Onboarding DeFi Apps on the Cosmos Ecosystem

4 min readFeb 28, 2023

Blockchain and Decentralised Finance are quite familiar terms today. However, both terms are mostly misunderstood. The former would be said to be an advanced database mechanism that allows transparent information sharing within its network. A blockchain database stores data in blocks that are linked together in a chain. The latter (DeFi) is a peer-to-peer finance system or network that is powered by decentralized technologies. In other words, it is actually the shift from a centralized or the traditional financial system to a more decentralized and peer-to-peer network. With this, individuals can lend, trade, and borrow using software that records and verifies financial actions in distributed financial databases.

With the advancement in blockchain technology, we are also seeking better ways to build autonomous organisations, social networks, marketplace, NFTs, and gaming on the blockchain. The Cosmos blockchain and its networks, over the years, have worked hard to make all of these a reality.

The Cosmos Network

Cosmos network is an ecosystem of independent interconnected blockchains built using developer-friendly application components and connected using Inter-Blockchain Communication (IBC) protocol.

Basically, Cosmos IBC protocol solves issues associated with blockchain interoperability by creating protocols for communicating arbitrary data between arbitrary state machines.

Crypto and CeFi-related Problems

2022 has been a rough year for the crypto markets as we have seen major cryptocurrency projects like Celsius, Terra Luna, Voyager, and many other projects crashed or failed.

For instance, Celsius Network, a crypto lender, froze withdrawals and other transactions on its platform, citing “extreme market conditions.” Celsius was one of many neo-banks that lended and borrowed money and digital assets, but on July 13, they finally filed for bankruptcy.

Events such as these tend to put blockchain technology in the negative light, but what could have been the reason for their crash? It’s because these projects were not built to offer decentralization to its consumers.

FTX, a centralised exchange, filed for bankruptcy on Nov. 11, 2022, after a surge of customer withdrawals earlier in the month. Thereafter, CEO Sam Bankman-Fried admitted that the company didn’t have sufficient assets in reserve to meet customer demand.

In the midst of all of these we have seen success of truly decentralised protocols such as the synthetics protocol GMX. GMX has risen steadily in Total-Value-Locked $100M to $500M. GMX is a decentralised application providing access to perpetuals, which are basically on-chain derivatives.

The Cosmos blockchain and its network have a strong developer ecosystem and is set to launch its native stablecoin, $CMST, which is already live for minting. Announcements have also been made that USDC is coming to Cosmos. You can read about that here. This would make Comos the best place to build your DeFi applications.

Bringing DeFi to Cosmos

DeFi will continue to play a big part in crypto after the widespread mismanagement of user funds by centralized exchanges, with spillover effects that will lead to new DeFi trends.

This year, new DeFi trends include increased adoption of real-world assets onto the blockchain, increased interest in non-custodial dApps, new developments in derivatives and options, DeFi scaling solutions such as L2 rollups and Cosmos app-chains, and more.

You might want to know why build DeFi apps should be built on Cosmos. This is because cosmos as a blockchain is interoperable with other blockchains using inter-Blockchain Communication (IBC) protocol and with this, blockchains will be able to communicate seamlessly and securely with one another.

Also speaking of cosmos app-chains we have the Comdex blockchain which is a Defi infrastructure layer for the Cosmos ecosystem. Comdex democratizes finance through its DeFi infrastructure layer with a suite of DeFi products. The chain houses plug n-play modules built on the core primitives of finance, enabling the launching of DeFi apps. This allows DeFi applications to be built on Comdex.

Some DApps in Comdex’s Ecosystem

Below are some of the dApps that have been developed on Comdex:

  • cSwap: This is a decentralized exchange built on the comdex network. cSwap’s liquidity farming is one way users can contribute maximum value to the protocol and earn rewards in return.
  • Enterprise Trade: This is going to be a B2B application and it is built to tokenize real-world commodity assets and facilitate instant trade, settlements and financing.
  • ShipFi: This is a digitization & exchange of ownership of commodity trade finance debt built on the comdex chain. This DeFi app will act as a bridge between decentralised finance and centralized finance. I know you’re excited about this so let’s look forward to when it will go live on the Comdex chain.
  • cAsset: This is going to be a synthetics application which will enable the creation and exchange of synthetic assets using IBC-enabled assets as collateral.
  • Commodo: An IBC-native collateralised lending protocol the Commodo protocol is very important because for us to have a functional DeFi ecosystem then we must have secure and efficient money markets.
  • Harbor: This is the platform responsible for the minting of the overcollateralized $CMST stablecoin which will serve as the stablecoin of the Cosmos ecosystem.

Those DApps offer all kinds of services that could be required in the DeFi space. Protocols can go ahead to build their decentralized applications on Comdex.

About Comdex

Comdex develops possible solutions for the decentralization of finance (DeFi) and the democratization of commodities by handing investors the knowledge of a widened scope of asset classes with rewarding features.

For more information and to stay connected with Comdex, you can use the links below:

Website | Twitter | Telegram | Medium




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