Research Summary
The report provides an update on Canto’s Neofinance ecosystem, focusing on the role of the Neofinance Coordinator and the launch of Vivacity Finance, the first whitelisted third-party lending market. It also discusses the potential impact of these developments on Canto’s future.
Key Takeaways
Neofinance Coordinator Role
- Introduction of Neofinance Coordinator: Canto has introduced a new protocol, the Neofinance Coordinator, responsible for incentivizing the supply of cNOTE to whitelisted third-party lending markets. The Coordinator is incentivized with 1.09 CANTO per block.
- Role of veCANTO: Users can lock CANTO for a fixed 5-year period to receive veCANTO, which provides gauge voting rights. These rights allow users to influence the distribution of CANTO for incentivization purposes.
Vivacity Finance Launch
- Launch of Vivacity Finance: Vivacity Finance, the first whitelisted third-party lending market, has been launched. It allows whitelisted buyers to supply hyVWEAX as collateral and borrow NOTE against it at a 4.83% rate.
- cNOTE Depositors’ Incentives: cNOTE depositors are being paid almost 47% + Viva Points to supply cNOTE to the market. Currently, there is around $1m of hyVWEAX deposited as collateral and $4m of NOTE supplied to the market.
Future of Canto
- Speculation and Front Running: Much of the CANTO price action leading to this point has been speculation and front running surrounding the launch of various Neofinance pieces.
- Monitoring TVL Growth and Canto Inflows: Monitoring the growth of Total Value Locked (TVL) and Canto inflows will be essential to determine what the future might hold for Canto.
Actionable Insights
- Understanding the Role of Neofinance Coordinator: Stakeholders should familiarize themselves with the role and responsibilities of the Neofinance Coordinator, as it plays a crucial role in incentivizing the supply of cNOTE to whitelisted third-party lending markets.
- Monitoring the Performance of Vivacity Finance: As the first whitelisted third-party lending market, the performance of Vivacity Finance could provide insights into the potential success of future similar initiatives.
- Tracking CANTO Price Action: Stakeholders should closely monitor CANTO price action, as it could provide valuable insights into market sentiment and potential future trends.
