Introducing COMFI Token
As part of the work towards fully decentralising CompliFi, we are excited to introduce COMFI — the CompliFi governance token.
Total Supply: 10,000,000 tokens
Smart Contract: 0x752efadc0a7e05ad1bcccda22c141d01a75ef1e4
Please note! COMFI token does not guarantee or promise any rights to its holders, whether in terms of ability to influence CompliFi’s development, or to receive any financial gain from CompliFi’s activities, whether now or in the future.
This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment, or to issue or trade derivatives, and should not be used in the evaluation of the merits of making any financial or investment decision.
Target Revenue Model
CompliFi is a combination of a derivative issuance protocol and an AMM. Both of these elements have a natural way to generate revenue:
- At the issuance level, a fee can be charged on collateral deposited in order to mint derivatives. This mechanism is already implemented, but the fee is set at zero.
- At AMM level, a portion of trading fees earned by LPs can be directed to COMFI holders. This mechanism has not been implemented.
Every time a user trades USDC vs a derivative on app.compli.fi, the resulting transaction atomically combines both minting derivatives and swapping them on the AMM — both fees would be applicable.
It will likely be sufficient to rely only on the first mechanism above to generate desired levels of revenue, and this is the model that we expect to adopt at the outset. The second fee mechanism will remain an option for the future, should it be required.
Target Governance
Decentralised governance is critical to the success of every DeFi project. We are working hard on a mechanism that would be sustainable, inclusive and capable of funding the implementation of exciting new features on CompliFi for years to come. We expect to be making announcements regarding our progress in the near future.
From the operational perspective, CompliFi was designed with minimal governance in mind. Any user can, freely and without governance approval, create and issue new derivatives, as well as deploy new AMM pools to enable their trading. Going forward, we expect to only strengthen this freedom and empower users to take full advantage of CompliFi’s capabilities.
Some of the important levers that are expected to be under the control of governance:
- Control over protocol treasury
- Choice of new features to be deployed on CompliFi and providing a general strategic guidance to dev teams working on the protocol.
- Changing the level of various fees charged to protocol users
- Pausing derivative vaults and AMM pools for security reasons
At no point does CompliFi governance have access to user funds.
Current State of Implementation
As of the time of writing, COMFI has been deployed on Ethereum mainnet, but has not been connected to the protocol. As a result, COMFI does not currently allow its holders to directly participate in the governance of CompliFi, or to benefit from revenue generated by the protocol.
We see community opinion and feedback as a crucial factor in guiding CompliFi’s strategy. While the work to implement a fully decentralised governance continues, we would like to invite all our current and potential users to our discord channel at https://discord.com/invite/3j4D8mu7me — we would love to hear your thoughts and suggestions.
All of CompliFi’s fees are currently set to zero — COMFI token holders are not missing out on any protocol revenue while the distribution mechanism for it is being implemented.
COMFI distribution to CompliFi users is set to kick off very soon — announcements to come!
Important Links
If you are interested in joining the game of derivatives with no margin calls, or just want more information about CompliFi and its governance token COMFI, please visit our social media channels and documentation hubs listed below.
