TL;DR

• COTI + VeilDEX Partnership - VeilDEX is a privacy-first DeFi hub powered by COTI's Garbled Circuits technology.
• Mining Program Live - Users can mine $VDX tokens for free by starting 24-hour mining sessions.
• Referral Boosts - Invite friends to earn +0.2104 VDX/hour per referral, plus 5% of their rewards after token launch.
• Staking Rewards - Stake $COTI or $VDX with up to 26% APR and instant unstake options.
• Deflationary Tokenomics - Buyback-and-burn model supports $VDX value over time.
• Goal - Build a private, censorship-resistant DeFi ecosystem that strengthens the COTI Layer 2 economy.

Privacy has been the missing piece of the DeFi puzzle. While blockchain transparency allows anyone to verify transactions, it also exposes users to risks - frontrunning, phishing, and address profiling. For years, the industry has debated how to solve this without compromising decentralization.

COTI's latest partnership with VeilDEX takes a big step toward fixing it. VeilDEX is a privacy-preserving DeFi hub that leverages COTI's Garbled Circuits technology to make confidential trading and financial services a reality. From private swaps to staking and mining, VeilDEX is shaping up to be the most comprehensive privacy-first ecosystem on COTI L2.

And the best part? Users can already start mining $VDX tokens - for free.

How VeilDEX Works 

VeilDEX is a new privacy-focused DeFi hub built directly on the COTI Layer 2 network. At its core, it’s designed to let users trade, stake, farm - all while keeping their data private and secure.

Unlike most DeFi platforms where every action is fully public, VeilDEX uses COTI’s garbled circuits technology to keep transactions confidential. This means traders can swap tokens, stake assets, or participate in governance without exposing their wallet activity to the entire blockchain.

Its design focuses on three principles:

1. Confidentiality - Thanks to COTI's Garbled Circuits, transaction data stays private by default.
2. Decentralization - VeilDEX is governed by its community via $VDX token holders.
3. Security & Fairness - No MEV exploitation, no frontrunning, and no surveillance.

This approach protects users from address profiling and market manipulation, a major improvement over most DeFi platforms where all activity is public and easily analyzed.

Current Live Programs

1. Free Mining Program

VeilDEX's mining program is the easiest way to get started. No upfront cost, no hardware needed - just start mining from your browser.

How It Works:

• Users can participate in free mining: you simply complete your profile (name, email, verification) and begin a 24-hour mining session.
• VDX tokens generate continuously until the session ends.
• No downtime between sessions - restart immediately to keep earning.

Boost Your Mining:

1. Every referral increases mining rate by +0.2104 VDX/hour.
2. Earn 5% of your referrals' rewards after token launch.
3. New users using your code get 10 free VDX on signup.
4. No cap on referrals - stack your boosts for maximum rewards.

This gamified mining system is designed to build the VeilDEX community organically while giving early adopters a fair share of token distribution.

2. Staking to Mine More

Two staking styles are indicated: flexible staking (more liquid, lower APR) and fixed staking (longer lock-up or commitment, higher APR).

• Flexible staking: you stake either COTI or VDX, mine VDX, benefit from staking rewards. There is mention of ~10% APR for flexible staking in some communications.
• Fixed staking: higher APR up to ~26%. Fixed staking likely requires locking up tokens for a period.

Instant unstake possible in flexible staking (no penalties or waiting) in some cases..

3. Referral Program

The referral system is one of the most generous in DeFi:

1. Share your code with friends.
2. Get +1% mining boost per referral.
3. Earn 5% of your referrals' mined VDX as a bonus.
4. Rewards are claimable after token launch - incentivizing long-term community participation.

This is designed to turn users into evangelists, growing VeilDEX's reach while rewarding those who help bring others in.

What's Coming Next

VeilDEX isn't stopping at mining and staking - a full ecosystem of privacy-first DeFi services is in development:

• Private DEX Trading - Confidential swaps with limit orders, perpetual futures, and prediction markets.
• Liquidity Farming - Provide liquidity to pools and earn rewards.
• Launchpad - Token launches via a fair bonding curve model.
• Governance - Vote on new features, tokenomics changes, and platform direction.
• Deflationary Tokenomics model : Buyback and burn mechanisms reduce supply.
• Cross-chain Expansion - Bridges to Ethereum and Solana to connect liquidity across ecosystems.

Each of these will be powered by $VDX, creating a feedback loop where the token is central to every activity on the platform.

Why Privacy Matters for DeFi

Transparency is great for verification but terrible for strategy. Traders today face frontrunning, MEV (Miner Extractable Value) exploitation, and unwanted surveillance.

By using COTI's Garbled Circuits, VeilDEX removes these pain points without compromising security. Users get all the benefits of DeFi - yield opportunities, liquidity access, governance - but without broadcasting every move to competitors.

This is a major step toward making DeFi as safe, fair, and inclusive as it was meant to be.

Tokenomics and Sustainability

$VDX uses deflationary tokenomics to support long-term value:

• Buyback & Burn - A portion of protocol fees are used to buy back $VDX and burn it, reducing circulating supply.
• Ecosystem Incentives - Rewards are distributed to miners, stakers, and liquidity providers to bootstrap adoption.
• Governance Utility - $VDX holders can vote on upgrades, fee structures, and new products.

This model ensures that as VeilDEX grows, value accrues back to token holders.

The Bigger Picture

VeilDEX isn't just another DEX - it's a DeFi hub built around privacy, fairness, and community control. By aligning itself closely with COTI L2, it strengthens the entire COTI ecosystem while giving users new ways to earn and participate.

VeilDEX commented,

As its roadmap rolls out - with DEX trading, farming, and launchpad features - VeilDEX could become one of the most important drivers of activity on COTI.

Final Thoughts

COTI's partnership with VeilDEX shows how privacy can be a growth driver, not just a feature. Early users have the chance to earn $VDX through free mining, staking, and referrals - a rare opportunity to get in before the full suite of DeFi services goes live.

For users who believe in COTI's vision of a private, decentralized financial ecosystem, VeilDEX is the place to start participating today.