What is Canto? Canto is a blockchain development platform with the goal of realizing the DeFi vision. Canto will be accessible, transparent, decentralized and free to users. So what special products does Canto have? How will it work? Join the Weakhand team to find out below in this article!
If you want to understand more about Canto, you can read more articles below:
- What is Fantom (FTM)? Fantom Cryptocurrency Overview
- What is Casper (CSPR)? Casper Cryptocurrency Overview
- What is Solana (SOL)? Solana Cryptocurrency Overview
- What is Flow (FLOW)? Flow Cryptocurrency Overview
What is Canto?
Canto is a blockchain platform created to realize the DeFi vision. Canto makes it more accessible, transparent, decentralized and free. Canto uses Tendermint consensus mechanism secured by Canto validator nodes and EVM execution layer through SKD Cosmos and free public infrastructure design.
Canto’s goal is to be the best execution layer for native products. Canto does this in 3 steps:
- Step 1: Liquidity as a Free Public: Liquidity Providers will be free, Canto provides free liquidity to protocols, traders and traders.
- Step 2:
Preventing rent exploitation: Canto aims to establish a Free Public Infrastructure. Canto there is no sovereign governance tokenas well as the inability to deduct fees in the future. - Step 3: Capture minimum viable users: Canto avoids user ownership based on the interface, users will not be trading on the protocol but will trade with a 3rd party.
Mechanism of action
Canto DEX
Canto DEX is a free DEX platform for liquidity providers. To prevent profiteering, Canto’s DEX protocol is non-upgradeable, has no official interface, and runs forever without the ability to execute fees. When Canto launches, users will trade through a third platform, Slingshot, which is a DEX Aggregator.
Just like other DEXs, Canto also uses an AMM mechanism for asset pricing. AMM sources liquidity for trading pairs from liquidity pools, provided by liquidity providers. Canto supports 2 liquidity pools:
- The full liquidity pool uses the x*y = k mechanism.
- The centralized liquidity pool uses the yx^3 + xy^3 = k mechanism, to enhance liquidity for Stablecoins and stable value assets.
Canto Lending Market (CLM)
Canto Lending Marker is a Compound V2 fork. When using this product, the borrower still has to pay interest to the lender to compensate them for the risk when lending their assets. CLM will be governed by CANTO Stakers to prevent the protocol from risking bad debt.
CLM will allow the use of LP tokens from Canto’s native decentralized exchange as collateral. This collateral will be deposited into the lending market as supply but users will not be allowed to borrow LP tokens.
NOTE
NOTE is a fully collateralized stabelcoin issued by CLM, nIt can only be borrowed by users who deposit supported collateral, pegged to USDC/USDT. NOTE a token has a price around $1 through an algorithmic interest rate adjustment mechanism. NOTE highlights:
- Excessive mortgage: $NOTE is a collateral-backed ERC – 20 token that CLM supports, For every $NOTE in circulation, there is more than $1 USD worth of collateral held by CLM.
- Capital efficiency: The Canto lending marketplace achieves superior capital efficiency by allowing other participants to borrow money collateralized by the $NOTE-backed stablecoin.
Price stabilization mechanism $NOTE
- If NOTE price is less than $1: The algorithm will increase interest rates to stimulate users to buy NOTE in the secondary market and lend to Canto Lending.
- If NOTE price is over $1: The algorithm will reduce interest rates at Canto Lending, helping users borrow NOTES at Canto Lending at cheap interest rates and sell them at a higher price on the secondary market.
Bigde
Canto Bridge allows users to convert assets from Canto Network to Ethereum or Cosmos Hub and from Ethereum back to Canto.
Staking
Staking is the process of locking your $CANTO tokens into vlidator for a period of time to help secure the Canto network. In exchange for locking up your tokens, you will earn rewards in the form of additional $CANTO, as well as voting rights on governance proposals. If you decide to cancel your stake $CANTO, you will have to wait 21 days before the funds return to your wallet.
Canto Highlights
Free Public Infrastructure (FPI)
As the ecosystem has evolved, most platforms offer similar directions, launch a governance protocol token that derives its value from the ability to extract rent from future users.
Canto takes a different approach by choosing to launch these core DeFi prototypes as public utility protocols or Free Public Infrastructure (FPI).Where existing protocols serve their communities similarly to private pay-by-the-hour parking garages, Canto’s FPI plans to offer their communities in a way that closely resembles free street parking .
- For Canto’s DEX: GThe protocol cannot be upgraded and will not be managed.
- For Canto Lending Market: VGovernance is controlled by Canto investors.
- For $NOTE: DThanks to the account token, the interest charged to stabilize its price will be contributed to the financing of public goods.
Development Roadmap
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Core Team
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Investor
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Tokenomics
Canto token overview
- Token Name: Token Canto
- Ticker: CANTO
- Contract: 0x826551890dc65655a0aceca109ab11abdbd7a07b
- Blockchain: Canto Network
- Total supply: 1,000,000,000
Token Allocation
- Initial contributors: 13%
- Settlers of Canto: 2%
- Long-term liquidity mining: 45%
- Medium-term liquidity mining: 35%
- Future public goods grants: 5%
Token Release
- For Long-term liquidity mining group: Will be distributed over the next 5 – 10 years.
- For Medium-term liquidity mining: Will be allocated in the coming months and years.
Token Use Case
Canto tokens are currently used for the following purposes:
- Used as a means of paying transaction fees at Canto Network.
- Network administration.
- Use rewards for future activities in the Network.
Exchanges
Currently CANTO tokens are being traded on the following exchanges: MEXC, CantoDEX, BTCEX, Gate.io, ..
Project Information Channel
- Website: https://canto.io/
- Twitter: https://twitter.com/cantopublic
- Discord:
Summary
Above is the information about the Canto Network project that the Weakhand team learned. The Canto project is different from other projects on the market Free Public Infrastructure (FPI), a project that in the past also had a boom in the price of the CANTO token. However, the project does not have a clear development roadmap, dev team information is not available, and currently the token allocation does not include the team’s part, easily leading to the team abandoning the project. The project is still developing and we need to monitor more.