supply, there are some key points and important lessons to reflect on.
- What is CORE?
- The rise of the CORE token
- The initial distribution
- Where does the farmed yield go?
- The brilliance of deflationary farming
- Some words from CORE’s lead developer
- How to provide liquidity and farm CORE
- How to wrap your wBTC into cBTC
- How to unwrap your wBTC into cBTC
- Frequently Asked Questions (FAQ)
What is CORE?
Yield farming has gotten a bit too popular, and many people have turned away from it in turn. With a never-ending amount of investors and participants, it’s pushed yields to be barely profitable, and the values of farmable coins drop very low.
Another issue is that tokens have become inflationary. Many users farm for incentives and then quickly dump tokens for a fast profit. This has created stability issues and has pretty much rendered the decentralized system moot. Thus, investors might not consider participating unless there’s adequate exit liquidity or buy orders.
Enter cVault Finance (also known as CORE Vault). This brand new project aims to eliminate the mentality that’s forced the DeFi world into a downward spiral. It’s essentially a non-inflationary yield farming project wherein the yield from deposits come from autonomous yield farming strategies, similar to what Yearn.finance has done.
What makes cVault Finance’s project different from previous DeFi endeavors is the CORE token’s functionality. You can only get the token using the profits you earn through yield farming strategies with CORE in mind. A pool is also created for users to earn from as the token creates a yield for all its users. This comes from the 1% charge that negates every transaction made to the pool.
The rise of the CORE token
To ensure the price will always be right, only 10,000 tokens were given out, with the coin’s price starting at $100 and cVault Finance garnering roughly $1 million. The token’s non-inflationary attribute pushes buying pressure to go up as time passes while also having some capital in the CORE holders’ system and yield farmers to still get value out of it. It’s a little bit more complicated than we are accustomed to, but it’s been working out great so far.
Just after 24 hours of CORE’s release, a $40 million market capitalization was achieved. This pushed the value of one token to around $4000 for a while, a clear 4000% increase. But, in true DeFi spirit, it soon crashed by 70%. Nevertheless, the project still has more than $10 million in market capitalization, which is still a lot of money.
With users free to stake and de stake at their will but unable to convert liquidity tokens back into Ethereum or CORE, depositing Uniswap liquidity into the protocol readily assures an APY of 950%. This is truly a large and intimidating number to work with. All the tokens that have given liquidity to the protocol instantly became dormant, meaning they could no longer be reverted or transformed. This drove the buying pressure higher still, and the circulating supply even lower.
CORE’s viability as a good token to hold and the farm has further been strengthened by the Arcadia Group’s audit of cVault.Finance. After crunching the numbers, they’ve found that CORE is indeed a safe and smooth endeavor.
The initial distribution
It started with a liquidity event. People sent ETH to the CORE Fair Launch smart contract to get CORE tokens in return. The ETH put in was then matched with the corresponding amount in tokens.
People were able to start farming the coins inside the pools with their own interchangeable autonomous strategies. This pushed the total value locked (TVL) and real value of CORE to go up, while people who farmed CORE outside the CORE/ETH liquidity pool were also able to garner great incentives.
Where does the farmed yield go?
The yield farmed from the staked funds all go to CORE for market-buying. As farmers get yield from the CORE smart contracts, a fraction also goes to CORE holders. Even when farmers try to sell, a part of the sale (considered a transfer fee) contributes to the pool. This pushes for an emphasis on buying rather than selling.
The brilliance of deflationary farming
As tokens continue to inflate due to farming, owners are forced to create more coins. Note that the general nature of yield farming pushes tokens to inflate due to high yield rewards. The general strategy is for farmers to keep yield farming a certain token until it inflates, then moves on to the next one until it also inflates, and so on.
This pushes devs to keep creating coins, turning the crypto ecosystem into a cluttered mess. Many inflated coins are still functional but have attracted no actual interest from investors.
Deflationary farming fixes this issue since it charges fees on token transfers while also letting users farm to earn a said fee. This cycle ensures there will be enough to farm while keeping inflation from occurring.
To further keep things safe, liquidity is taken care of by the CORE Transfers smart contract. This ensures that no withdrawals regarding liquidity can be taken out from Uniswap, which helps stabilize the market.
Governance inside CORE
The CORE system and protocol push for proper decentralization. The entire community gets to hand-pick everything related to the inner workings of the CORE Transfer contract.
The initial plan was to have a farming transfer fee of 1% divided into the following: 93% for the farmers and 7% to the developers. A cool thing about the CORE token is that if it ever decided to work with YFI, the holders would call on how the protocols on the new pool work. This clearly shows double incentives for people holding both YFI and CORE tokens.
With only 10,000 of these tokens to be made, the prices will never drop too low, and the buying pressure will always be there.
Some words from CORE’s lead developer
CORE’s lead dev, 0xRevert, has explained how CORE was created to break shady Ponzi schemes and prevent cash grabs. As the entire project was made to have a “liquidity generation event” in mind, all the tokens to ever be created would be put inside a smart contract that people could put ETH in for a week. All of it would be transferred simultaneously to create liquidity while the LP tokens are rewarded to the people who provided it.
The entire process is automatic, with cVault Finance earning nothing to start liquidity without founder or pre-sale tokens effectively. With most of CORE’s liquidity and volume being rooted in Uniswap, people have been asking for it to be centralized to work in Coinbase and Binance. 0xRevert says this is not the case, as the token is “deeply integrated” into Uniswap and that its liquidity inside the system is “permanently locked.”
0xRevert also stated that future updates for CORE after governance would be through the entry of strategy vaults made and included to give more CORE volume and give more fees to farmers. Some other plans for the project include awarding pre-sale investors with a merch token, most likely an ERC-20.
How to provide liquidity and farm CORE
All of the above can be done at cVault.finance. Truth be told, the process isn’t actually that tedious.
Step 1: Get your own web wallet
Press the start menu in the bottom left of the website and click on Router
Enter the amount of Ethereum you would like to swap for LP tokens and click the “SWAP ETH for LP” button.
An estimate of the number of LP tokens swapped, as well as the gas cost, is displayed. To immediately stake the tokens, you can check the box “stake automatically.”
Wait until your transaction is confirmed and enjoy your new LP tokens.
If you did not want to stake LP automatically through the Liquidity Zap function, you may stake the tokens later by navigating to your wallet on cvault.finance and clicking the stake button. Then, choose the amount you would like to stake and confirm the transaction through MetaMask.
How to wrap your wBTC into cBTC
Step 1: Connect your Web3 wallet
You can connect to our website https://cvault.finance/ through MetaMask or Walletcollect.
To connect your wallet to the website, press the Metamask button and log into your wallet. For this walkthrough we will use MetaMask.
Step 2: Open the Router
Press the start menu in the bottom left of the website and click on Router. A new window opens named Router.exe. Click on the Wrap tab.Step 3: Approve and confirm the transaction
First you must approve the coins by clicking the “Approve” button. Confirm the transaction through MetaMask.Step 4: Wrap your token
After the transaction has been confimed the button will change to Wrap, click on this button to start the wrapping process. A new window opens. Select how much wBTC you want to wrap and click Wrap.Step 5: Confirm the transaction
Confirm the transaction on MetaMask.
Congrats you successfully wrapped wBTC to cBTC
How to unwrap your wBTC into cBTC
Step 1:Open the Router
You can use the Router to unwrap your cBTC to wBTC. Open the Router through the start menu, bottom left. A new window opens named Router.exe. Click on the Wrap tab.Step 2: Enter cBTC
Select how much cBTC you want to unwrap and click the Unwrap button.Step 3: Confirm the transaction
Confirm the transaction through MetaMask and wait for the transaction to be confirmed.
Congrats you successfully unwrapped cBTC to wBTC