2021 was a transformational year for CoinFLEX.
- FLEX Coin price: ATL $0.2 to ATH $7.34 = +3,570%
- User growth: +400%
- Daily trading volume: $47.9M to $9B = +18,689%
- Open Interest: $191M to $444.6M = +132.7%
- flexUSD marketcap: $20M to $385M = +1825%
- flexUSD total interest paid: $17M+
- flexUSD average APR: 10.7%
- AMM TVL: $2.7M to $133M = +4,825%
- AMM ATH volume: $1.5B
- CoinFLEX have the most liquid BCH spot and perp markets in the world
We are incredibly proud of these milestones because they are the result of focusing not only on building for the crypto markets today, but also for what we believe will remain true ten years from now:
- In the crypto markets, end-users care most about liquidity.
- Most investors are passive, not active, meaning they prefer to “set something and leave it” rather than trade multiple times a day.
- Passive capital wants the highest possible yield for the least amount of mental effort and risk.
Guided by these truths, we have created products that enable passive investors to earn yield directly from the volatility and leverage available in the crypto derivatives markets without being a full-time professional trader or money manager.
Last year, CoinFLEX saw success in products, partnerships and events:
With nearly $400 million in market cap, flexUSD – CoinFLEX’s stablecoin – has seen both increasing retail and institutional adoption.
- Not everyone owns crypto, but everyone uses fiat currency. USD-pegged stablecoins are seen as US Dollars on crypto rails. flexUSD is an upgrade on this concept as flexUSD tokens earn interest while held in wallets or used in some form of activity (DeFi, trading, payments, etc).
- The flexUSD interest rate (ranging currently between 10-20% APY) is earned from collateralized lending into CoinFLEX’s futures market, a borrow/lend market called “repo”. flexUSD has paid out $17 million in interest to holders in 2021.
Learning from DeFi-borne financial primitives, CoinFLEX created the first automated market making (AMM) model for the futures market. The hybrid CeFi + DeFi model offers:
- Greater capital efficiency
On November 10, 2021, AMM+ trading volume reached $1.5 billion with less than 10% of that size ($103 million) in total value locked (TVL). TVL skyrocketed from $23 million at the start of August 2021 and reached an all-time high of $133 million later in the year.
- More scalable orderbook trade volumes
This implies more yield to AMM+ stakers as the hybrid model bypasses the high gas fees on Ethereum and is not exposed to the risks of onchain front-running.
First exchange token DAO launched by a centralized exchange.
- FLEXDAO allows for the long-term success of CoinFLEX and incentivizes FLEX holders by providing greater stability to the FLEX market.
- While initially a staking mechanism, FLEXDAO will expand to become a governance and voting mechanism, allowing its community members to vote on many of the critical decisions impacting the future of the exchange.
First smartBCH bridge
CoinFLEX serves an important role as the first bridge between the BCH chain and smartBCH.
- Users can deposit BCH on the Bitcoin Cash network and withdraw on smartBCH, vice versa, enabling Bitcoin Cash enthusiasts easy access to DeFi protocols via the smartchain.
- CoinFLEX has also launched FLEX and flexUSD on SmartBCH. flexUSD has become the dominant stablecoin within smartBCH, and holders who use it in the various DEXes and DApps receive the flexUSD yield even while they trade, lend, and stake.
In 2021, we formed several long-term partnerships with some of the most recognizable names in the crypto space including Bitcoin.com, Copper and Chainlink.
Bitcoin.com is CoinFLEX’s largest partnership. The $30 million deal will bring crypto yield and exchange products to over 25 million wallets. Their users will be able to access these products via both non-custodial wallets and a custodial exchange.
This partnership will strengthen CoinFLEX’s growth trajectory in 2022 and increase metrics across the board including: trading volume, number of active users, and market capitalization.
Copper – A gateway for institutions to access crypto yield products
CoinFLEX partnered with Copper, one of the leading digital asset custody and trading solutions providers. Copper has integrated flexUSD into their ClearLoop network, which is their unique instant clearing and settlement solution that allows institutions to trade the exchange’s products seamlessly with their funds safely secured within Copper’s platform.
You can listen to CoinFLEX CMO, Leslie Lamb, chat with Copper’s Chief Product Officer こちら.
CoinFLEX integrated with Chainlink Price Feeds, which are the most time-tested oracle solution in the industry and serve as an extra layer of reliability. It will be CoinFLEX’s default source of price data in the unlikely event that systems become unresponsive for a short period of time.
Moonpay – First Fiat On-ramp Service
In November 2021, CoinFLEX partnered with Moonpay to integrate fiat onboarding services to users’ CoinFLEX wallets. This allows users to simply purchase crypto with their credit/debit card on the exchange as an alternative to depositing assets directly into the platform wallet. This is great for first time crypto users getting familiarized with the space.
First Global Brand Ambassador
In December 2021, world-renowned poker player Doug Polk became CoinFLEX’s first global brand ambassador. Aside from being known as a poker player, he is a successful content creator and educator. CoinFLEX is incredibly proud to have Doug represent the brand and join us in our effort to help people around the world make the most of crypto.
If you missed these CoinFLEX events, you can catch the recap here:
- Xccelerate: The Future of Finance
- HK Fintech Week – DeFi: Promises Kept, Prospects Ahead
- Crypto Fest The Rising Tide of Institutional Investment: Where Are We & Where Is It Heading?
- Bloomberg APAC Crypto Webinar: The Evolution of Execution
- The Block: The Roadmap Towards Institutional Crypto Adoption in Asia
Additionally, you can learn more about CoinFLEX’s platform from Co-Founders Mark Lamb and Sudhu Arumugam in these interviews:
- CNBC: Crypto yield firm aims to help investors take advantage of market volatility
- Doug Polk Crypto: The Effect of Crypto Regulation on Americans, DeFi in 2021+ and more
- The Trader Cobb Crypto Podcast: Is Coinflex The Best Yield Platform EVER?
- DeFi Slate: Bridging CEX Volumes with AMM Efficiencies
- Crypto Unstacked Podcasts
2022 Market Expectations
Since 2019, the popularity of staking has taken off, allowing passive capital investors to easily earn competitive yield on their crypto assets. There are currently several yield products in the world of crypto and DeFi, fitting different investor appetites. Among these products, the borrow and lend markets in crypto have gained a ton of traction. Currently, most traditional banks are only offering a mere APR of 0.5% on savings accounts in the U.S.. Meanwhile, crypto lenders are earning double digit interest in the markets from DeFi and CeFi opportunities alike.
As the Home of Crypto Yield, CoinFLEX is dedicated to being at the forefront of creating popular yield products for both institutional and individual investors. To give you a sense of the yield-generating opportunities available on CoinFLEX, users are currently earning 10% APY (7-day average)* on flexUSD と 193% APR on in-range XRP AMMs.
For the first time in crypto history, the SEC approved the launch of several bitcoin futures ETFs in 2021. At launch, the first Bitcoin ETF BITO became one of the most-traded ETFs in ETF history. The following two Bitcoin ETF launches saw Bitcoin reach a new all-time high of $69,000. The approval of the ETFs reflects traction among traditional investors and demand for diversified access to crypto in the traditional market.
According to TokenInsight, the total perp trading volume in Q3 2021 alone ($13,428B) was higher than the total perp trading volume in all of 2020 ($12,391B). However, compared to global derivatives, crypto derivatives trading remains in its infancy. With the new suite of crypto yield products being powered by its futures exchange products such as deliverable perpetuals and repo (short-term borrow and lending market), CoinFLEX sees crypto yield 2.0 opportunities being the frontier to watch in 2022. In the next evolution of crypto yield opportunities, users will find new ways of sourcing yield “direct from market” (futures) rather than interact with protocols or centralized intermediaries.
No doubt stablecoins will continue to play a major role in the crypto finance markets and anchor the future of digital finance. A report issued by the European Central Bank notes that since 2020, the market capitalization of stablecoins has increased from $5 billion to $120 billion. With the increasing application of stablecoins, we believe the stablecoin market cap will reach $500 billion in 2022.
CoinFLEX created flexUSD, the world’s first interest-bearing stablecoin, to meet the yield-generation needs of existing and new crypto market participants. The more people use flexUSD, the more likely it is to be adopted on other exchanges and yield-earning platforms, creating a positive feedback loop for its adoption in both CeFi and DeFi. Through the large-scale partnerships formed this year such as Bitcoin.com and Copper, we expect greater retail and institutional adoption of the stablecoin and for its market cap to hit $1 billion in 2022.
Hybrid DeFi and CeFi models
We are seeing the gradual intersection of CeFi and DeFi financial primitives, and CoinFLEX continues to be proactive in its approach to merging the two ecosystems. One way CoinFLEX will be led in the future is through decentralized governance. In December 2021, CoinFLEX launched FLEXDAO to decentralize some of the exchange’s decision making efforts through community feedback. Community-led governance has been critical to the success of many DeFi protocols and CoinFLEX believes other players may soon follow suit as the DAO model becomes an increasingly important part of being a crypto-native company. CoinFLEX will continue on its path toward progressive decentralization in 2022.
Another way CoinFLEX has integrated the DeFi ethos across its product suite is by introducing a new way for passive capital investors to earn yield direct-from-market. For example, building on the existing AMM primitive, CoinFLEX’s AMM similarly enables investors to directly provide liquidity into the markets, only via an orderbook instead of liquidity pools. The hybrid model has resulted in greater capital efficiency for users, allowing them the opportunity to access even higher yields. We anticipate many more CeFi platforms to integrate DeFi financial primitives as a tool for both bootstrapping market liquidity and offering users access to DeFi-like yields.