Cook Finance is a transparent and flexible DeFi Index platform. This two sided platform is suited to a diverse range of users to make it easy to select from a menu of indexes across multiple chains. At the same time on the other side of the platform, index creators can utilize tools to create virtually any imaginable strategy and easily offer it up to the Cook community.
Cook — Tokenomics 2.0An OverviewIn any ecosystem a delicate balance is essential for healthy functioning. For the COOK token ecosystem, that means creating new ways to enable COOK tokens to provide additional utility and in turn demand within the overall ecosystem. On the supply side, this means potentially executing new community proposed programs that will take a portion of the fees generated on the platform and set them aside for burning. This will in turn reduce the supply of the COOK tokens over time. As new community DAO proposals that specifically address tokenomics supply and demand are enacted, they will have the ability to foster a growing and healthy ecosystem that will improve the Cook platform.
Areas of Improvement on the Demand SideCook Utility — The Cook platform provides a wide array of ways to integrate and make COOK tokens a key part of driving the functionality of the platform. Specifically around participation in the DAO, index exclusivity, buying Cook NFTs and even being used for payments in online platforms such as ecommerce.
DAO — The Cook DAO was created to give the community a platform to become deeply involved in every aspect of the development of the Cook platform. To make suggestions, changes and to vote on these updates, COOK tokens will be required to participate in all aspects of the proposal creation stages and for voting on proposals. Currently, COOK tokens holders can propose to create new indexes. Later on, the intention is to add more functionality such as treasury management to the DAO so that COOK tokens will have even more governance power.
Index Exclusivity — As new indexes are launched in the future, some of the most popular indexes have the potential, if proposed and approved through the DAO, to be limited to users who have a minimum amount of staked COOK tokens or hold special COOK NFTs.
NFTs — As NFTs become more popular and a bigger part of the crypto world, they will be integrated into programs that increase community engagement. Cook recently launched a campaign where users were rewarded for participation in the Cook governance process. In the future, more NFT related campaigns will be launched and future COOK NFTs will potentially have even more utilities, such as early access to test new platform features. In order to get these future NFTs, community members will need to use COOK tokens to get them.
Good and Services Redemptions — Using utility tokens to exchange them for goods and services is a growing area and there are new partnerships with crypto payment platforms in development that will enable COOK holders to actually use the tokens to exchange for goods and services within the Cook ecosystem.
Areas of Improvement on the Supply SideBurning Fees — As the Cook platform scales up, there will be significant growth in fees. While the majority of these fees will be directly funneled back to the community, a portion of the collected fees will be set aside to exchange for burning COOK tokens.
Transaction Fees— A portion of the fees paid to issue/redeem or transact indexes on the Cook platform will be used to exchange for and burn COOK tokens. Another portion of the fees will be distributed among the COOK token stakers as rewards. As more and more indexes are introduced on the platform, the amount of COOK burned and given out as rewards will increase proportionately.
Liquidity Mining Fees — For indexes with additional yields such as yield farming assets, a percentage of the yield rewards will be used to exchange for and burn COOK tokens. Also some percentages of the yield rewards will be distributed among COOK token stakers.
Other Fees — As marketing programs are created such as lottery games and NFTs, a portion of the fees that are collected will be used to exchange for and burn COOK tokens. Another portion of the fees will be distributed among the COOK token stakers.
Staking Pools — When the Cook community proposes and votes through new liquidity mining and staking pools, these incentives will serve to drive up the participation level from the community. While it would be great to set extremely high APYs with no lockup periods to attract a large amount of capital, this will have the negative effect of dramatically increasing circulating supply. In this ecosystem though, it’s important to reach a balance between the APYs, reward vesting periods, lockup periods and new pool launch frequency that will create the feedback loops that improve the health of the COOK ecosystem over the long term.
APYs — High APYs rewards will attract takers, however excessively high APYs also increases the COOK supply. Instituting a gradual decay in higher APY pools creates a healthier ecosystem. This will help reach sustainable TVLs which are important for a vibrant ecosystem.
Vesting Periods — A sudden release of a large amount of tokens might cause a supply shock. Therefore, token rewards with reasonable vesting periods will be implemented to ensure COOK token utility is not affected negatively.
Lockup Periods — Long term alignment is important to ensure that COOK token holders provide liquidity over time. Therefore lockup periods for staking will be regularly presented to the community for reviews and implemented to ensure a sustainable liquidity supply that will increase the utility of the COOK token.
Frequency — While liquidity mining and staking pools are very popular, oversupply of tokens may dilute the overall utility of them. Therefore, when new liquidity mining and staking pools are proposed and voted through on new L1 protocols or when there are major upgrades to the platform, these programs will be reviewed by the community. By closely engaging with the community, liquidity mining and staking programs will serve to improve the overall health of the ecosystem.
As these areas of improvements on both the demand and supply side are considered by the community, it is the intention that when implemented, the overall ecosystem will improve. In the long term it is in the best interests of all those involved with Cook to see a well balanced and growing ecosystem. With the Cook DAO there will be numerous opportunities for the community to create even better proposals that have the potential to improve Cook tokenomics such as those shared here and to create even more use cases for the COOK token.
The Cook 2022 RoadmapAs we look forward to 2022, the Cook team spent considerable time thinking strategically about the key milestones that we want to achieve this year, how these milestones will play into our long term vision and how Cook will tap into the tremendous opportunities provided within the rapidly evolving DeFi industry.
With the world of DeFi changing at breakneck speed, we strategically set these six milestones to focus on areas that we see rapid growth potential. These areas are ripe with opportunities for Cook to create new solutions that are greatly in need by users from both sides of the Cook platform.
At Cook our vision is to create a platform that will provide incredible value by making the world of DeFi Index selection and management easier than ever. The key milestones that we have set out to achieve this vision are outlined below to give a preview of what’s to come in 2022. Now as we continue to progress through this roadmap by adding new features and making new improvements, we couldn’t be more excited about the future of the Cook platform.
The Roadmap for 2022Q1: UI/UX — No Wallet Required to use Cook
Q1: Indexes — New Yield and Lending Indexes - done
Q1: Chains — Launch on Top Chains - done
Q2: Program — Index Creator Program Launch - done
Q3: Platform — A Cook Pro Version for Institutions
Q4: Launch — DAO Treasury Management
DeFi is growing rapidly and we predict that one key segment of the market that will enter the crypto world this year will be the early mass market. While people in this segment may be familiar with the large CEXes such as Coinbase and Gemini, there’s a good chance they don’t have a Web 3.0 wallet yet. To make it easier for them to get into DeFi Indexes directly, we plan to build a feature that will enable anyone to get a DeFi Index through just an email address as the account login for the Cook platform.
Q1: Indexes — New Yield and Lending Indexes
As we build out the Cook platform we couldn’t be more thrilled to have our community come up with new ideas for indexes. Already we have some exciting ideas percolating up from the community. By discussing and exploring these new ideas, we want to harness the power of the community to come up with even more indexes. So as we look into the future, we’ll be launching programs to get the community involved in generating index ideas to launch on the Cook platform.
Q1: Chains — Launch on Top Chains
Continuing on our mission to bring the Cook platform to as many people as possible, we are planning to launch Cook on top of additional popular chains starting with the Binance Smart Chain. This will enable wider access of the Cook platform and enable the introduction of new indexes comprised of projects that are native to specific chains. The team expects these launches will accelerate the growth of users and TVL by tapping into new opportunities from rapidly growing top Layer 1 chains.
Q2: Program — Index Creator Program Launch
After accomplishing the first major milestone of opening up the platform to enable users to select from a menu of indexes, we will now open the other side to Index Creators. A significant amount of planning and thought is going into building out this major component as we want to provide the same simple user experience, that is currently had on the index selection side, also to the creator side. Additionally, scalability is one of Cook’s key value propositions and this program will open up valuable partnerships and trade routing opportunities across the crypto ecosystem and TradFi participants alike. This new component will be supported by Cook’s smart-contract based infrastructure and user-friendly interface to make it super easy to create a brand new index.
Q3: Platform — A Cook Pro Version for Institutions
As we continue to see a growing migration of traditional institutional participation in the crypto ecosystem to DeFi, the team is working to launch a “Cook Pro” version targeting institutional participants. In the proposed setup, intermediaries (e.g. crypto custodians, OTC) will play the role of whitelisters, whose responsibilities include: onboarding and conducting compliance reviews of their whitelisted wallet addresses to meet AML/CFT regulatory requirements. By creating a permissioned layer, institutions previously held back by uncertainties surrounding compliance/KYC will now be able to utilize some of our most advanced DeFi Index functionalities available on Cook such as “Issue Index from Single Token” and “Redeem Index to its components”. We believe the strong institutional demand for permissioned DeFi and index-linked return profiles will be two of the major factors that drive demand for Cook Pro.
Q4: Launch — DAO Treasury Management
With extensive growth in DAOs predicted in 2022, we will be building out features on the Cook platform that will make it incredibly simple for DAOs to diversify their respective treasuries through Cook Index offerings. By doing this DAOs will be able to better manage volatilities in their treasuries and match their cash expense outlays. Additionally, DAO treasuries seeking yield will have the opportunity to participate in yield bearing indexes on Cook to enhance their portfolio return while minimizing risk. Our Cook Treasury Management Suite will also feature administrative processes, controls and day-to-day risk management tools.
Cook Financee website:
https://cook.finance/Cook app:
https://app.cook.finance/Cook Governance:
https://gov.cook.finance/Twitter:
https://twitter.com/cook_financeTelegram:
https://t.me/cook_englishYouTube tutorials:
https://www.youtube.com/c/cookfinanceCMC:
https://coinmarketcap.com/nl/currencies/cook-protocol/Medium:
https://cookfinance.medium.com/
sources:
https://cookfinance.medium.com/the-cook-2022-roadmap-457a3d0fe349https://cookfinance.medium.com/cook-tokenomics-2-0-944827645580
