This protocol uses a concept called TVPL (total value permanently locked), which guarantees that there is liquidity available. As the name suggests, Cvault finance provides vaults, where you can lock up your liquidity and receive ROI.
CORE’s ecosystem allows its users to earn rewards from a growing number of strategies, by providing liquidity in one of three liquidity pools. The protocol consists of three pools for Ethereum, Bitcoin and DAI. The underlying assets of LP tokens are locked forever, allowing the protocol to utilize unique strategies for collateralized loans, options trading, and one-sided liquidity additions in Multi Vaults. Each trade on the network is charged with a Fee On Transfer (FoT) which is distributed to staked Liquidity Pool Providers. Assets that enter the ecosystem are converted to cTokens, by using an on-chain data generating wrapping mechanism called ERC95.
The goal of CORE is to build a sustainable money making machine and to unite various DeFi products in one. Due to having permanently locked liquidity, there is a floor price for CORE tokens, meaning you will always get a minimum amount of underlying tokens for your CORE and it cannot go to zero.
This floor also rises over time.
$CORE is close to how a hedge fund works. Limited Partners (here liquidity providers) provide liquidity to a General Partner (protocol smart contracts) to get yield in exchange of a management fee (here the FoT).
The hedge funds are often subject to a lock-up period to enable the GP to implement the strategy without causing harm to other LPs. $CORE locks the liquidity for this exact same reason. Stabilizing the liquidity is absolutely key to generate yield (and trust), although the ability of $CORE to carry out successful strategies depends of course on the quality of the code (the GP).
As in the hedge fund industry, there's a perfect of alignement of interests between the stakeholders: here the LPs, the tokens holders and the dev team. There is a smart feedback loop where the dev team needs the strategies to function to get paid, which benefits to LPs, ... which dries up the velocity of the $CORE token, increasing the price.
The triptych ETH/BTC/DAI liquidity pools along with the ERC-95 wrapping is incredibly smart imo as it creates a dynamic representation of the entire crypto market while... producing "in-house" data on price volume and volatility. Unlike other protocols that rely on oracles to price the greeks on options, $CORE is entirely self-reliant which considerably decreases the risk for the protocol users.
Decentralized asset manager with multiple product applications possibilities.
That's where the governance plays a part: many talented people from finance+devs will be able to push their solutions for adoption ... WITHOUT having the liquidity. Hedge fund managers take 1-2 years to raise their funds!
As a LP token holder, yield will be created in the next bear market and the positive feedback loop will continue to support the tokens price.
@CORE_Vault simply decentralizes a model that has been working successfully for 100 years (hedge funds) while being protected against volatility (which burst most of Hedge Funds).
From a price target standpoint, a 30-50K price or a 300-500M market cap as I can read accross CT doesn't make any sense imo. If it succeeds, it's a multi-billion protocol without any doubt. But I'm ready to get the current floor price (4 ETH)
@CORE_Vault is now listed in the DeFi rankings with $50M TVL.