Polygon

The <a href="https://blockchainreporter.net/market/" rel="noopener noreferrer nofollow">crypto market</a> is still moving in a bullish trend despite regulators’ crackdown on the industry, projects built in the previous bearish season are now unleashing their potential and breaking new highs in the so-called ‘mini bull run.’<a href="https://covo.finance/#/" rel="noopener noreferrer nofollow">Covo finance</a>, a decentralized spot, and perpetual exchange haven’t been left behind in the ubiquitous bullish trend. Following the rapid <a href="https://blockchainreporter.net/adoption/" rel="noopener noreferrer nofollow">adoption</a> of decentralized finance (DeFi) after the <a href="https://blockchainreporter.net/the-ftx-collapse-what-no-one-is-telling-you/" rel="noopener noreferrer nofollow">collapse of FTX</a>, decentralized exchanges have been the new meta that most traders have run to.And though a decentralized exchange may not be as perfect yet as a centralized exchange given its infant stage, it is still considered the best-decentralized way to trade in <a href="https://blockchainreporter.net/defi/" rel="noopener noreferrer nofollow">DeFi</a>. Covo Finance as a decentralized exchange has gained recognition in the past months.<h2 id="header-0">Reason Behind The Rally</h2><a href="https://polygon.technology/" rel="noopener noreferrer nofollow">Polygon (MATIC)</a> increasing traction has contributed to the increasing awareness of Covo Finance which has now surged the COVO token price by 110%. Covo is one of the newly launched projects built on the Polygon network. It enables users to trade <a href="https://blockchainreporter.net/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a>, <a href="https://blockchainreporter.net/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a>, and other potential <a href="https://blockchainreporter.net/altcoins/" rel="noopener noreferrer nofollow">altcoins</a> directly from their cryptocurrency wallets.Over the past week, the COVO token has <a href="https://www.prnewswire.com/news-releases/covo-finance-token-surges-110-as-polygon-matic-gains-momentum-301750559.html" rel="noopener noreferrer nofollow">spiked nearly 120%</a> on the Uniswap exchange. Covo’s rally can be traced back to the growing popularity of the Polygon <a href="https://blockchainreporter.net/glossary/digital-asset-ecosystem/" rel="noopener noreferrer nofollow">ecosystem</a>. Since the beginning of the year, Polygon has not only seen an uptick in its native token MATIC price but also in the adoption of the network.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/9aebed0d9ece458da4a22af30ea62e5d.png" />MATIC/USDT price chart on <a href="https://www.tradingview.com/chart/HSuSIPeM/?symbol&#61;BINANCE%3AMATICUSDT" rel="noopener noreferrer nofollow">TradingView.com</a>The launch of the network’s upcoming catalyst, zkEVM which is to launch in March has attracted more users and developers to the network. zkEVM is an upgrade to the Polygon <a href="https://blockchainreporter.net/blockchain/" rel="noopener noreferrer nofollow">blockchain</a> that will enhance the speed, security, and capabilities of the network.<h2 id="header-1">Run Down On Covo Finance</h2>Aside from being a decentralized exchange, Covo offers services similar to that of Polygon <a href="https://blockchainreporter.net/glossary/staking/" rel="noopener noreferrer nofollow">staking</a>, it enables a unique reward-based system whereby COVO token stakers receive 30% of the platform’s generated protocol fees as a reward. The fees are generated in MATIC tokens and Multiplier Points and boost yield without contributing to token inflation.With an initial max supply of 210 million COVO tokens, a total of 150 million COVO tokens are paired with USDC for <a href="https://blockchainreporter.net/glossary/liquidity/" rel="noopener noreferrer nofollow">liquidity</a> on Uniswap. COVO token stakers earn escrowed COVO (esCOVO) tokens that can not only be staked for rewards but vested for a while. 60 million COVO tokens are kept for rewards vesting from escrowed COVO rewards.After 12 months of vesting, the vested tokens are converted back into COVO finance making esCOVO finance emission a pattern of locked staking that fends off inflation and people from selling their COVO assets immediately.

Covo Finance Token Records New High as Polygon (MATIC) Stays in the Spotlight

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