Polygon’s zkEVM Ignites DeFi Boom, Covo Finance Hits $50M Leverage Trading

Apr. 30, 2023
Polygon’s zkEVM Ignites DeFi Boom, Covo Finance Hits $50M Leverage Trading

Ethereum scaling platform, Polygon, made waves in the decentralized finance (DeFi) sector by launching its zero-knowledge Ethereum Virtual Machine (zkEVM) mainnet. This move has ignited explosive growth in the market, attracting traders’ attention to Ethereum and Polygon (MATIC).

One notable platform experiencing this surge is Covo Finance, a popular crypto derivatives exchange. Covo Finance recently revealed that it achieved an impressive milestone, surpassing $50 million in trading volume for both Ethereum and Polygon (MATIC).

The DeFi market on them has flourished, driven by the increasing demand for scalable and efficient blockchain solutions. Consequently, Covo Finance, a fully decentralized perpetual exchange built on the Polygon network, has seen rapid adoption.

The platform allows users to trade major cryptocurrencies, Forex, and Metals with leverage of up to 100x directly from their web3 wallets. The advantage is that they can avoid the risks associated with third-party custody on centralized exchanges (CEXs).

Covo Finance offers traders an intuitive and robust interface, advanced order types, superior order execution, adjustable leverage, and USDC collateral. Additionally, the platform provides dynamic funding, pooling, and staking, all at low trading fees. These features have propelled Covo Finance to become one of the fastest-growing spot and perpetual DEXs) on the Polygon network.

The platform utilizes the Pyth Network and Chainlink oracles to settle orders on Covo Finance. Beyond trading, Covo Finance enables users to pool funds and generate real yield. By providing liquidity in the form of USDC or MATIC, pool participants receive a share of trader profits, losses, and up to 40% of fees, which are distributed directly in USDC and MATIC.

Covo Finance: A Powerful Decentralized Perpetual Exchange on Polygon

Furthermore, users can stake COVO, the native token of the Covo Finance protocol. By staking COVO, investors can earn up to 30% of fees in USDC and MATIC and staking rewards in COVO with a fixed APY of 7-9%. Covo Finance ensures transparent value distribution among participants, allowing them to tailor their level of risk tolerance.

Ethereum has experienced a significant price surge, breaching the $2,000 mark after the recent Shanghai update. Currently trading around the $1950 support level, Ethereum’s transition to a deflationary model has captured the interest of both retail and large-scale investors.

Ethereum remains a top holding for retail investors. The total value locked in DeFi on Ethereum and Polygon networks has increased by over 10% in the past month.

The positive impact of the Shanghai update and the deflationary model has bolstered investor confidence in Ethereum and Polygon (MATIC). Platforms like Covo Finance are expected to gain traction as the market sentiment remains positive.

However, Covo Finance introduces a fully decentralized perpetual exchange on the Polygon network. Users can now take long or short positions on Ethereum and Polygon (MATIC) with leverage up to 100x. The new system eliminates the risks of centralized exchanges.

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Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.