Earn Interest on Crypto with the Highest APR from Covo DeFi Pools

ATLANTA, Jan. 18, 2023 /PRNewswire/ – Covo Finance is a 100% decentralized spot and perpetual exchange that enables users to trade major cryptocurrencies such as Bitcoin, Ethereum, and Chainlink tokens directly from the user's crypto wallets. COVO Finance supports low trading fees and zero price-impact trades for assets resembling the functionalities of top centralized exchanges, while perpetual futures trading is available with up to 50x leverage. With its low swap fees and zero price impact trades, COVO is among the fastest-growing spot and perpetual DEX on the Polygon network.

Covo Finance utilizes a new mechanism for its 'COVO Pool' to match all platform trades while maximizing yields to allow users to earn interest on crypto.

How Does COVO Pools Work? 

The trading on the platform is facilitated by a multi-asset pool called COVOLP. It consists of 50-55% stablecoins, 25% ETH, 20% BTC, and 5-10% other top altcoins, such as Chainlink and Uniswap. The liquidity is added when users mint COVO Liquidity Provider Tokens (COVOLP). In exchange for minting COVOLP, they earn 70% of all fees generated from trades on the Polygon blockchain. Contrary to some liquidity pools, COVOLP suffers no impermanent loss. Anyone can become a supplier of this liquidity pool and, in return, earn fees. And users who want to trade perpetual swaps or spot can do it using the assets from Pools.

To Earn Interest on Crypto, Follow these 3 Easy Steps:

• Bridge Your Crypto to Polygon Chain Using Bridges such as Multichain.
• Buy COVOLP Tokens with your preferred crypto, including BTC, USDC, etc.
• Earn 70% of all fees generated from trades without any 3rd party custodian risk.

The COVOLP token can be minted using any index asset, including BTC, ETH, USDC, etc., and burnt to redeem any index asset. Unlike the COVO token, it is automatically staked and not transferable. Moreover, the COVOLP pool is a counterparty to the traders; as COVOLP token holders provide the liquidity used for leverage trading, they profit when traders lose — and vice versa.

Apart from trading fees revenue, historically, according to statistics, day traders have lost more than they have profited, which will result in a net increase in COVOLP value. To maintain the pool's composition ratio, liquidity providers are incentivized to mint COVOLP with assets currently underweighted in the pool based on its current composition. Similarly, when redeeming COVOLP for any of the index assets, liquidity providers are rewarded for selecting to receive assets currently overweight in the pool: COVOLP is constantly being rebalanced by COVOLP minters and redeemers.