What is Circuits Of Value?
Circuits of Value (COVAL) is an interesting lower marketcap (Currently around $44m) coin that I stumbled upon recently. It touts itself as blockchain’s first ‘composite’ token. It achieves this by providing a way to trade tokens on any blockchain on any EVM based blockchain and an ability to trade multiple tokens at the same time as a single token.
Before we really dive into what that means, we should take a look at the ecosystem’s tokenomics. The ecosystem currently runs off two tokens, COVAL and FUEL. FUEL is the transaction token used within the Emblem platform, while COVAL is the utility token used both within and outside the platform.
When COVAL is used to purchase FUEL, you get FUEL at a discounted price. When COVAL is used as payment, some of it is rewarded back to liquidity providers. When FUEL is purchased using ETH, it routes through the COVAL pool and any ETH earnings trigger a market buy of COVAL that is half burnt and half distributed back as rewards. There’s more information on the tokenomics found here.
Currently on the platform, users can create vaults that hold any combination of BTC, ETH, and any ERC20 token. This vault will hold those tokens and can be transacted as one unit. This means the system could hypothetically create easily transferable liquidity pools or trading portfolios without the need to individually send the coins or tokens themselves. This could also be used for any number of NFTs held in the vault.
So there are a few ways you can purchase a vault: ETH purchases route through Uniswap to market buy COVAL to create the vault. Purchases made with COVAL cause the amount paid to be burnt and redistributed as rewards. Purchasing with FUEL gives access to the vault at a discounted price.
The roadmap provides some insight into what is currently in the works. Spring has support for the Binance Smartchain and vault staking to look forward to. Fall, on the other hand, has secret contract finalization in the works.
As it stands, I think the premise behind the project is very interesting and if it works out there could be some major waves made in the blockchain ecosystem. But having said that, I’m put off by a real lack of a whitepaper that I could find, or even a detailed roadmap. There is definitely some recent interest in the project, as I’ve seen talks of it around a few corners of Reddit but beyond that I’m unable to find much beyond their Twitter account and a recent AMA (Which does contain some interesting information). This doesn’t necessarily mean the project won’t achieve what it's looking to do, but it does make me hesitant to really buy into it right now, but I do find it to be a project to keep an eye on.
Due to the lack of information I could really find, this was a very brief overview of what can be found in slightly more detail on their website and a few other spaces. If anyone else has more information on the project, I would love to hear about it! So while I’m hesitant to put support into it right now, some of the things they are working on are huge in terms of convenience and privacy in particular. I will definitely be keeping an eye on the project in the future.
