CVault.finance (CORE)

CVault.finance

Type	Deflationary Yield Farming
Total supply	10.000
Website	https://cvault.finance/

 Basics

• Announced on:
• Mainnet release:
• From their blog (18-9-2020):

"CORE is a non-inflationary cryptocurrency that is designed to execute profit-generating strategies autonomously with a completely decentralized approach. In existing autonomous strategy-executing platforms a team or single developer is solely responsible for determining how locked funds are used to generate ROI. This is hazardous to the health of the fund as it grows, as it creates flawed incentives, and invites mistakes to be made. CORE does away with this dynamic and instead opts for one with decentralized governance."

How the governance will be done is still (4-1-2021) unclear.

Token

Token allocation

• From their introduction (18-9-2020):

"The CORE team is kickstarting the initial distribution with a liquidity event. Contribute ETH to the CORE Fair Launch smart contract to receive tokens, and the contributed ETH will be matched and added to the Uniswap liquidity pool. Note that once added, liquidity tokens can not be removed from the CORE Uniswap LP pools. This is by design."

Utility

• From their blog (31-10-2020):

"Each transfer of CORE has a 1% fee attached to it. 93% of this fee is collected by the staked LP token holders and 7% goes to the dev fund. A positive feedback loop is generated when LP stakers sell their rewards. They generate additional fees which lock up more liquidity and drive up APY. An increase of APY attracts additional minting of LP tokens which increases the TVPL as well as the value of the next liquidity addition."

• From their Github (9-12-2020):

"CORE tokens holders will be able to provide strategy contracts and vote on what goes live and when, in order to decentralize autonomous strategy execution. 5% of all profits generated from these strategies are used to auto market-buy the CORE token."

Token Details

• From their blog (31-10-2020):

"While CORE has a limited supply of 10,000 coins, it also has the possibility of minting new kind of tokens inside the ecosystem — CORE Liquidity Tokens (LP Tokens). These create a market inside of CORE, promoting trade and speculation between LP token holders."

Technology

• Whitepaper can be found [insert here].
• Code can be viewed here.
• Built on: Ethereum, ERC-95

How it works

• From their blog (31-10-2020):

"We created a permissioned ecosystem of locked liquidity, where CORE serves as the key to access this space. Each transfer is charged with a 1% fee which continues to grow the liquidity pool. CORE found a way to assure its value through decentralized permission-less smart contracts. Now that the system started, it cannot be stopped, inevitably locking more and more assets as time goes by. Each additional currency that we add to the ecosystem will indefinitely grow that pool, strengthening CORE’s purpose to gate everything. ERC95 takes advantage of the movements of other coins by mirroring them, allowing the ecosystem to benefit from the volatility and volume created by that. We permanently positioned ourselves in DeFi by modifying the Uniswap liquidity removal process and enabling arbitrage through a second pair.

By wrapping the underlying asset with ERC95, a Prime is created which has the ability to track volume and collect data on average prices as well as weighted average prices. This is used to create “greeks” for setting up automated options markets that are too expensive to manipulate. The data collected by ERC95 is exclusively available to the CORE ecosystem with private functions that only CORE Contracts can call."

Liquidity Mining

• From their Github (9-12-2020):

"The CORE team is kickstarting the initial distribution with a liquidity event.

Our solution is called deflationary farming, and it is quite simple in only two steps:

1. Charge a fee on token transfers
2. Users can earn the fee by farming"

Oracle Method being used

• From their blog (14-2-2021):

"CORE leverages its ERC-95 Standard to set up an environment around the token that is rich in data. The assets in the CORE markets are wrapped into ERC-95 tokens which support native market data like liquidity and volume. Native, as in that data can be queried on-chain. The tokens’ smart contracts are essentially serving as oracles. This functionality is already leveraged by the arbitrage smart contract that constantly trades between CORE’s markets. Now, it will also be used by coreDEX to settle derivatives."

Their Other Projects

Delta Financial

• From their Medium (19-2-2021):

"Delta is an on-chain options layer which utilizes a combination of liquidity standards to reduce premiums and offer competitive options prices."

• How both projects complement each other can be read here (14-2-2021).

ENCORE

• From this article (11-11-2020):

"ENCORE, a fork of CORE Vault, will be absorbed back into its “parent” coin, CORE. This is one month after ENCORE held a Liquidity Generation Event (LGE) where 10,000 ETH (around $4 million as of writing) was contributed. Participants of the ENCORE LGE have not received gains proportional to their original principal due to low trading volume for the ENCORE token. As such, the ENCORE team has decided to bring ENCORE’s liquidity into CORE’s liquidity pools, which benefit from forced arbitrage and significantly higher trading volume (and thus, higher accumulated fees)."

Governance

• From the website (4-1-2021):

"CORE is designed for great community governance. The community decides everything, from developer fees, to deciding on the fee approver contract, adding new pools, rebalancing, and even disabling pools in the CORE Transfer contract.

If the holders decide COREVault should have a YFI pool, we can set the ratio of fees it will be able to distribute, as well as when people should be able to withdraw YFI tokens from it."

As of date, there is no concrete plan for actual governance.

• From their Github (9-12-2020):

"All transfers have to be approved by the CORE Transfers smart contract, which will block all liquidity withdrawals from Uniswap. This will guarantee a stable market, giving holders and farmers skin in the game."

Emergency Shutdown

• From their blog (20-12-2020):

"The CORE Panic Button smart contract is intended to be triggered, in case of a serious emergency, such as a hack, security breach or possible malicious governance activities. Once 500 CORE are placed inside the COREPanicButton Contract, it enacts immediately to shut down the entire system. The dev team will be able to take a look at the threat and eliminate it. The community members who contributed 500 CORE to the COREPanicButton contract and stopped the malicious event from further damaging the protocol will receive a bounty reward of 10 CORE, split among its contributors. In case of a false alarm, 500 CORE inside the contract will be burned and the protocol will restart unchanged."

Who decides what a false alarm is and how 'emergencies' will be stopped is not further disclosed.

Roadmap

• Can be found [Insert link here].
• From their blog (31-10-2020):

"The next phase will focus on implementing trading strategies similar to other DeFi ecosystems.

Flash LP Loans — allowing the underlying assets to be unwrapped and loaning it out atomically in the same transaction adds value to each loan due to the fee on transfer. LP pool farmers will generate yield at absolutely no risk.

Collateralized loans — CORE Vault has access to a diversified selection of different coins which can be taken out as a loan. Due to the oracle data collected by ERC95 we can adjust risk, based on bottom prices and liquidity of other coins. This creates non exploitable collateral systems with the lowest risk for borrowers and greatly reduced up-front cost for people borrowing."

Audits

• Bug bounty program can be found here (11-11-2020). It seems people earn 'points' for reported bugs.
• Scored a 66% on DeFi Safety (3-11-2020); "An audit by The Acadia Group was completed October 8th. Cvault.Finance was released September 18th.​" And as a comment: "Strong on their contracts and audit, but testing and docs are weak.  But they have said they will improve so things will get better."

Usage

Projects that use or built on it

Delta Finance is one of the building blocks of the

Competition

• Other asset management projects like yEarn and Harvest Finance.
• From their blog (31-10-2020):

"The major difference lies in the fact that ERC95 collects data live from the blockchain and thanks to the CORE permissioned- fee, we can trust this data because it is incredibly costly to manipulate it. Our strategies will have access to more accurate data which boosts performance and accuracy. The competitive landscape heavily relies on centralized oracles or governance, creating a stop gap. All systems should be governed by code and changes to code should be governed by governance, NOT variables inside code."

Coin Distribution

• About 65% of all CORE tokens are within Uniswap contracts (4-1-2021). After these (probably) liquidity pools, the two biggest holders both hold about 4% of the supply.

Pros and Cons

Cons

• Has strong admin keys which pose a risk due to having anonymous founders.

Team, Funding, Partnerships, etc.

Team

• Full team can be found [here].
• The team is anonymous (2-2021).

Partners 

• Is a partner with Cover Protocol (20-12-2020).