The introduction of EGG can make it a lot easier for everyone to explore different DeFi yield farming options, staking, and so forth.
Gaining a foothold in the DeFi industry can often be challenging for novice users. It requires particular assets to maximize one’s profit potential. Cocoricos, combined with its native EGG token, attempts to change the game in multiple different ways.EGG Makes DeFi Yield Farming EasierThere are many different hoops to jump through without access to the correct specific token required for a particular DeFi platform. This is especially true for bitcoin users, as they need to obtain ERC-20 tokens from an exchange. In many cases, those tokens can only be traded against Ethereum, requiring at least two intermediary steps.Bitcoin -> Trade BTC/ETH -> Trade ETH/TokenWith the EGG token, users can cut these in-between steps from the equation. A bitcoin user can obtain the EGG token and explore a growing collection of DeFi options through this asset. Making accessibility easier for novice and advanced users alike can improve overall DeFi liquidity. More importantly, it removes the need to rely on centralized exchanges such as Binance to provide access to new yield farming options.Achieving a Higher DeFi APYWhat makes the Cocoricos platform intriguing is how it will provide a better APY for DeFi yield farmers. Any of the platform’s options will generate EGG tokens for its users. This means it is possible to combine multiple revenue streams in one sweep.For example, a user can provide Uniswap liquidity for the different pools and earn EGG simultaneously. Doing so provides the user with a share of the 0.3% trading fee by Uniswap, plus extra income from the EGG they receive. There is also an EGG-ETH liquidity pool expected to offer an APY of over 1,000%.It is crucial to note that staking EGG will offer a very different yield curve. The team wants to reward users who hold their tokens for more extended periods by introducing higher rewards.Contracts for all of these aspects can be found on GitHub for public review.Culling Wheat from ChaffThere are dozens, if not hundreds, of projects active in the DeFi world. Rather than burdening users with researching the most profitable ones and comparing rates, EGG holders will always receive access to the most profitable DeFi projects on the market. A big step forward, from a convenience point of view.More importantly, the EGG token provides access to exclusive DeFi assets. Options include opportunities for staking, liquidity mining, and airdrops taking place in the future. Combined with the ease-of-access at which users will enter projects, there is a certain appeal to the EGG token in that aspect.Regular Token BurnsThe EGG token supply will be limited to 60 million EGG. As the token will go live on Uniswap come January 15th, users will be able to purchase the asset at 0.1 DAI per EGG. How long this price will remain in place is difficult to determine. Existing EGG holders will be able to swap to the v2 token at a 1:1 ratio.However, what is a known factor is how a total of 10 million EGG will be burned. More specifically, 100,000 EGG is burned every three months. Doing so will help gradually decrease the overall supply.Other Use Cases for EGGEven though most people will see EGG as a facilitator for DeFi access, the token goes beyond that. It is a governance token first and foremost. Community members can help shape the future of the protocol and provide guidance for critical features of the ecosystem.Secondly, the EGG token will serve as a solution to pay for fees within the Cocoricos ecosystem. Options include coin minting, disaggregation fees, rewards payments, and so forth.Third, the EGG token is also a “safeguarding solution” of sorts. If the protocols experience unforeseen events, EGG can be issued or auctioned to cover any financial discrepancies. Even if an asset’s liquidity becomes a liability, EGG will provide recourse to offset any mishaps.ConclusionThe introduction of EGG can make it a lot easier for everyone to explore different DeFi yield farming options, staking, and so forth. Although there is over $17 billion of value locked in Ethereum’s DeFi alone, tapping into liquidity from other blockchains and cryptocurrency assets is pertinent.Considering how the Cocoricos team works together with Maker, Chainlink, Uniswap, and Request to introduce a more accessible DeFi ecosystem, this venture may prove worthwhile. It is a good idea on paper as it removes a few annoying hurdles to adoption from the equation altogether.