Cook Finance has announced its Ethereum mainnet launch as part of its cross-chain asset management platform to democratize accessibility to decentralized finance (defi) through crypto index funds.
The Ethereum mainnet launch will turn users into asset managers who can create and issue their own crypto index funds. This will give new investors a composable platform to gain exposure to a wide array of blue chip defi tokens.
“We’re still in the early stages of defi but crypto adoption is now at an inflection point as retail investors enter the market at an unprecedented pace. We’re providing these new investors with a trustless and decentralized way to diversify their holdings,” said Adrian Peng, co-founder and CEO of Cook Finance.
This is only the beginning as Cook begins to achieve cross-chain compatibility in order to fulfill the platform’s mission of becoming a leading decentralized asset management platform.
Cooking Up Profits
Cook is managed by a decentralized community of token-holders that steer the ship of the protocol. It takes as little as one COOK to participate in the process, as COOK tokens are used to vote and propose changes to the Cook protocol. ckTokens are used to represent ownership of a specific fund built on Cook, similar to an ETF in equities markets.
Not only does COOK function as a governance token, but for more seasoned users the token can also be used for staking and liquidity mining. There are two pools where users can stake their tokens called Seville and Lisbon. At the time of writing, Seville offers 65.3% yield for a 60-day lockup while Lisbon offers a 65% on a 30-day lock up, earning passive revenue paid in COOK tokens. Users can also stake COOK-WETH LP for 411%, also paid out in COOK tokens.
Although staking and liquidity mining are potentially lucrative opportunities, the real bread and butter with Cook lies in their open source positions of index funds. Fund creators' unique creation methodology is protected while only the fund compositions are visible.
Cook offers crypto index funds prepared from rigorous market analysis and portfolio theory.
Users will have access to the latest and greatest defi markets and trading tools. Fund creators have low barriers to entry without the shackles of hefy legal fees or initiation fees.
Funds can be managed passively or actively by selecting whitelisted defi protocols through smart contracts. Fund managers pay 2% each time they claim management fees and 100% of management fees are distributed to COOK holders. Using the Cook platform enables both fund selectors and fund creators to concoct plenty of potential defi strategies.
Each fund on Cook Finance will have a diverse asset composition determined by users’ investment profiles. This will give users different flavors of funds depending on their risk tolerance and desired returns.
What's In The Oven?
Now that the platform supports Ethereum network and blue chip ERC20 tokens like AAVE, LINK, and UNI, Cook can begin integration with Binance Smart Chain (BSC) and Huobi ECO Chain (HECO). Achieving cross-chain functionality will help capture additional tokens for fund creation like CAKE, Venus and MDex.
Fund creation will enable vetted asset managers to issue their own crypto index funds when the feature goes live in Q3 2021. As more people arrive in the crypto markets to grab a piece of the pie, Cook provides a menu of funds created for even the most sophisticated palates.
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.