Kovrita project exists to empower decentralized cryptocurrency exchanges and to solve the most fundamental problems within the cryptographic currencies ecosystem. Project’s solutions are addressing high price volatility, market manipulations and are geared toward mollifying the lack of autonomy of diverse digital assets and technologies in their market valuation.
Kovrita project’s philosophy lies primarily in full support of the decentralization concept and development of open-source software. The project team’s ultimate goal is to make a major contribution within the cryptographic space, by not only developing the tools and platforms for exchanging digital assets exclusively for trading and investment purposes but also to facilitate the expansion of blockchain technology usage into wider areas of people’s everyday activities and interactions.
The name “Kovrita”, as well as one of the main project’s concepts, is derived from the word “Hedged” (or “Covered”) in Esperanto. Accordingly, just like the Esperanto language itself, the Kovrita coins are created to become global in their utilization and ownership, without direct attachment to any particular geolocation, spoken language, political system, or a culture.
Starting from the creation of Kovrita US Dollar crypto coin (USDk), the primary focus of the project is to create a set of stablecoins, representing major fiat and cryptographic currencies. From the very beginning of project operations and in its innovative path to the complete decentralization of such coins, we are utilizing the model of distributed ownership and custodianship of the assets which are hedging the Kovrita coins.
One of the important project’s objectives is to develop a new type of decentralized exchange (DEX) platform. In comparison to the existing today DEXes, the novelty of such platform is in its greatly increased liquidity index for all traded assets. Such an increase can be achieved because each of the assets will be individually paired with one or more stable, decentralized Kovrita coins, serving as platform’s internal Trading References (c).
In its yet another innovation related to DEX development, Kovrita project is taking the approach of creating a large pool of stablecoins first and only then using them as solid, high liquidity base to develop its DEX platform. Notwithstanding and because of the decentralized nature of Kovrita stablecoins, they may also serve well to any third party DEXes by power-boosting their wider adoption and expansion. These processes are highly desired in the crypto space, as they should greatly reduce the possibility of market manipulations, lead to price volatility stabilization and open the way to the price discovery processes via natural, fair and asset-to-asset independent trading.
Kovrita stablecoins are initially created as a set of Ethereum contract-based (ERC-20 standard) coins. They are: (1) Algorithmically issued and destroyed by the array of software oracles, in real-time, in full accordance with the public’s demand; (2) Hedged by the fiat money and cryptocurrencies “basket” in a decentralized manner.