Cryptex Finance (CTX) is an innovative crypto products provider. The network’s main offering is an all-inclusive market cap coin. Cryptex Finance is the first firm to attempt such a task. The goal of the project is to provide interested traders with real-time price exposure. This approach equips traders with the ability to speculate on the total crypto market rather than a sector or particular project.
How Does Cryptex Finance (CTX) Work?
CTX provides Cryptex Finance with a viable community governance system. This system can be used to control the issuance of TCAP which is the token that tracks the total market capitalization of the crypto market. CTX provides more transparency to users and ensures that the project continues to accurately represent the entire cryptocurrency complex by total market capitalization.
Cryptex leverages Chainlink’s decentralized oracles and five data points to stay up to the minute on pricing. Oracles are off-chain sensors that have the ability to communicate data in real-time to and from blockchains. Notably, Cryptex leverages nine different oracles to provide a high level of redundancy to the system.
What Problems Does Cryptex Finance (CTX) Solve?
Cryptex Finance wants to make investing in the decentralized economy easier than ever. The protocol leverages an open-source infrastructure and advanced financial solutions to accomplish its goals. Today, it operates as one of the only investment vehicles where you can trade the entire crypto market cap.
Lack of Security
One of the biggest concerns for funds in the past is security. Cryptex Finance tackles these issues in a couple of different ways. First, the protocol has undergone numerous third-party audits. Additionally, CTX tokens remain over collateralized. Specifically, they are backed by 200% of their value.
Exclusivity
Prior to the introduction of DeFi, the financial sector was very exclusive. The best investments were left to professional and accredited investors. This scenario built up an invisible wall that kept the average trader from profiting. Cryptex enables anyone to mint TCAP.
The protocol is open to the masses to create vaults, approve vaults, and collateralize assets. Users earn returns for their participation based on the amount of liquidity they apply. This approach falls in line with DeFi’s goal to reach the unbanked of the world through a more open entry process.
Lack of liquidity
Many DeFi platforms suffer from a lack of liquidity in today’s market. Their lack of liquidity is the result of a shattered DeFi sector. There are many different networks but most lack the ability to communicate with one another seamlessly. One way in which Cryptex Finance helps to solve liquidity issues is through the use of SushiSwap. SushiSwap is one of the largest and most well-recognized DEXs in the market.
Benefits of Cryptex Finance (CTX)
There is a long list of benefits and reasons why joining Cryptex Finance could be the right move for you. For one, if you seek full exposure to the crypto market in a single asset your options are limited. The CTX token empowers traders. It also provides governance to the entire Cryptex Finance system.
The TCAP token provides investors, traders, funds, and DeFi users full exposure to the total crypto market capitalization in a way that was previously not possible. The protocol integrates powerful Chainlink Oracles to ensure the pricing is accurate. This approach is ideal for both experienced investors and those new to the market seeking an easy-to-manage asset.
Passive income
There are multiple ways that Cryptex Finance users can secure returns. They can earn fees by minting TCAP tokens and using the Single Side CTX Staking features. This feature provides some major benefits compared to the competition. Notably, this taking protocol has no lock-up periods. There is a short 7-day minimum staking period. If you pull your tokens out before this time, you forfeit your rewards.
Another easy way to secure low-risk passive income is by adding liquidity on decentralized exchanges. Users who participate in TCAP liquidity pools on SushiSwap earn a portion from the transactions fees. Lastly, you can always leverage arbitrage opportunities within the DeFi space to drive ROIs.
Vaults
Cryptex Users can secure returns by creating or participating in liquidity pools called vaults. Each vault has different trading pairs. Vaults are open to the public and require no KYC to participate in. You simply connect your wallet and you’re ready to start earning with your vault.
FARM
Cryptex Finance also supports DeFi farming. Farming is like staking in that you provide liquidity to a pool in exchange for rewards. The main difference is that farming pools have varying APYs and future no pre-removal penalties. They require a little more monitoring from traders but can be very profitable if managed well. Users can Mint TCAP tokens, join farming pools, and stake LP tokens using the network’s services.
CTX
CTX is the main governance token for Cryptex Finance. Holding CTX is the only way you can gain access to voting rights on Cryptex. The more CTX in your possession and the more weight your vote will hold. This strategy ensures that only those thoroughly vested in the platform gain a say in future developments. Since they have the most to lose, it’s reasonable to consider they will act in a manner that is prosperous to the project.
TCAP
TCAP is among the first total crypto market cap tokens to enter service. This unique financial instrument enables large firms, traders, and investors to finally speculate on the total market. This strategy is ideal because it requires less research and lets people benefit from all the best developments throughout the year as the total market cap grows.
Bottom Line
You got to hand it to Thomas Matzner, Cryptex’s co-founder, and the rest of their team on creating a helpful way to join the blockchain revolution. Cryptex is ahead of the curve on its TCAP token. It will be interesting to see what other cool tokens this team comes up with in the coming weeks as the protocol expands its features. For now, Cryptex Finance has succeeded in creating an entirely new type of token.
