Excavo Finance: Decentralized Automated Market Maker Protocol

What is Excavo Finance

Friends, imagine when we usually go to a bank or a stock exchange to make a transaction, don’t we always need an intermediary to help us complete it? For example, the bank helps you transfer money, or the broker helps you buy and sell stocks. In the blockchain world, there is something called “Decentralized Finance” (DeFi), which aims to get rid of these intermediaries and let everyone transact and engage in financial activities directly. Excavo Finance (abbreviated as CAVO) is such a project. It was born in 2020, runs on the Ethereum blockchain network, and aims to provide a decentralized trading platform for professional traders.

You can think of Excavo Finance as a “smart digital trading marketplace”, except this market has no boss— all the rules are written in code and run automatically. Its core function is a system called an “Automated Market Maker” (AMM). Simply put, you don’t need to wait for someone to buy your coins or sell coins to you; instead, you trade directly with a “liquidity pool” managed by smart contracts. This pool contains various digital assets, and the system automatically prices them based on the ratio of assets in the pool, allowing you to complete trades at any time.

Target Users and Core Scenarios: Excavo Finance is mainly aimed at experienced professional traders. They can engage in digital asset arbitrage (buy low, sell high) on this platform, or earn returns by staking or lending CAVO tokens.

Typical Usage Flow: If you want to trade on Excavo Finance, you can connect your Ethereum wallet and swap ERC20 tokens. You can also provide liquidity to the platform’s pools (that is, deposit your digital assets into the pool), and in return, you’ll receive Liquidity Tokens and xCAVO tokens as rewards.

Project Vision and Value Proposition

The vision of Excavo Finance is to build a truly decentralized trading solution that can rival, or even surpass, traditional centralized exchanges (CEXs). It aims to achieve fast trade settlement, large trading volumes, and ample liquidity, while adhering to the core blockchain philosophy: no single controlling party, everyone can participate, and anyone can build on top of it.

Core Problems to Solve: In early decentralized trading platforms, although intermediaries were removed, there were still issues with order book inefficiency and insufficient liquidity. Excavo Finance addresses these pain points by introducing the Automated Market Maker (AMM) model, making trading smoother.

Differences from Similar Projects: Excavo Finance stands out by adopting an AMM protocol based on the “constant product formula” and is specifically designed for professional traders. In addition, it features an innovative token issuance model and a token price protection mechanism.

Technical Features

The technical foundation of Excavo Finance is a smart contract system built on the Ethereum blockchain. You can think of it as a set of “trading rules and programs” that run automatically on Ethereum.

Technical Features:

• Ethereum Compatibility: It is an on-chain system based on Ethereum, which means it is compatible with most Ethereum wallets, making it convenient for users.
• Smart Contracts: All trades and protocols are automatically executed via smart contracts. Smart contracts are like “self-executing contracts” on the blockchain—once conditions are met, the agreed operations are completed automatically, without human intervention.
• User-Friendly Interface: The project provides a convenient and intuitive user interface (UI) and a set of trading tools, making it easier for traders to get started.

Technical Architecture: Its core is the Automated Market Maker (AMM) model, which manages assets in the pool based on a “constant product formula.” Simply put, the product of the two assets in the pool always equals a constant, ensuring that no matter how large the trading volume, there are always enough assets in the pool to complete trades.

Consensus Mechanism: Since Excavo Finance is built on Ethereum, it naturally follows Ethereum’s consensus mechanism. Ethereum has now transitioned from Proof-of-Work to Proof-of-Stake, meaning the network’s security is maintained by validators staking ETH, rather than by competing with massive computing resources.

Security Audit: To ensure platform security, Excavo Finance chose the well-known blockchain security company Hacken for a security audit, which it successfully passed. This is like hiring a professional security expert to check your digital safe to ensure it’s robust enough.

Tokenomics

CAVO is the native token of the Excavo Finance project. It is not just a digital currency, but also the “fuel” and “voting power” of the entire protocol.

Tokenomics Features:

• Reward Mechanism: The project aims to reward early participants and encourage them to provide liquidity, thereby reducing price slippage during trades. Price slippage refers to the difference between your expected transaction price and the actual execution price—the more liquidity, the smaller the slippage.
• Fee Reduction: Traders can reduce trading fees by burning CAVO tokens, or proportionally reduce fees by staking CAVO tokens.

Basic Token Information:

• Token Symbol: CAVO
• Issuing Chain: Ethereum (ERC20 standard token)
• Total Supply/Max Supply: There are slight discrepancies in different sources regarding CAVO’s total supply. Early materials show a max supply of 1,000,000 CAVO; after a tokenomics adjustment in December 2020, the total supply was reduced to 18,500 CAVO. The latest information shows a max supply of 25,000 CAVO.
• Current Circulating Supply: As of now, CAVO’s circulating supply is 0. This means there are currently no CAVO tokens circulating in the market.
• Inflation/Burn Mechanism: CAVO tokens are issued via an innovative model, gradually released over 36 months. The daily token distribution depends on the CAVO price in the CAVO/ETH pool. If the price falls below a preset threshold, no new tokens are minted or distributed that day—this is a price protection mechanism.

Token Use Cases:

• Governance: CAVO is the governance token of the Excavo protocol. Holders may have the right to vote on the project’s future direction.
• Trading Arbitrage: Since CAVO is a frequently traded cryptocurrency (though currently with zero circulating supply), its price volatility provides arbitrage opportunities for traders.
• Earning Yield: Users can earn returns by staking or lending CAVO.
• Lowering Trading Costs: By burning or staking CAVO, traders can enjoy lower trading fees.

Token Distribution and Unlocking Information: Tokens will be gradually released over 36 months. Specific allocation details (such as proportions for team, investors, community) are not detailed in the available information.

Team, Governance, and Treasury

The success of a project depends on the efforts of the team behind it and a sound governance structure.

Core Members: The founder of Excavo Finance is Eugene Loza, an independent financial analyst and professional trader who was once ranked number one on TradingView.com. He was also named the most popular trader on Bitcoin.com and has served as an advisor to several blockchain projects.

Team Features: The Excavo team consists of a group of independent financial analysts, traders, asset managers, economists, and IT developers. This indicates the team has professional backgrounds in financial analysis, trading strategies, and technical development.

Governance Mechanism: CAVO is the governance token of the Excavo protocol. This means CAVO holders can theoretically participate in project decision-making, such as voting on protocol upgrades and parameter adjustments. However, the specific governance process and voting mechanism are not detailed in the available materials.

Treasury and Runway: There is no detailed information available regarding the size of Excavo Finance’s treasury or funding reserves.

Roadmap

The project roadmap is like a map guiding the future, recording important past milestones and future development plans.

Key Historical Milestones and Events:

• 2020: Excavo Finance project launched.
• September 2020: Published an article introducing the Automated Market Maker (AMM) and CAVO tokenomics.
• October 2020: Partnered with Hacken for a security audit, which was successfully passed.
• December 2020: CAVO tokenomics adjusted, total supply reduced.
• January 2021: Official launch of the Excavo.Finance Automated Market Maker (AMM) platform.
• February 2021: Announced partnership with Prasaga.
• December 2021: Collaborated with GT-Protocol for an IDO (Initial DEX Offering), and announced IDOs with Cheesus DeFi and NFT Rating.

Future Key Plans and Milestones: There is currently no clear future roadmap or specific development plan available. Some materials mention CAVO’s market potential, but no specific timetable or feature updates are provided.

Common Risk Warnings

Investing in any cryptocurrency project carries risks, and understanding these risks is crucial. Here are some risk reminders that may exist for Excavo Finance:

• Technical and Security Risks

  • Smart Contract Risks: Although the project passed Hacken’s security audit, smart contracts may still have unknown vulnerabilities. If a smart contract fails, it could result in user asset losses.
  • Platform Stability: As a decentralized trading platform, its stability and performance may be affected by Ethereum network congestion, smart contract complexity, and other factors.

• Economic Risks

  • Price Volatility: The cryptocurrency market is highly volatile, and the price of CAVO tokens may fluctuate sharply at any time.
  • Liquidity Risk: Currently, CAVO’s circulating supply is 0, and trading volume is extremely low or even unavailable. This means you may find it difficult to buy or sell CAVO tokens, or face significant price slippage when trading.
  • Low Market Recognition: CAVO’s market value is currently 0, ranking low in the market, and market recognition of its value is not high. This may make it difficult for its price to grow.
  • Project Activity: Although the project was active in 2020-2021, current market data (such as zero circulating supply and low trading volume) may indicate low activity or suspension.

• Compliance and Operational Risks

  • Regulatory Uncertainty: The global cryptocurrency regulatory environment is still evolving, and future policy changes may impact project operations and token value.
  • Operational Risk: If the project team stops maintenance or development, or fails to attract enough users and liquidity, the project may face stagnation risk.

Please Note: The above risk reminders are not exhaustive. Cryptocurrency investment is highly risky. Please be sure to conduct thorough personal research and risk assessment.

Verification Checklist

When delving into a project, it’s helpful to check some key public information sources.

• Block Explorer Contract Address: The contract address for CAVO tokens on Ethereum is
  0x24ea...3cc1078
  . You can check this address on Ethereum block explorers (such as Etherscan) to view token issuance, holder distribution, and transaction history.
• GitHub Activity: Excavo Finance maintains code repositories on GitHub, such as
  excavo/excavo-documentation
  (whitepaper) and
  excavo-contracts
  (smart contracts). You can visit these repositories to check code update frequency and community contributions to assess project development activity.
• Official Website: The project’s official website is https://excavo.finance.
• Whitepaper: The project’s whitepaper can be found on GitHub: https://github.com/excavo/excavo-documentation/blob/master/EXCAVO%20Whitepaper%20final.pdf.
• Social Media:
  • X (Twitter): https://twitter.com/EXCAVO
  • Telegram: https://t.me/excavochannel and https://t.me/excavo_chat

Project Summary

Excavo Finance (CAVO) is an Ethereum-based decentralized finance (DeFi) project launched in 2020, centered around an Automated Market Maker (AMM) protocol designed for professional traders. It aims to enable digital asset trading without intermediaries via smart contracts and to solve the liquidity issues faced by early DEXs.

The project’s highlights include a team of experienced financial analysts and traders, as well as an innovative token issuance model and price protection mechanism. The CAVO token is not only the platform’s governance token but can also be used to reduce trading fees and earn yield. The project was active during 2020-2021, releasing a whitepaper, passing a security audit, and establishing several partnerships.

However, it should be noted that the current circulating supply of CAVO tokens is 0, and both market value and trading volume are extremely low or even unavailable. This may indicate that the project’s current activity is low or its market performance has not met expectations. In addition, there are some inconsistencies in different sources regarding the total supply of CAVO tokens, which need further verification.

In summary, Excavo Finance offers an interesting decentralized trading model, but its current market status and activity level require cautious evaluation by investors. Remember, this is not investment advice. Always conduct comprehensive personal research (DYOR) before making any investment decisions.