What is Cook Protocol?
Cook Protocol is a fully decentralized Ethereum-based wealth management framework designed for investors and experienced asset managers to access a whole new world of DeFi technologies.
While DeFi seems rather exciting, it is a challenge for average investors to participate. The Cook Protocol Team has set out to revolutionize DeFi with a vision to introduce finance to the public.
More about the Cook Protocol
The Cook Protocol is a network based on the Ethereum blockchain that links institutional investors to experienced investment managers. The Cook Protocol provides institutional investors with a broad range of wealth management solutions provided by a wide range of experienced asset managers, such that investors may not need to grasp the intricate principles behind the DeFi train.
What they need to do is pick their favorite tactics. Risk-averse shareholders can prefer more efficient index-based investing, whereas high-return investors can opt for more actively controlled investments.
Cook Protocol would expand into the crypto investment management segment, which is already estimated at hundreds of billion USD and is rising rapidly. Cook Protocol enables clients to choose the best investment options created by portfolio managers. They have a sleek and easy-to-use gui for investors and fund managers with powerful economic resources.
The uses of the Cook Token
COOK tokens are governance tokens that can execute several protocol modifications, including:
1) Modify Governance Model: If the holders of tokens are unhappy with the current governance model, they can suggest changes to better advance their interests.
2) Adjust Platform Fee: Cook token owners can consider increasing or reducing the fees paid on the Cook Protocol framework.
3) Change Pricing Oracle: Cook Protocol uses a value oracle to measure the worth of the investment portfolio. Token holders could vote to update the price oracle.
4) Update DeFi Whitelist: The whole Cook token group will determine whether to introduce or delete a new DeFi protocol to the protocol-level whitelist.
5) Add New Features: Cook tokens may also be used to decide on the addition of protocol-level functionality.
The uniqueness of the Cook Protocol
In comparison to conventional asset management systems, Cook Investment Funds are all focused on blockchain. The threat index and benefit details correlated with individual investment funds are thus entirely open and accurate. Investors may monitor the data on the blockchain.
Also, each investment still has access control such that the fund manager can assign locked-in assets but cannot remove funds. Investor money is also completely safe under the Cook Protocol.
Each fund is designed as a consensus mechanism implementing the ERC-20 token standard. The balance of the customer is described as a sum of fund LP tokens or ckTokens. Users will mint ckTokens by contributing funds to the fund and exchange ckTokens for the underlying assets.
The price or the exchange rate of the ckToken differs over time with each underlying commodity. At the time, the conversion rate can be determined as the overall value of the fund separated by the total ckTokens in liquidity.
Proper rights are delegated to fund managers to guarantee the stability of assets in smart contracts. As a consequence, the investors of ckToken control the underlying assets of the respective portfolio, while the fund managers will only distribute funds to the whitelisted DeFi markets. Any fund manager only has recourse to investing on smart contracts and doesn’t have any withdrawal permits.
Summary: Overall, the Cook Protocol is a state-of-the-art blockchain initiative that aims to render DeFi’s high returns available to the planet, adding financial options to the underprivileged investor group.
For More Details About Cook Protocol :
Telegram Group: https://t.me/cook_english
Article by Anton De Mel