Welcome to Coral Finance
An innovative derivatives trading platform that generates leveraged yield
Coral Finance is the first omni-chain and omni-asset derivative staking protocol with an innovative and unique mechanism called Premium Trading. It offers crypto projects a reliable and non-inflationary staking/liquidity aggregation solution to sustainable development, and upholds core values for users such as asset growth, risk management, and capital efficiency. RWA assets, like stocks, will be introduced via Premium Trading to drive liquidity and TradFi user growth in the long run.
Whether you're a seasoned trader or new to the space, Coral Finance has something for everyone. Join us today and experience the power of premium trading.
What Is Premium Trading?
The economic world of Web3.0 is made up of a lot of transactions that are driven by human nature. Ubiquitous, inevitable and gigantic. Transactions produced in Web3.0 are not limited to parallel migration of traditional financial businesses, but also from innovative mechanisms that boost productivity and capital efficiency in an open and decentralized economy. This is what makes Coral Finance so exciting. It brings a premium trading model as a new engine of economic growth.
Premium trading is an innovative trading mechanism that aggregates liquidity to achieve efficient market making and allows users to trade crypto assets at higher prices. By introducing a derivative token, cToken which is minted from native token at 1:1 ratio, you are able to gain leveraged yields. The leverage varies and can be set up with a wide range.
This comes with many benefits. Having the ability to trade cryptos with leverages has the advantage of accumulating sustainable liquidity over the protocols to reward liquidity providers with tokens that produce irreparable inflation. Premium Trading also extends the lifecycle of cryptos, as well as the projects by offering a useful scenario that improves tokenomics building.
The biggest benefit is that it magnifies the aggregating trading volume of crypto markets to a much bigger scale, whereas otherwise, the volume would be stagnant to increase due to products, like perpetual and futures with a zero-sum game. The magnified trading volume brings deep liquidity and diverse financial composability.
What Is Premium Pool?
Premium pools are the backbone of the premium trading mechanism on Coral Finance. Users earn high-yield returns by providing liquidity to pool and trading cTokens at a premium. In other words, premium pools operate by locking up assets to generate returns for liquidity providers. The premium is the difference between the returns generated by the pool and the returns that would have been earned by simply holding the assets.
Who Are Participants?
There are two major participants involved in Coral Finance.
Traders
Traders are the central participants in the Coral Finance DEX. They find the best prices and execute trades. In addition, traders may also pay or receive funding payments based on the funding rate. Trading on Coral Finance can provide opportunities for profit through market movements and price differentials.
Liquidity Providers
Liquidity Providers (or LPs) are participants that deposit assets into a premium liquidity pool, in order to contribute to the inventory that will then be paired and deployed as liquidity. And they earn premiums as yields from trading cToken on cSwap area.
At Coral Finance, we built our platform to address some of the most pressing issues that the DeFi industry has been facing. One of the most significant issues is the problem of bubble economies, where token prices can be subject to wild fluctuations and overinflation. This can lead to a "death spiral," where prices drop rapidly, leading to a loss of confidence and further drops in price.
To combat these issues, we've developed a new incentive mechanism called premium incentive mechanism (PIM) that encourages user participation without producing inflation. This mechanism helps to stabilize the market by creating a more sustainable flow of liquidity to prevent market bubbles.
We've also focused on improving capital efficiency and boosting user yields. Coral Finance provides users with greater opportunities to earn passive income through liquidity provision and trading, while also ensuring that they are protected against risks such as impermanent loss.
In addition to these core features, we continue to work on developing new tools and services to improve the DeFi ecosystem further. We believe that by addressing these key issues and developing innovative solutions, we can help to create a more stable, efficient, and accessible DeFi marketplace for everyone.
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