BRUSSELS, BELGIUM / ACCESSWIRE / July 7, 2021 / CocoSwap secured the second place in Coinmarketcap's trending crypto token list on June 17. Coinmarketcap is the go-to platform for nearly 300 million visitors every month who visit the website to check crypto rankings, news, analysis, and much more. A mention on the platform's trending crypto token list proves the token is being noticed by a majority of the crypto world and Cocoswap has managed to do just that in a very short period since launch.
Cocoswap, the next-generation autonomous yield, and liquidity protocol have climbed to the second spot of Coinmarketcap's trending crypto token list on June 17. $COCO was trending in the Asian markets as well which is a significant frat given Asia accounts for the majority of the crypto trades and traders. The native $COCO token would fuel the CocoSwap decentralized ecosystem. $COCO is a progressive deflation token build on the latest DeFi protocol systems. The main goal of the token is to provide decentralized transaction network transactions with a faster time and cheaper exchange fee. The path forward for COCO is determined by market fluctuations. The recent rankings in the top trending chart not only show the growing popularity of the platform but would also help it reach to new user base through a website that boasts hundreds of millions of visitors every month.
How $COCO Managed to Garner Such Attraction in a Short Time Frame.
The deflation token model has worked wonders as it distributes 2% to holders, 2% to token burn, and the remaining 3% of the deflationary transaction to project incentives ensuring the platform sustenance. COCOSWAP tokens are paired automatically with the previously mentioned BNB and added as a liquidity pair on Pancake Swap.
Built on top of the Binance Smart Chain The Coco Swap protocol will enable users to exchange cryptocurrencies, NFT's, and other derivatives through its autonomous yield protocol. The liquidity, on the other hand, will enable seamless and easy staking options for users to incentive the network while earning rewards for their service. The other reason for its popularity is the all-in-one defi and NFT experience that the platform offers. Defi has emerged as one of the most successful use cases over the past couple of years, growing into a $100 billion industry within a year. CocoSwap leverages the functionality of Defi to allow traders on the platform to earn the most by staking and holding onto the $COCO token.
Secret Sauce to $COCO's Success
While there are hundreds of Defi protocols out there in the market, what propelled Cocoswap to the top was its automatic liquidity pools. Liquidity is a big issue for any new defi project in absence of centralized stablecoin inflow like centralized exchanges. Thus defi protocols create liquidity pools where traders stake their tokens for a certain period in return for reward in the form of LP tokens. This form of staking and passive income is also called yield farming. While liquidity could be a big headache for any defi project, Cocoswap's automatic liquidity pools are a secret sauce to its success.
Cocoswap's liquidity pools have a function that acts as a two-fold beneficial implementation for holders. First, the contract sucks up tokens from sellers and buyers alike and adds them to the LP creating a solid price floor. Second, the penalty acts as an arbitrage-resistant mechanism that secures the volume of COCOSWAP as a reward for the holders. In theory, the added LP creates stability from the supplied LP by adding the tax to the overall liquidity of the token, thus increasing the token overall LP and supporting the price floor of the token. This is different from the burn function of other reflection tokens which is only beneficial in the short term from the granted reduction of supply. All of this is an effort to alleviate some of the troubles observed with the current DeFi reflection tokens.
Another factor that plays in the popularity and demand for $COCO tokens is manual burn. While token burns might work as well as not work for many token ecosystems. CocoSwap aims to implement a burn strategy that is beneficial and rewarding for those engaged for the long term.
Static Rewards are the third prominent secret sauce to the success of cocoswap. Static rewards solve a host of problems. First, the reward amount is conditional upon the volume of the token being traded. This mechanism aims to alleviate some of the downward sell pressure put on the token caused by earlier adopters selling their tokens after farming crazy high APY's. Second, the reflecting mechanism encourages holders to hang onto their tokens to garner higher kick-backs which are based upon percentages carried out and dependant upon the total tokens held by the owner.
The Web 3.0 Future
Cocoswap is working to become a core part of Web 3.0 via its platform and upcoming app and platforms. The platform is still in the early stages of development and the background work will be finalized by the end of this quarter.
The third quarter would see the start of COCO Swap alpha development. During this phase, the application will be developed on a closed alpha. Along with the app developments, the platform would finalize exchange listings, and the COCO Swap beta registrations waitlist would be released.
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