Carbon Protocol

What is Carbon?

Carbon is a decentralized cross-chain financial protocol designed to facilitate scalable and secure trading of derivatives and sophisticated financial instruments such as options, futures, and bonds. Built as a scalable Proof-of-Stake (PoS) blockchain, Carbon utilizes the Cosmos-SDK framework and the Tendermint Core consensus engine to achieve fast finality, high transaction throughput, and short block times (~1.9 seconds). The protocol is fully EVM (Ethereum Virtual Machine) compatible via Ethermint, an open-source Cosmos app-module.

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Recent Video Interview

Main points of the interview:

• Mark Richardson, project leader at Bancor, discussed Carbon, an automated swing trading machine for on-chain trading.
• Carbon enables users to set buy and sell ranges for ERC20 tokens, automating range trading.
• It supports strategies like range and limit orders, allowing users to trade within specified price ranges.
• The platform simplifies liquidity provision and strategy updates, eliminating the need for manual withdrawal and redeployment.

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Carbon Core

• Native modules written in native code (e.g., Golang) enabling scalable features such as on-chain central limit order books (CLOBs), trading and margin engines supporting perpetual contracts and spot trading, lending and borrowing markets, minting of stablecoins, and bridging of assets from EVM, IBC, and non-IBC chains.
• Spot and liquidity pools with automated market makers showcased in dApps like Demex.

Carbon EVM

Carbon EVM provides a seamless environment for deploying Ethereum Virtual Machine (EVM) compatible smart contracts, written in languages like Solidity and Vyper. These smart contracts can interact with Carbon's built-in DeFi and trading modules, enhancing the protocol's functionality. Alternatively, they can operate independently, leveraging cross-compatible ICS-20 <> ERC-20 tokens for interoperability with other chains. Moreover, Carbon EVM exposes a fully compatible Web3 JSON-RPC interface, enabling interaction with Carbon through widely used Ethereum wallets and clients. This compatibility ensures a familiar and convenient experience for developers and users, bridging the gap between the Ethereum ecosystem and Carbon's decentralized finance platform.

Tendermint Core

Tendermint Core serves as the foundational consensus mechanism for Carbon, employing a delegated Proof-of-Stake (dPOS) system. This mechanism leverages Tendermint Byzantine Fault Tolerance (BFT), offering pivotal advantages to the Carbon protocol.

Firstly, Tendermint BFT ensures robust security by tolerating the presence of malicious actors, commonly referred to as "Byzantine" actors, within the network. Through a process of voting and consensus, Tendermint BFT ensures that even in the face of adversarial behavior, a majority of honest actors can reach a consensus. This resilience against Byzantine faults fortifies the integrity of the Carbon protocol, safeguarding it against potential attacks and ensuring the legitimacy of transactions.

Moreover, Tendermint BFT delivers exceptional performance, characterized by its swift block production and finality. By employing a deterministic voting process, Tendermint BFT enables rapid confirmation of transactions, enhancing the efficiency of the Carbon protocol. This rapid transaction processing capability is instrumental in facilitating seamless and timely execution of financial transactions and operations within the Carbon ecosystem, contributing to a smooth and responsive user experience.

Why "Carbon"?

The name "Carbon" embodies the protocol's vision to serve as the core of decentralized finance (DeFi) ecosystems, akin to carbon's role as the universal building block of life. Like carbon's properties of being highly connective, versatile, and stable, Carbon protocol aims to facilitate interoperability between blockchain networks, adapt to various financial constructs, and provide security to users through its specialized chain architecture.

Connective:

• Facilitates interoperability between siloed blockchain networks, fostering collaboration and innovation in a decentralized manner.
• Carbon's ability to power cross-chain capabilities across sovereign chains promotes greater exchange of value within the DeFi ecosystem.

Versatile:

• Adaptable architecture utilizing Cosmos-SDK allows integration and innovation, empowering a multitude of financial constructs and use-cases.
• Carbon's capability to support diverse innovations, from AMM-backed orderbooks to derivatives markets, reflects the versatility of the carbon element.

Stable:

• Security ensured through a specialized chain architecture secured by a large network of validators, facilitating safe transactions.
• Robust architecture supports open financial markets, enabling seamless and secure operation of decentralized paradigms.

Partners

Carbon partners with/is backed by: Cosmos, Tendermint, DeFiance Capital, NGC Ventures, NEO, Poly Network, Zilliqa, DACM, Dusk...

Carbon Protocol Price Analysis

As of November 24 2024 Carbon Protocol has a marketcap of $3.4M. This is {{percentagefromath}} from its all time high of $0.103084. In terms of its tokenomics, there's a total supply of 2.2B with 80% currently outstanding. Keep in mind Carbon Protocol has a fully diluted value of $4.2M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.