The crypto market is still moving in a bullish trend despite regulators’ crackdown on the industry, projects built in the previous bearish season are now unleashing their potential and breaking new highs in the so-called ‘mini bull run.’
Covo finance, a decentralized spot, and perpetual exchange haven’t been left behind in the ubiquitous bullish trend. Following the rapid adoption of decentralized finance (DeFi) after the collapse of FTX, decentralized exchanges have been the new meta that most traders have run to.
And though a decentralized exchange may not be as perfect yet as a centralized exchange given its infant stage, it is still considered the best-decentralized way to trade in DeFi. Covo Finance as a decentralized exchange has gained recognition in the past months.
Reason Behind The Rally
Polygon (MATIC) increasing traction has contributed to the increasing awareness of Covo Finance which has now surged the COVO token price by 110%. Covo is one of the newly launched projects built on the Polygon network. It enables users to trade Bitcoin, Ethereum, and other potential altcoins directly from their cryptocurrency wallets.
Over the past week, the COVO token has spiked nearly 120% on the Uniswap exchange. Covo’s rally can be traced back to the growing popularity of the Polygon ecosystem. Since the beginning of the year, Polygon has not only seen an uptick in its native token MATIC price but also in the adoption of the network.
The launch of the network’s upcoming catalyst, zkEVM which is to launch in March has attracted more users and developers to the network. zkEVM is an upgrade to the Polygon blockchain that will enhance the speed, security, and capabilities of the network.
Run Down On Covo Finance
Aside from being a decentralized exchange, Covo offers services similar to that of Polygon staking, it enables a unique reward-based system whereby COVO token stakers receive 30% of the platform’s generated protocol fees as a reward. The fees are generated in MATIC tokens and Multiplier Points and boost yield without contributing to token inflation.
With an initial max supply of 210 million COVO tokens, a total of 150 million COVO tokens are paired with USDC for liquidity on Uniswap. COVO token stakers earn escrowed COVO (esCOVO) tokens that can not only be staked for rewards but vested for a while. 60 million COVO tokens are kept for rewards vesting from escrowed COVO rewards.
After 12 months of vesting, the vested tokens are converted back into COVO finance making esCOVO finance emission a pattern of locked staking that fends off inflation and people from selling their COVO assets immediately.
