COS and xCOS

COS Overview

COS is the native token of CosmosDAO, a decentralized finance (DeFi) protocol, and is fully backed by the protocol's treasury. Unlike traditional stablecoins pegged to fiat currencies like the dollar or won, COS is designed as a free-floating flatcoin that maintains a transparently defined price range using the Range Bound Stability (RBS) system. COS bridges the gap between fiat-backed stablecoins and highly volatile cryptocurrency assets, offering relative price stability and scalability.

Key Features of COS

• Non-Pegged Design: COS is not pegged to fiat currencies like the dollar or won. Instead, it maintains a flexible price range that dynamically adjusts to market conditions through the RBS system. The minimum price is guaranteed by assets held in the treasury (e.g., 1 DAI or equivalent stable assets).

• Treasury-Based Stability: COS is fully supported by the CosmosDAO treasury, which consists of stable assets such as DAI, FRAX, ETH, and liquidity pool (LP) tokens.

• Dynamic Supply Adjustment: The supply of COS is algorithmically adjusted based on market demand and supply:

  • Price increase: Additional COS tokens are minted to expand supply.

  • Price decrease: Tokens are burned or removed from circulation to stabilize the price.

• Decentralized Governance: CosmosDAO is operated through a fully decentralized, community-driven governance model. COS holders can participate in protocol upgrades and policy decisions, ensuring transparent and inclusive decision-making.

xCOS: Integrated Token System

CosmosDAO introduces xCOS as a single token to enhance accessibility and functionality. xCOS integrates staking rewards and governance features, supporting staking, governance, and Hybrid Defi platform activities.

xCOS Functions

• Staking Rewards: Users can stake COS at a 1:1 ratio to receive xCOS. xCOS undergoes periodic rebase adjustments based on revenue generated from treasury assets, increasing holdings and reflecting staking rewards.

• Governance Participation: xCOS holders can participate in CosmosDAO's decentralized governance, voting on protocol upgrades, policy proposals, and treasury portfolio management. This enables the community to shape the platform's direction and explore additional revenue opportunities.

• Hybrid Defi Platform Utility: xCOS plays a central role in CosmosDAO's Hybrid Defi platform:

  • Participation in liquidity pools or DeFi functionalities.

  • Management and utilization of assets within the treasury. xCOS provides access to a diversified treasury portfolio, supporting long-term value creation.

• Enhanced Accessibility: xCOS consolidates all functions into a single token, reducing complexity and enabling users with limited technical knowledge to easily participate in staking, governance, and Hybrid Defi activities. A user-friendly interface ensures accessibility for both beginners and experienced users.