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Covo Finance Review 2024: Rewards, Fees & Pros
Luis Clark
- URL: https://covo.finance
- Headquarter: N/A
- Year Founded: 2023
- Platform App: Web and mobile
- No. of Cryptos: 8+
- Native Token: Yes (COVO Finance Token)
- Fiats Available: N/A
- Withdraw Method: MetaMask and WalletConnect
- Payment Method: WalletConnect and MetaMask
- KYC Verification: N/A
Covo Finance Review: Our Opinion
Covo Finance is a newly launched decentralized exchange on the polygon network that is still finding its footing in the industry.
It supports only a handful of popular cryptocurrencies like Polygon, Bitcoin, and Ethereum, offering average leverage (up to 100×) on them.
Unlike its competitors Uniswap and PancakeSwap, Covo Finance also supports the trading of Metals and Forex using crypto assets as collateral.
Covo Finance supports zero slippage as well.
An Overview of Covo Finance
Founded in February 2023, Covo Finance is a decentralized perpetual exchange on the Polygon network that offers leverage trading on over 20+ markets including Forex, cryptocurrencies, and metals using crypto as collateral.
Though it was launched on the Polygon network, Covo Finance is now on the Binance Smart Chain as well.
Concerning services, the exchange offers trading parameters and technical tools such as stop losses, take profit, reduce only, limit, and up to 100× leverage.
It also offers a Share Protocol Revenue program that allows DeFi traders to not just profit from leverage trading but by providing liquidity to USDC and MATIC liquidity pools.
Then there’s the Cross-chain bridge, which allows DeFi traders to bridge tokens including USDT and USDC to blockchain networks like Arbitrum, Ethereum, Binance Smart Chain, and Polygon network.
Pros
- Low trading fees
- Supports leverage trading
- Supports perpetual futures trading
- Offers staking rewards for its native token
Cons
- Limited cryptocurrencies
- No educational resources or support materials
Covo Finance Review: Unique Features
Covo Finance Token
Just like most decentralized and centralized exchanges, Covo Finance has its native token. The Covo Finance Token is the native token of the Covo ecosystem.
The Covo token is the governance and utility token of the platform.
Covo token holders can vote on proposals that influence the direction of the exchange. And Covo Token holders can also stake their Covo tokens and earn rewards. Covo token stakers receive several rewards. This includes returns of 30% of all generated protocol fees. This reward is paid in MATIC and escrowed COVO tokens (esCOVO).
The reward can be staked for more reward or vested.
Generated Protocol fees are in MATIC tokens and Multiplier Points which boost yield without contributing to token inflation.
COVO token has an initial maximum supply of 210 million COVO tokens with a market cap of $1.1M. 150 million COVO tokens are paired with USDC for liquidity on Uniswap.
60 million COVO tokens are kept for rewards vesting from escrowed COVO rewards. The vested tokens are converted into COVO Finance after 12 months of vesting.
This makes escrowed COVO Finance emulsion a pattern of locked staking that prevents users from selling their Covo tokens immediately. It also prevents inflation.
Covo Wallet App
The Covo Wallet app is a multi-coin non-custodial crypto DeFi wallet that allows you to buy, sell, store, and trade over 8 cryptocurrencies with 50X Leverage.
The app supports the purchase of supported tokens with several third-party payment methods including Bank account, credit card, debit card, Apple Pay, etc.
It also allows you to send and receive crypto from external wallets directly from your account.
Covo mobile wallet app is a DeFi Wallet, which means the wallet acts as your gateway to the open decentralized finance ecosystem. You can stake and earn interest on your tokens, and trade on decentralized exchanges all from within the app.
The app features advanced data and visuals which help you manage your portfolio performance. The available tools enable you to track your profit while minimizing risks for each crypto asset against the cost basis of your position.
The app also offers customizable fees. This feature allows you to decide the network fee. You can increase the network fee for faster network confirmations or you can lower the fee when you are not in a rush.
The mobile app offers advanced tools for experienced crypto traders. It supports perpetual futures trading with the option to leverage trade up to 50X leverage.
It offers a cryptocurrency price monitoring tool that empowers you to keep tabs on the values of more than 200 different cryptocurrencies.
Cryptocurrencies Available on Covo Finance
Covo Finance currently supports 9 cryptocurrencies. Available cryptocurrencies include Ethereum, Bitcoin, Aave, Cardano, Arbitrum, Binance Coin, Polygon, Solana, and Near protocol.
Can you Buy and Sell NFTs on Covo Finance?
No, you cannot buy and sell NFTs on Covo Finance. The decentralized trading exchange only supports cryptocurrencies for leverage trading.
Fees
Covo Finance takes advantage of the Polygon network to charge low fees with zero slippage. The fees generated by Covo are lower when compared to other exchanges.
Its overall trading fees are up to 0.1% per transaction which is considerably lower when compared to its competition.
Payment Methods
Covo Finance is a decentralized leverage trading platform, which means unlike centralized exchanges it does not directly support fiat currencies. So, to deposit funds to leverage trade you’ll have to use supported Web3 crypto wallets which include WalletConnect and MetaMask.
Covo Finance Security
Covo Finance is 100% a non-custodial exchange on the Polygon Network. This means the platform has zero control of the private keys to your crypto assets and they are not susceptible to any security breaches on the platform. You are in full control of your assets. You can trade supported cryptocurrencies directly from your crypto wallet without needing to hold the assets on a centralized exchange.
As a non-custodial wallet, Covo does not have access to your funds. You have full custody of your 24-word recovery phrase and your 6-digit passcode.
Covo has several security measures in place to ensure round-the-clock security of the platform and prevent security breaches. If the platform suffers a security breach, your funds will not be affected because Covo does not have the private keys to your coins.
Staking Rewards
Covo Finance allows users to stake Covo tokens on the exchange in exchange for up to 30% gains in return.
DeFi traders can also profit by receiving a share of generated protocol fees and rewards as well as participating in governance decisions of the exchange.
Supported Countries
Covo supports over 150+ nations including India, United Arab Emirates, the United Kingdom, France, Spain, etc.
DeFi traders can also profit by receiving a share of generated protocol fees and rewards as well as participating in governance decisions of the exchange.
Opening a Covo Finance Account
Covo Finance is a decentralized leverage trading exchange. This means that unlike centralized exchanges it isn’t under any regulatory demands to request for Know-Your-Client (KYC) documents.
So you don’t need to sign up by providing a Covo Finance email or personal details.
To use the platform, you just need to go to https://covo.finance.
Once there, click on the blue Launch App button located at the upper right corner of your screen.
Next, click on the green Connect a Wallet button located at the upper right corner of your screen as well.
You’ll see a pop-up showing you the supported Web3 wallets on the exchange, choose either WalletConnect or MetaMask depending on which wallet you’re using.
After selecting your preferred Web3 wallet, you’ll get a pop-up requesting that you sign into your WalletConnect or MetaMask wallet.
Enter your details to sign into your wallet and then click Connect.
After this, you’ll be redirected to the Covo Finance app again where you can begin leverage trading.
Trading Experience
Covo Finance offers a basic trading experience that caters to both intermediate and advanced crypto traders.
It offers an ample selection of order parameters including take profit, stop loss, and limit orders.
The interface is also easy to navigate with charts for each supported trading pair.
The exchange is, however, limited in the number of crypto trading assets available (just 8+).
It also offers a small number of markets when compared to competitors like Uniswap with over 1,000 markets.
Customer Service
Customers can contact the Covo Support Team via the Covo Finance email. The platform also has a Telegram community as well as a Twitter page where users can stay updated about the platform.
Customer Satisfaction
Covo Finance is a new exchange with very little information on the web. The platform has a few reviews online, most of which are from users who haven’t made up their minds about the platform yet.
Does Exchange Offer Education?
Yes, Covo Finance offers education on leverage trading and more via its docs page, which can be accessed from the main menu on its official website.
The docs file provides information on Covo Finance’s services and gives general definitions of terms used on its website.
However, its docs file is far from comprehensive and some links lead to 404 error pages.
Is Covo Finance Right for You?
Covo Finance is right for crypto traders looking to participate in decentralized leverage trading for low fees and zero slippage. It isn’t for users in the United States or those who are searching for a large selection of cryptocurrencies and tradable pairs
Final Thoughts
Covo Finance still has a long way to go. The newly launched decentralized exchange supports a limited selection of assets and has poorly written docs about its services.
That said, the fees generated on Covo are low, especially for Covo token holders, and high staking rewards.
To understand Crypto Decentralized Exchanges better and explore different options, we suggest reading our thorough Biswap Review.
FAQ
Most frequent questions and answers
Covo Finance is a decentralized perpetual exchange on the polygon network that allows DeFi traders to trade in over 20 markets including Forex, indices, cryptocurrencies, and Metals while using crypto in their Web3 wallet as collateral. It also offers leverage trade which allows you to make profits by borrowing funds from the available liquidity pool.
A decentralized perpetual exchange allows users to trade futures or perpetuals without an expiration date via smart contracts.
The largest and most popular decentralized exchange is Uniswap.
A 20× leverage means that the exchange will multiply your deposit by 20 when you’re trading in leverage. For instance, if you deposit $500 in your crypto wallet and open a MATIC position with 20× leverage, your $500 will become $10,000.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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