Ever since it was first introduced roughly 15 years ago with the original Bitcoin whitepaper, blockchain has been lauded as a groundbreaking game changer that would revolutionize the way the world works. Indeed, in building an overall market cap of over $1 trillion at the time of this writing (and having almost reached the $3 trillion mark about a year ago), the crypto space has created immense value for businesses, industries, and use cases of every imaginable type. Blockchain’s inherent security, privacy, efficiency, and transparency have helped creative and innovative teams build smart and performant apps for everything from education and entertainment to finance, healthcare, governance, gaming, supply chain, and more.
Unfortunately, despite all this progress and growth, one of the biggest blockchain verticals – that of Decentralized Finance, or DeFi – can still be difficult and ineffective to use. Like its traditional finance counterpart, entry barriers can be high, investment options are often limited, and the average person can face numerous other challenges in finding the right product, service, or opportunity to generate quality yields or build a portfolio.
Without the right on-ramps, services, and ease of access needed to overcome these challenges, we will continue to see blockchain-based services and offerings struggling to attract users. Simultaneously, governments and oversight bodies will continue taking their time in passing legislation and creating the frameworks needed for the crypto space in general – and the DeFi space in particular – to gain the mass adoption it needs to bring about the global change it has always promised.
A new DeFi project that is challenging this narrative and hopes to bring easy-to-use investment and yield-generating opportunities to users of all kinds all across the world is Collective Finance. This DeFi protocol is built on the high-performance Binance Smart Chain. It was designed to lower the access and participation barriers that the public faces when it comes to investing in yield-generating investment options and provides reliable exposure to digitized commodity representations.
What does this mean, and how does Collective Finance achieve this? As explained by project’s co-founder Crypzom-Zachary, despite its record-breaking growth DeFi users still cannot easily invest in many reliable and low-risk commodities such as gold, silver, or oil. If they can, there are often very heavy restrictions and high fees associated with such investments. This makes it difficult for investors to generate passive revenue streams for themselves.
What Collective Finance aims to do is create C-Tokens – tradable asset-backed and over-collateralized representations of these commodities – that come with reliable and predictable yield-earning potential and easy investment options and none of the restrictions seen in traditional finance.
The project has multiple commodity representations listed in the project roadmap. The first is $CGLD, a C-token for gold. Collective Finance will acquire PAXG tokens – which are backed by physical gold – and will issue $CGLD on BSC against these tokens. This $CGLD will be over-collateralized while retaining its price peg to the price of 1 gram of gold. All C-tokens – from $CGLD to new C-tokens that will be issued down the road – will be managed by the Collective Finance Vault, Treasury, and Portfolio. These three components are powered by the CLF token which allows users to earn yield and participate in governance. While the Treasury acts like a protocol-managed bank that earns and provides rewards, the Vault creates and holds C-tokens and holds and farms tokens on the Vertek DEX. As for the Portfolio, it manages revenue streams and helps pay for platform and ecosystem operations.
By simply holding and locking CLF liquidity pool positions, investors can earn steady and recurring on-chain yields and rewards for their investments. These include fractionalized earnings from the Portfolio, Vault, and Treasury. Participants can earn rewards based both on how long they lock their tokens and how long they have participated in the system, which guarantees safety and earnings for the platform’s most committed and active members.
Collective Finance has just announced its presale of C-tokens that will provide widespread access and inclusion to new users via a 10% discount on new tokens issued during the presale. With substantial amount already raised in angel funding and with funding doors soon to be open to the public, Collective Finance will provide the CLF token as well as liquidity tokens so that investors can quickly join liquidity pools without having to first sell their CLF tokens to obtain the BTCB tokens needed for adding to the liquidity pool.
The entry minimum for the presale is only $50, with investors who contribute $1,000 or more receiving a limited-edition NFT for every $1,000 invested. These funds will be used to create liquidity and facilitate governance.
In this way, C-tokens are a novel way to create a liquidity solution for commodities in DeFi where reliable exposure to commodities is almost non-existent. If users have access to the right liquidity pools, portfolios, and digital representations of real-world commodities, there is no limit to the value that can be generated. In building this system, Collective Finance is not only closing significant gaps between DeFi and traditional finance but is opening the door to an entirely new sector of traders, investors, and other users.
To learn more about Collective Finance’s presale or to review the project whitepaper, please visit here.