COTI Treasury Launches With Expanded DeFi Capabilities

DeFi fans who are eager to gamble their crypto can now take a closer look at COTI token as COTI Treasury has finally launched in the market with generous APY.

The COTI Treasury is a new development that provides greater functionality when it comes to staking $COTI, the native token of the COTI ecosystem.

For those unfamiliar with COTI, it’s an enterprise-grade fintech platform that likes to call itself the “Currency of the Internet”. It can be thought of as a decentralized payment system that’s set up for merchants and businesses.

One of its goals is to eliminate the concerns many businesses may have with accepting crypto payments. It’s based on the DAG protocol that utilizes a Proof-of-Trust (PoT) consensus to solve scalability issues, meaning it’s capable of processing up to 10,000 transactions per second.

The real attraction of COTI is that companies can use it to create their own branded stablecoin tied to an asset such as the U.S. dollar. By doing this, it removes concerns around trust and volatility that arise from a dependence on traditional cryptocurrencies.

In a statement, COTI CEO Shahaf Bar Geffen said the launch of the COTI Treasury today binds everything into “one coherent ecosystem”, and enables the possibility of extremely lucrative rewards for those who’re willing to participate in the community.

The COTI Treasury is a decentralized, algorithmic pool that makes it possible for community members to stake their $COTI tokens and earn rewards for participating in the network.

It adds a lot of functionality compared to the previous COTI staking system, with users now able to choose exactly how many $COTI tokens they wish to deposit, select a multiplier between 1X and 4X, and then a lock period (either unlocked, meaning they can withdraw at any time without paying a fee, or a maximum of 120 days).

With these choices, users effectively get to choose their own risk/reward ratio. The annual percentage yield of each deposit will be calculated according to its risk factor, which is based on things such as the value of the deposit when it was stake, its current value, the multiplier, and the lock period. 

The way it works is this: The higher the deposit’s risk factor, the higher the APY on offer. However, the risk factor – known as a “Health Score” – is constantly in flux, rising or falling based on the market value of the $COTI deposit.

Should this Health Score ever fall to 1.0, the entire deposit is at risk of liquidation. If that happens, users get a 24 hour grace period to deposit more $COTI tokens in order to increase the Health Score. Otherwise, the deposit is lost (though whatever rewards were earned can still be claimed).

One thing to know is that rewards earned are always unlocked, so they can be claimed at any time. In addition, users can top up their deposit at any time, though that kicks off a new minimum engagement period of 24 hours, during which they’ll be unable to withdraw their deposit.

Users can otherwise withdraw their entire balance at any time (paying an early withdrawal fee if done before the lock period expires). A 0.5% fee is levied on all withdrawals, plus a transaction fee of 0.2%

COTI said the launch of its COTI Treasury is a key milestone on its march to becoming a next-generation financial ecosystem. With it, users finally have a way to stake as much $COTI as they like, for however long as they like, while deciding exactly what level of risk they’re willing to tolerate.

We are excited to exceed expectations with our newly launched Treasury,” Bar Geffen said. “Our commitment is to continue to grow the ecosystem in terms of services, volume, and partnerships to enable lucrative rewards for our users.