Can the EGG Token Democratize Defi To A Mainstream Adoption?

January 11, 2020 | AtoZ Markets –  There are very few crypto concepts that are as potent as decentralized finance at the moment. This financial order possesses unique monetary dynamics that let participants distribute value and money seamlessly and fairly. More importantly, it provides trustless mechanisms that eliminate manipulations often attributed to traditional financial infrastructures. However, as with every innovation, some areas can be improved upon, especially if mainstream adoption is the ultimate goal.

One of such impediments that need a quick and viable fix are issues relating to accessibility. In the current state, only a handful of investors have uninhibited access to DeFi protocols and money markets. It is common knowledge that the complexities of this financial order restrict the benefits of decentralized fintech to technical-savvy individuals who have the wit and tools to navigate the mazy DeFi landscape.

For instance, the outcome of past Initial DEX Offerings (IDO) has raised concerns over the fairness of DeFi enabled token distribution mechanisms. Technical traders usually have an added advantage over the inexperienced ones because they can run scripts or bots to amass newly released tokens and sell them instantly at a higher price. This is just one of the ways inexperienced DeFi participants are at the receiving end of an unforgiving and open financial terrain.

In response to this challenge, a wide range of solutions has begun to develop infrastructures that will democratize the DeFi market and reinforce fairness in all of the processes involved. While this may seem a tad difficult at first, the progress recorded in this regard is indicative of the strong possibility of mainstream adoption of DeFi in the not-too-distant future. One of the platforms contributing to this narrative is Cocoricos, a DeFi-powered suite of services designed to normalize decentralized finance by exposing it to a broader audience. Here, I will explore this project and its token and determine whether its offering is potent enough to spur mainstream adoption.

Cocoricos Looks To Propel DeFi Adoption

According to its whitepaper, Cocoricos “is a suite of decentralized finance (DeFi) products focused on creating a simple way to generate rewards on various assets via best-in-class liquidity pools, proof of stake (PoS) and Airdrops.” In other words, it has developed an all-in-one DeFi interface that lets users navigate the DeFi landscape effortlessly. Participants only need to choose from the list of pools or yield-generating services supported on the platform and integrate with them directly to enjoy the DeFi largesse. Once fully operational, users can partake in liquidity mining, airdrops, staking, and trading of tokenized real-world assets.

Without any doubt, the plethora of opportunities available on Cocoricos is enough to drive traffic. However, the team is leaving nothing to chance. And so, it has introduced a native protocol that ensures that the processes involved are as seamless as possible. Coined the EGG protocol, the infrastructure establishes the decentralized front on which the whole Cocoricos ecosystem thrives. The design encapsulates a systemic redistribution of governance and value to the end-users.

Interestingly, it also facilitates on-chain transactions and executions that evade existing cumbersome and expensive requirements of the increasingly saturated DeFi ecosystem. In light of this, users do not have to undertake a complex flow of exchanges and swaps to engage in staking or liquidity mining. All a user needs to do is purchase the platform’s native token, EGG, to generate unrestricted access to a wide array of yield boosting pools.

For instance, a Bitcoin holder wishing to stake SNX would have to go through the process below to earn yields:

For example a Bitcoin holder wishing to stake SNX must go through the following flow to generate yields:

BTC ⇢ ETH (fees) ⇢ SNX ⇢ Stake on Synthetix ⇢ SNX staked

Cocoricos allows this flow:

BTC ⇢ EGG ⇢ SNX staked

In addition to this exciting approach to yield farming, the platform also incentives active engagement by issuing EGG tokens to users that utilize its protocol to mine liquidity, receive airdrops, and stake coins. Note that the EGG token is also the anchor of the decentralized governance of the protocol.  Hence, Cocoricos has not only created a yield-boosting outfit but has also deciphered means of incentivizing active participation in the running of the platform and its liquidity pools.

Having explored the details of Cocoricos’ offerings, it is clear that it has the workings of an ingenious approach to user experience and accessibility. If it plays its cards right, the projects and the EGG token stands a chance of championing the mainstream appeal of DeFi. It is worth noting that there is an ongoing EGG Presale that will last until the 15th of January, 2021, when it will become available on Uniswap. 

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