COTI ecosystem participants have more advanced staking options now with the launch of the long-awaited COTI Treasury.
With today’s launch, it is now possible to stake any amount of $COTI tokens into the COTI Treasury and earn rewards with an extremely generous annual percentage yield, though doing so is not always without risk.
The launch of the COTI Treasury is a big step on the road towards COTI’s goal of becoming a fully-fledged financial ecosystem, giving community members much greater flexibility over the way they can participate and earn rewards. Users will be able to decide, for example, exactly how much $COTI they wish to stake, how long they want to stake those tokens for, and the level of risk they’re willing to accept. This is performed using options not available with the previous Staking 3.0 system, such as an APY multiplier, compounding rewards mechanism and more.
The COTI Treasury is an algorithmic and decentralized pool that allows users to stake $COTI to validate transactions on COTI’s network and earn rewards for participating. The pool is expected to grow over time as fees are paid by network users to validate their transactions. Each user who deposits $COTI into the Treasury is entitled to a share of those fees.
Users who deposit any amount of $COTI into the Treasury will first be required to select a multiplier, which is used to calculate their APY, and lock period, or the minimum period of time their tokens will be locked up for. Once that’s done, an individual APY for each deposit will be calculated, based on the deposit’s risk factor. Users can opt for zero risk with a X1 multiplier, or else they can go all for nothing with a X4 multiplier that will generate massive APY but also high risk that the entire deposit will be liquidated.
Whether or not a user’s deposit is liquidated depends on their “health factor”, which is calculated by factors including the deposit multiplier, plus the deposit’s original value and current value. For those who select the lowest X1 multiplier, the health score is not applicable. Choose a 2X multiplier for higher APY though, and the health score is set at 3.0. For a 3X multiplier the health score drops further to just 1.5. What’s key to remember though, is that the health score changes constantly as the value of $COTI ebbs and flows – and if the health score falls below 1.0, the entire Treasury deposit will be liquidated, meaning it’s gone forever (though the user will still be able to claim whatever rewards they earned during that time).
There is no pain without gain though, and the COTI Treasury is flexible enough to satisfy every investor’s risk appetite, with potentially very generous returns available to those who’re willing to accept higher levels of risk.
Other advantages of COTI Treasury include being able to claim rewards at any time, and the ability to earn additional rewards based on APY that equals the unlocked deposit with a 1X multiplier. Users can also top up their deposits at any time and withdraw them whenever they wish, though fees will be applied in the event they withdraw their tokens while still in the active lock period.
COTI Chief Executive Shahaf Bar Geffen said the launch of COTI Treasury marks the beginning of a new era for COTI as it bids to become the “currency of the internet”.
“The Treasury binds everything that we do at COTI into one coherent system,” he said. “Our commitment is to continue to grow the ecosystem in terms of services, volume, and partnerships to enable lucrative rewards for our users”.
COTI said the launch of the Treasury is just the start, with more features planned to be added later in the year, including calculators and automatic processes that aim to make it more seamless and user-friendly. COTI is also working on a cross-chain fee mechanism so fees earned from other COTI products will also go to the Treasury, increasing rewards for everyone.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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