An insight into the minds behind the project
Recently the CORE Vault developer team consisting of 0xRevert and X 3 have held a community AMA, answering a wide variety of questions regarding their project, the vision behind cvault.finance and the ambition to change the DeFi space entirely.
🛰️ The mission of CORE
The incentives of DeFi and farming various tokens have been flawed and short minded. The mission of CORE is to change that. Currently minting tokens to pay people farming is a trend largely spreading through the DeFi space, sadly people do not understand that it is not sustainable.
📉 The creation of Deflationary Farming.
Each transfer of the CORE token (and therefore trade on Uniswap) has a 1% fee attached to it. This fee goes directly to the farmers.
The Deflationary Farming mechanics of CORE were able to generate, in the first day, $1,000,000 in CORE for people staking the LP tokens and $100,000,000 of Volume. All of this without creating a single coin.
The main goal for the team is to offer strategies to people in DeFi who are looking for new farming opportunities. In the past, projects have been creating these pooled assets to do this quite effectively, however there has been an underlying issue with the distribution.
Inflating coins in order to issue farming rewards has a negative pressure on the price. It will decline as the inflation fails to keep up with the hype. This is why so many coins fail after just a few days.
The team behind CORE was able to lock up all added liquidity into Uniswap, by using a interesting bit of code. This has solved another issue which has been plaguing many different projects in the DeFi space.
Fly-by-night whales who just want to get yield on their money and do not care about the underlying project.
The team believes that maintaining a solid yield over a few years rather than a few days is a necessary step to grow the DeFi space further.
💻 The unique tokenomics of CORE:
CORE creates incredible synergies between people farming the project and traders. On one side the farmers provide locked liquidity, increasing the price floor due to its fixed supply, on the other side we have the traders who are charged a fee on token transfers (trades on Uniswap). This is a unique setup that the developers of CORE have created.
🛸 0xRevert & X 3's past, present and the future
Have been involved in traditional software development as well as having observed several different DeFi project rise and quickly fall, the team behind CORE has learned from mistakes that other projects have made. This inspired them to build, the first of its kind, project where incentives are aligned between farmers and traders.
Many of the “Food”- named Coins in the past, have gone in to hyper-growth of TVL, and shortly after, failed catastrophically. This is due to them not having a purpose to the project, no outside source of income to those staking TVL as well as a hyperinflation of the coin.
According to 0xRevert, many of these projects ignore the trading action which is a big mistake. It is an integral part of DeFi which needs to be accounted for in the system.
💾 CORE — the unruggable project:
The launch of CORE could be one of the fairest launches in this space, by utilizing a so called “Liquidity Generation Event”.
The CORE contract started accepting ETH for a week. After that all the ETH and 10,000 CORE went straight to Uniswap to be traded and locked itself in liquidity, without the team ever holding the tokens. This created a price floor.
0xRevert: “This has never been done before, it's a concept we came up with. After seeing people saying they are doing a pre-sale to generate liquidity and then rewarding people tokens for it. All that means is pre-salers dump on everyone, and the project dies.”
🐺 The “black sheep” of Uniswap
Uniswap pays 0.3% per each swap into the LP tokens as a fee. Due to CORE LP tokens being locked, they keep getting more valuable inside the pool while the liquidity is increasing. The fixed supply of coins allows the price floor to grow.
Due to the design of CORE, adding liquidity is a big commitment,which upsets the balance of Uniswap. Usually people add liquidity and slow price swings.
However with CORE, the price looks to be volatile, it seems like people are moving it around all day, generating high volume. This benefits the farmers, because Volume=Fees.
📈 Organic growth, exchange listing, short & long term goals of CORE
According to X 3, Governance control is the next big step towards enabling self-executing strategies. These initial governance options should be coming available in the next coming weeks.
He is also working on making it more difficult for liquidity to be reduced. The team is working on an update which solves an issue many in the community are concerned about.
X 3: “Right now, a user can remove liquidity from Uniswap if someone adds that much liquidity or more just before them. After this update, that will no longer be possible, and the system can continue to function as intended.”
Due to the massive volume of CORE and its hype, a lot of exchanges are observing this project. Centralized exchanges chase high volume which makes a listing very likely.
Long term goals of CORE are to grow the community and project via top execution strategies.
💱 Automated Strategy Vaults, solid Governance
0xRevert: “Automated strategy vaults will generate yield for different staked coins, and pay out in CORE.
This has 2 effects — increases the volume, because of the automated buys — And even if people don’t want the CORE tokens paid out, they will have to pay farmers the 1% tax to sell it.
Our governance is made to be the strongest and most involved in DeFi because people are hardCORE and locked in for life. This goes back to the previous concept of skin in the game.
No-one gives a shit about governance currently in other coins, and only does it for a reward. People who truly care about the systems long term viability — the locked in farmers — will be receptive to guide it”
Governing any project takes time, research and effort. The current sentiment of governance does not promote loyalty. People can always choose to remove their LP and leave the project. With the tokenomics of CORE the LPs are locked up forever, promoting LP token holders to govern and lead the project forward rather than abandoning it.