Cream Finance ($CREAM): What is it?

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CREAM Finance ($CREAM) stands for Crypto Rules Everything Around Me. The project began with a vision to establish a financial system more accessible than its traditional counterparts. So CREAM has created an ecosystem that can be linked with other Ethereum platforms to efficiently provide a spectrum of services for its users. The liquidity mining trend, which is currently the most talked-about aspect of the decentralised finance (DeFi) space due to its potential high returns has also helped CREAM establish its popularity and footing in this field.

Background

Jeffrey Huang, the Founder of CREAM Finance, believes in the capacity of cryptocurrencies to create an open and inclusive financial system. And through the help of smart contracts, Huang’s team went on to create a DeFi ecosystem that would link together multiple products and services that many users need today.

In recent weeks, the team has been continuously working on expanding its listing and preparing for the launch of its CREAM token. The launch of their beta liquidity mining on 12th August 2020 has been the subject of discussions in some social media platforms.

What is CREAM Finance?

CREAM Finance is a DeFi ecosystem focused on providing lending, exchange, payment, and asset tokenization services. Created as a fork of Compound Finance, it also claims to operate a permissionless and open-source protocol so any other internet participant can be a part of the development of the network, instead of just using it or locking up funds in smart contracts for staking rewards.

Financial inclusion is among the team’s primary goals. And the objective is to be able to achieve it without compromising the safety and security of each user and their assets.

Since CREAM is established on the Ethereum blockchain, it can take advantage of smart contracts that can be used to run Ethereum Virtual Machines (EVM). Such a set-up also allows the CREAM project to have better composability than other DeFi projects.

EVMs can also help community users develop their own decentralized applications (Dapps) on top of the network. However, there is very little detail on the community’s plans for such at the moment.

Since 1st September 2020, CREAM has made the switch to Binance Smart Chain (BSC) so as to take advantage of the transaction throughput and cost-efficient servicing available only on the BSC and other similar chains. In addition, linkage with the Binance Chain can provide them with better liquidity through its access to the biggest cryptocurrencies.

There has not been any report yet on the audits being done for CREAM’s smart contracts. But according to a recent release they made, they recently hired a security adviser to work on the necessary platform developments.

The first monthly payment the team has made to the new adviser totaled to 37,500 CREAM. Some of the more prominent crypto advisers on-board is Robert Leshner, CEO of Compound Finance. Leshner acts as one of the team’s technical advisers.

CREAM’s Lending Services

The emerging trend of DeFi projects facilitating peer-to-peer lending services enticed the team behind CREAM to work on a protocol that can do something similar. Available assets that users can borrow from the CREAM ecosystem include BAL, COMP, ETH, CRV, LEND, REN, BUSD, USDC, USDT, and YFI.

CREAM is looking forward to the launch of BSC. When it is already available, users can take advantage of CREAM’s link with Binance through the BEP2 standard, or pegged tokens, to make the transfers of XRP, BCH, LTC, and TRX much easier.

Without having to wrap tokens, CREAM transactions on BSC can be performed faster and more affordably.

CREAM Token and Liquidity Pools

The CREAM token, i.e. the CREAM platform’s native asset is available on Uniswap and Balancer. As at 25th August 2020, the CREAM token market cap is over $11.8 million, with a circulating supply of 149,927 CREAM. The total supply, however, is at 9 million CREAM.

CREAM was recently launched in August 2020 yet the platform already has a total of roughly $48 million in total value locked (TVL). Although it certainly wasn’t able to emulate Yearn Finance’s ($YFI) meteoric rise, it is still a notable DeFi protocol since it has gained a lot of traction after only being in the market for a few weeks.

Since there is a growing number of crypto users participating in liquidity mining or yield farming, the team behind CREAM also launched their own liquidity mining program. The team publishes vital statistics on their Medium on any changes or updates to their reward systems and pools. Thus giving users the information they need to decide what plays to make.

CREAM SWAP: What is it?

Cream Swap is an automated market maker (AMM) launched on 8th September 2020. This allows users to switch their collateral positions without leaving it. It is meant to be an improvement on the current yield farming model whereby farmers need to utilise token swapping platforms such as Uniswap to convert their cryptocurrencies. This is detrimental to yield farmers because gas fees (which have been skyrocketing due to the number of farmers out there) are incurred, along with trading fees (0.3% in the case of Uniswap).

Enter Cream Swap, a fork of Balancer. Yield farmers who create and deposit assets into liquidity pools on Cream Swap’s platform receives Cream Pool Tokens (CRPT). Cream Swap also has lower fees than Uniswap at 0.25%, of which 0.20% is rewarded to liquidity providers and the remaining 0.05% goes to the CREAM network.

To encourage users to provide liquidity, CREAM will be distributing 3,000 CREAM tokens daily for the CREAM pairs and 500 CREAM for the other pools. To be eligible for this, users will be required to stake their CRPT tokens for 3 days.

The launch of Cream swap has helped CREAM prices to double and CREAM has pushed aside the competition to become the 4th DeFi platform in terms of total value locked.

Conclusion

CREAM is a relative newcomer to this space and we can see that they are continuously building and listing more assets onto their platform. Their newest product, Cream Swap has also brought more users into their platform and consequently boosted the prices of their CREAM token.

The team also update the rewards available on their liquidity mining pools and are transparent on their liquidity mining distribution. So be sure to check their Medium where they provide announcements and updates at least once a day. The team behind CREAM are also very responsive on social media in terms of answering people’s queries about them.

Finally, considering the inclusion of some very prominent crypto personalities and their linkage with the biggest exchanges and protocols in the space, the future of CREAM looks promising so far. Looking at the service they are offering, it sure seems that it fits into what many cryptocurrency users need from the market.

Decentralised Finance (DeFi) series: tutorials, guides and more

With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. We also take a deep dive into popular DeFi topics such as Yearn.finance ($YFI), Balancer ($BAL) and ($COMP).

The DeFi series on this website also covers topics not explored in YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

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The information provided in this article is intended for general guidance and information purposes only. Contents of this article are under no circumstances intended to be considered as investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly encourage you to do your own research before taking any action. Although best efforts are made to ensure that all information provided herein is accurate and up to date, omissions, errors, or mistakes may occur.

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