II. CoinWind Whitepaper
Background Introduction
Judging from the current status of DeFi projects, products such as lending, DEX, and income aggregators have indeed met the real needs of current users, and each field’s leading project’s market value has increased with their platform token price increased. For the traditional brokerage business industry, a platform can allocate across in multiple products, which can greatly increase the utilization rate of funds. Also, this creates huge market value and a good reputation for the brokerage. From this perspective, DeFi revenue aggregator products are bound to become one of the important infrastructures for decentralized financial applications.
DeFi aggregation products mainly aggregate capital pools with high yields for users and automatically optimize their portfolios so that users can obtain optimal returns. In other words, the aggregator can help users redeploy assets automatically, and can also automatically switch to high-yield mining pools to help users increase their mining efficiency.
However, we also found that DeFi mining market has the following three main pain points:
1. Single token mining/loan income is low
Generally, DeFi projects will temporarily open a single token mining, but the income is very low, usually the APY is between 1% and 10%, which is similar to traditional investments. Some lending platforms can increase the interest rate of single-token lending, but the return is at most about 3%-15%. At the same time, once the loan is out of liquidity, it is difficult to withdraw it in time.
2. Impermanent losses in liquidity mining:
Liquidity mining currently has high returns, but because of price differences between different fund pools, some liquidity arbitrageurs will "move the price" until the price of the trading pair is restored to the initial ratio, and profit from such acts. This profit earned by these third parties is paid for by all liquidity providers.
3. User operation threshold is high:
Users need to perform asset conversion, select fund pool to stake, purchase and redeem, etc., which have certain thresholds, and some users lose assets, buy fake coins, transfer to the wrong address, etc. during complex operations.
The CoinWind team has been focusing on the direction of blockchain DeFi and contract development. After the HECO became popular, the team quickly studied the current ecological value and determined the direction of empowerment. They completed the contract development, audit, and online work for more than one month. For other projects on the market, many projects are only positioned as "yield farms", mining on behalf of users, and not responsible for users’ impermanence loss. CoinWind is positioned as DeFi's financial management platform, not just a tool aggregator.
CoinWind Introduction
CoinWind is a DeFi intelligent financial platform that automatically matches the staked tokens through contracts, and cooperates with the strategy of hedging impermanent losses to maximize users’ benefits, effectively solving the problems of low single token mining income and LP impermanent loss.
CoinWind aims to build a DeFi digital asset bank, launch a product that combines high-yield and safety and reliability, pooling different tokens deposited by users into different pools, and then mobilizing funds from a certain token pool to participate in different liquidity according to different strategies. Which ultimately achieves higher returns for users. CoinWind products will effectively reduce the impermanent loss in liquidity mining through diversification of strategies.
CoinWind was first launched on HECO on February 22nd, 2021, and the highest total locked-up volume (TVL) exceeded $3.3 billion on May 12th, 2021.
Up to now, CoinWind has been running on three networks: HECO, Binance Smart Chain (BSC), and Ethereum (ETH). In the future, CoinWind will run across multiple main chains such as OKEXchain, Polygon, Solona, etc.
CoinWind Advantages
1. Maximize Revenue:
CoinWind aggregates blockchain network protocols, formulates optimal strategy combinations based on multi-dimensional algorithms, and automatically switches funds to higher-yield DeFi projects for liquidity mining;
2. Single Token Mining:
CoinWind’ users only need to deposit a single token, and the smart contract will automatically match the high-yield liquidity mining fund pool;
3. No Loss of Principal & Deposit and Withdrawal at Anytime:
CoinWind helps users automatically hedge against the impermanent losses in liquidity mining through a combined mining strategy; the principal is non-destructive, deposit and withdrawal at any time, deposit a single token to enjoy the benefits of LP mining high return;
4. Save Time and Money:
After users deposit a single token into CoinWind, they can obtain benefits without other operations. In addition, any rewards earned are automatically deployed and compounded, while greatly reducing the user's gas fees, time, and other costs;
5. Simple Operation:
Product design and operation are convenient, CoinWind users can participate in DeFi aggregation mining with one click;
6. Featured Projects:
CoinWind will conduct professional research on numerous liquid mining projects in the market, and choose safe, reliable, and high-yield projects only, so that users can enjoy the benefits of mining for the first time;
7. Secure and Reliable:
The CoinWind smart contract has undergone multiple audits to ensure all assets security on CoinWind platform;
8. Multi-chain Deployment:
Right now, CoinWind has launched on three mainchains: HECO, BSC, and ETH. Assets can be deposited into CoinWind without cross-chaining to obtain more revenue scenarios.
CoinWind Technical Features
1. Innovative income calculation model, real-time user income settlement, dynamic update of the rate of return, automatic compound interest, etc.;
2. The strategy mode is connected to the mining platform, with strong scalability and adaptability;
3. Excellent contract compatibility, the same architecture supports multiple mining modes (single token mining, dual token mining, LP mining, multi-chain mining);
4. The code is stable, advanced, and highly secure, and has been audited by multiple audit platforms;
5. Intelligently optimize the allocation of mining funds and mining strategy to automatically maximize the mining revenue;
6. Combine multi-platform DEX real-time token prices and automatically select the best price settlement rate of return.
CoinWind Business Model
Users may stake a single token to obtain token rewards for providing liquidity to various third party protocols via the platform. The platform uses strategies to mine the fund portfolio for liquidity mining, and cooperates with the impermanence hedging strategy to reduce losses, and obtain greater efficiency for users and the platform.
How does CoinWind hedge against impermanence losses?
Users only need to deposit a single token when they come to CoinWind, and the smart contract will automatically match the high-yield liquid mining capital pool and help users automatically hedge against the impermanent losses in liquid mining through a combined mining strategy. At
the same time, CoinWind's own funds will maximize the reduction of the impermanence of LP pools through liquidity hedging, so as to ensure greater efficiency in the market for users.
How does CoinWind liquidity hedging work?
CoinWind can automatically monitor the LP pools’ price and the constant product to complete the hedge, which can ensure that impermanence is minimized. For example, USDT and BTC liquidity pool, when the price drops, there will be more BTC in LP and less USDT, and CoinWind will automatically sell the corresponding BTC in exchange for USDT.
CoinWind Redeployment Mechanism
Every 5-10 minutes, the contract will redeploy the income generated by mining into selected projects, and the new income generated will be redeployed again, which can improve the efficient use of income funds and reduce manual operations for all users. This automated redeployment mechanism saves users' time and money (mining fee). The redeployment is carried out with income, and the income will continue to accumulate.
Compared with manual redeployment, the advantage of aggregating and automating the process is to save users time and cost. During the redeployment period, users do not need to pay gas fees again, and the contract will automatically redeploy every 5-10 minutes which is much more frequent than manual redeployment. Therefore, there will be less wastage on fees.
Compound interest is a process of quantitative change leading to qualitative change. You can refer to the compound interest curve.
CoinWind Platform Token $COW Introduction
The native digital cryptographically-secured fungible token of the CoinWind platform (ticker symbol COW) is a transferable representation of attributed governance and utility functions specified in the protocol/code of the CoinWind platform, and which is designed to be used solely as an interoperable utility token on the platform.
COW has a total initial supply of 100,000,000 tokens. CoinWind conducted the initial public offering of COW on three platforms: MDEX, WeStarter, and Helmet on May 25th, 2021, with an issue price of $0.5 and a total of 3,240,000 pieces of COW.
COW does not in any way represent any shareholding, participation, right, title, or interest in the Company, the Distributor, their respective affiliates, or any other company, enterprise or undertaking, nor will COW entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in Singapore or any relevant jurisdiction. COW may only be utilised on the CoinWind platform, and ownership of COW carries no rights, express or implied, other than the right to use COW as a means to enable usage of and interaction within the CoinWind platform.
COW Economic Model
65%: Will reward through platform mining, halved every year
15%: As Team Reward, used for technology research and development and marketing operations, will be unlocked 6 months after project launched and will be unlocked monthly for 12 months by smart contracts
10%: As Early Purchaser's quota, it will provide CoinWind with sufficient resources and strategic relationships, which will be unlocked 6 months after project launched and will be unlocked monthly for 24 months by smart contracts
5%: Foundation Share, mainly used for liquidity hedging and market making funds
3%: Used for the MDEX.COM platform to conduct IMO, as a token for the first time to open a new quota to give back to users and the community
2%: As a market operation quota, it is mainly used for event operation, marketing and brand building
COW Mining Reward Output Model
Note: COW mining reward output will be halved annually
COW Incentive Mechanism
Liquidity Mining
The CoinWind platform itself is simply a blockchain protocol which, by design, does not offer any resources for utilisation, so for the protocol to perform its core function, users would need to be incentivised to play the role of liquidity providers and stake their digital assets into the decentralised market making pools to provide the necessary liquidity for transactions. As compensation for opportunity costs, these liquidity providers which help to promote adoption of the CoinWind platform by staking or including assets to liquidity pools in exchange for LP tokens would be rewarded with COW (i.e. "liquidity mining" on the CoinWind platform), according to each user's relative contribution after various adjustment and correction parameters.
Currently, the pools that support liquidity mining / staking are:
BSC Chain: COW single token pool, COW-USDT LP pool HECO Chain: COW single token pool, COW-USDT LP pool
Currently pools are not locked, and users can withdraw at any time. If the withdrawal rules are not met, CoinWind will charge a certain amount of principal as an appearance fee. The appearance fee will be allocated towards the incentive pool for active contributors.
Token incentive rewards
COW provides the economic incentives which will be distributed to encourage users to contribute to and participate in the ecosystem on the CoinWind platform, thereby creating a mutually beneficial system where every participant is fairly compensated for its efforts. COW is an integral and indispensable part of the CoinWind platform, because without COW, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on the CoinWind platform. Given that additional COW will be awarded to a user based only on its actual usage, activity and contribution on the CoinWind platform and/or proportionate to the frequency and volume of transactions, users of the CoinWind platform and/or holders of COW which did not actively participate will not receive any COW incentives.
COW Usage Scenarios
1. COW holders will be entitled to participate in CoinWind by depositing single token (i.e. single token mining), and receive COW rewards for user engagement.
2. You can obtain DEX platform token rewards by providing LP liquidity in DEX such as MDEX.
3. COW users will be entitled exclusive access to partner projects and participate in their marketing activities, which may entitle them to participation rewards (airdrops) of such other project tokens.
4. COW would allow holders to propose and vote on on-chain governance proposals to determine future features of the CoinWind platform (the right to vote is restricted solely to voting on features of the CoinWind platform; it does not entitle COW holders to vote on the operation and management of the Company, its affiliates, or their assets or the disposition of such assets to token holders, or select the board of directors of these entities, or determine the development direction of these entities, does not constitute any equity interest in any of these entities or any collective investment scheme; the arrangement is not intended to be any form of joint venture or partnership).
5. As a loyalty reward, users holding COW token will be entitled to access to certain exclusive products/services in the high-yield zone.
6. CoinWind will design the NFT platform in future, and COW will serve as the native platform currency for all peer-to-peer NFT transactions thereon.
Roadmap
2021 Q1
● HECO single token mining (√)
● Support BSC chain (√)
● Income redeployment strategy (√)
2021 Q2
● Launch COW strategy (√)
● Support one token double mining (√)
● Platform UI 2.0 upgrade (√)
2021 Q3
● Support Ethereum network (√)
● Launch DAO (√)
● Optimize miner fees (√)
● COW token contract management (√)
● Single token high-yield area (A/B, In progress)
○ A: Single token project
○ B: Hold/stake COW, deposit single token farming projects
● Multi-language support (In progress)
● Launch on OEC (To be started)
● ETH mainchain supports DAO (To be started)
2021 Q4
● Voting and governance (holding a certain proportion of COW/COW LP, you can initiate proposals, vote, participate in platform governance, and add new pools, adjust pool output, platform revenue sharing ratio, etc.)
● Open source project contract code
● NFT development (IP cooperation, building NFT trading platform, COW application scenarios on NFT platform)
CoinWind Future Plans & Directions
1. Become the No. 1 of the Revenue Aggregation Field:
Continuously optimizing the underlying LP matching strategy and liquidity hedging strategy to improve the overall efficiency of the platform and users; deploy on more mainchains, support more underlying protocols, and increase the overall platform capital volume. To attract more users and more assets to CoinWind. Our goal is: by the end of 2022, we will become the No. 1 in the revenue aggregation field.
2. Create a Defi Comprehensive Platform Ecosystem:
Create a comprehensive platform that integrates the DeFi ecosystem with revenue aggregation, loan, NFT, cross-chain, derivatives, and other businesses, and continues to provide users with high-yield scenarios. Through CoinWind, users can easily get through all DeFi infrastructure in one stop.
3. Introducing Real-world Assets Into the Defi World:
Using NFT as the asset medium, the physical assets in the traditional world are converted into on-chain NFT (non-homogeneous tokens) on the chain, and converted mainstream assets into DeFi through loans, thus realizing the connection between real- world assets and the DeFi world. We believe that in the next ten years, the integration percentage of traditional finance and DeFi will become higher and higher, which will bring exponential user and asset growth to the DeFi world.
Project Vision
CoinWind will continue to build a comprehensive platform that integrates the DeFi ecosystem with revenue aggregation, lending, NFT, IDO, and other businesses, and will continue to provide users with a greater selection of leading products and services.
Coinwind's Goal Is to Build a World-renowned DeFi Ecological Digital Asset Bank
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