Delta Financial & coreDEX FAQ

The team at over at CORE Vault recently announced a new project they’re creating called Delta Financial which launches in just over 7 days from now as of this post. This news has caused quite a stir in the CORE community and raised many questions and elicited much concern/FUD.

The purpose for this post is to better understand how Delta Financial will affect existing CORE LPs and CORE token hodlers.

The first project being created by Delta Financial is a new decentralized exchange called coreDEX which promises to solve a critical and longstanding challenge faced by other DEXs: “Without a guarantee of liquidity, markets suffer from sudden loss of liquidity, and highly increased risk due to the volatility introduced with highly variable liquidity.”

You can read more about coreDEX here:

And here:

And here:

https://twitter.com/0xRevert/status/1359384805335584769

The following FAQ is unofficial and consists of information I collected and compiled by wading through the messages shared within the CORE Official Telegram group (https://t.me/COREVault). None of it should be taken as truth or not. Take what you read as you will and make your own decision as to whether Delta Financial and coreDEX will be good or bad for CORE investors.

FAQ & Miscellaneous Messages

  1. How are CORE LP holders at the center of this though? This seems like a separate project essentially.
    — — —
    CORE token holders are fully integrated in Delta’s options layer. Parts of the profits generated from Vault strategies, Options, Open Vested Liquidity and future features will be distributed to the CORE ecosystem and used to auto market buy the CORE token. It’s pretty deeply intertwined with CORE reward mechanism for LP holders and CORE token holders, but it’ll probably be more clear as we release the rest of the posts this week
    — — —
    There are two sections to core dex — CoreDex Core and CoreDex Delta will address the lack of options and futures in the market and will solve Impermanent Loss. The Delta tokens are part of this ecosystem.
  2. Is it basically a new project?
    — — —
    It’s not. It’s part of the ecosystem of core delta which handles futures option — this creates volume for core because it market buys core which raises apy for core lp hodlers.
  3. I just don’t get the new token… it will suck in all the capital that pours in from new interest, rather than going to CORE investors.
    — — —
    Core only has 9–10k tokens, it needs a new token to handle the futures and options part of the core delta platform aka liquidity.
  4. If rLP holders get paid yield in core token, this means lots of market buys for core token, driving price up, and also lots of sells, paying fees to core LPs? Aka guaranteed volume for Core LP providers. And this will be just one of the many features providing volume to the Core LP holders.
    — — —
    CoreDEX will run on a new liquidity provider token. Liquidity providers from CoreVault will be able to signal migration to the new coreLP token.
    — — —
    Delta increases vault/protocol churn. This increases staked LP rewards while increasing demand for CORE tokens. The result is an increasing price of CORE, and increased profits for LP liquidity providers.
  5. Liquidity Generation Events from CORE have distributed LP tokens which represented the underlying assets. The limited staking window distributes rLP tokens which have a rebasing liquidity mechanism. Its very different from LP tokens because rLP are limited and its minting prices are influenced by the rebase.
    — — —
    People need to understand that core lp hodlers and token hodlers will benefit from the core dex delta platform as it will add massive volume in terms of market buying core, this will raise apy and price of core token through options and futures trading/calls
  6. Delta has a unique system of producing liquidity. It will launch by using the Limited Staking Window mechanism.
    — — —
    Once Delta launches, CORE and CORE LP will be able to profit from the new mechanisms introduced by Delta.
    — — —
    CORE LP holders are literally getting an upgrade by being able to receive yield produced by all the new systems that come with Delta.
    — — —
    The CORE token will also receive a lot more utility because of Delta’s existence.
    — — —
    Most importantly Delta is not competing with CORE. They are both working towards creating coreDEX.
    — — —
    There is no swap happening during Delta LSW. For Core LP tokens.
  7. Besides the effect of forced market buys, how does this project add, rather than remove, value from the core token and all its derivatives?
    — — —
    Well, i mean, it doesn’t duplicate anything that core was already doing, so, it probably can’t remove any value.
    — — —
    Think of it as an upgrade to the CORE token and LPs. Through the Migration contract you will be able to participate in early fee sharing of the coreDEX alpha & beta. coreDEX Delta is the first part of the coreDEX infrastructure which will be released.
    — — —
    In addition to the market buying core which is an obvious benefit you can stake your core/lp for fee sharing, also “The next article will take a closer look at the unique vesting mechanism of the Delta token. We will illustrate the power of Open Vested Liquidity and explain in detail how the rest of the ecosystem benefits from this.”
    — — —
    They said the fees generated would go back into market buying core — do you realize how much that will increase the apy for lp holders?
  8. I don’t understand why there will be a new LP and Delta token.
    — — —
    Core liquidity is locked. To achieve the dex design we wanted, we need liquidity that is locked. Great.
    — — —
    We also would like to expand the size of the liquidity by offering only partially locked liquidity. You could do that with a bunch of smart contracts that tie up ETH or other collateral and keep track, and if you did you might make it easy to keep track, and trade by tokenizing it. So we did. That’s DELTA.
  9. I’d the delta token is launched and pulls straight to $50k due to the hype and Core is still chilling at $6k people are gonna be rightly asking questions over how it was handled.
  10. Is there a reason that the ‘reserve’ currency of DELTA isn’t CORE? Given that core has the backing of ETH,WBTC,DAI reserves plus the natural growth of the platform … i would have though that DELTA (the core DEVs) should love to have that as the reserve currency, instead of ETH. Is there something in core’s mechanics that doesn’t allow it to be Delta’s reserve currency or make it appropriate base (fot?) or raising funds instead of ETH?

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