Cream Finance Project Insight: "Crypto Rules Everything Around Me"

CREAM allows users can take advantage of its lending and borrowing mechanisms in a plethora of different strategies, while simultaneously granting users liquidity incentives.

By
Rich
on
February 6, 2021
Category:
BSC News

Introduction

The announcement for CREAM Finance came on July 16th, 2020, when founder Jeffrey Huang announced the launch and roadmap of CREAM Finance, which received tons of attention from the Decentralized Finance (DeFi) community. 

Huang, who is no stranger to the industry, being the creator of several Ethereum-based tokens and social media companies, bootstrapped the project’s growth alongside the team behind CREAM.

CREAM Finance was cloned from the well-known Compound Finance. The Compound team helped in the process and are also early investors in the CREAM Finance Project. On top of this, CREAMS AMM/DEX was cloned from Balancer Finance, utilizing a bonding curve just like the one in the Curve Finance or DODO projects.

Since November 2020, CREAM has partnered with Yearn Finance ($YFI), integrating CREAM’s lending and borrowing features into their protocol. The merger also means that development resources can be combined, increasing TVL for both parties, among other benefits.

Since becoming part of the Yearn finance ecosystem, it has grown to one of the more prominent permissionless, open-source, and multi-blockchain agnostic protocols serving users on Ethereum, Binance Smart Chain (BSC), Polygon, and Fantom. 

MultiChain CREAM

Initially, the team planned to launch on BSC first, but CREAM decided to launch early on the Ethereum Network. The Ethereum launch was completed in August 2020 and shortly followed by its launch on BSC in September 2020. 

Currently, CREAM is live on Ethereum, Binance Smart Chain, and Fantom. The platform integrates with five different blockchains total: Ethereum, Binance Smart Chain, Fantom, Arbitrum, and Polygon (MATIC). 

BSC and Fantom have selections but are not as integrated as Ethereum, with fewer token options and capabilities. The platform also expects to host more Polygon and Arbitrum capabilities soon. 

Since their launch, CREAM has gained traction on all networks, offering lending and borrowing service alongside yield farming, staking, and swap functionalities to DeFi users. 

Cream V2 Iron Condor onETH

By launching on BSC, CREAM took advantage of BSC’s Ethereum Virtual Machine (EVM) capabilities alongside the ability to wrap any coin or token, such as $BTC, $ETH, $XRP, $LTC, and more onto the chain. Users can make use of these on a variety of chains, granting them the benefits of high-speed and low-cost transactions of different chains. 

On BSC, you can choose to Lend and Borrow, earning $CREAM tokens, as an incentive for both lending or borrowing. CREAM lists scores of tokens for lending and borrowing from Binance Smart Chain as well.  

CREAM offers flash loans on Binance, Fantom, and Ethereum for their users on money markets by allowing developers access to undercollateralized loans. There is a catch: the borrowed amount (and fee) must be returned within one transaction block. Flash Loans offer a wide range of use cases, including democratized liquidations, arbitrage, collateral swapping, and interest rate swapping.

For the Ethereum part of Cream Finance, there is a much broader selection of options:

  • Lending and Borrowing
  • Swap assets using CreamSwap utilizing its curve bonding algorithm and utilizing low fees.
  • Swap stable and whitelisted coins on creamY USD Swap
  • Stake to earn $CREAM locking up your tokens for a set duration (1-4 years) earning an APY (annual percentage yield) of up to 119%
  • Yield Farming by providing liquidity, earning from transaction fees and interest paid on loans
  • Finally, there is also an option to stake $ETH for $CRETH2, basically another form of staking getting $CRETH2 as a reward token.
  • Iron Bank brings lending to a new level as this makes undercollateralized loans between protocols possible. More info HERE
CREAM Dashboard on BSC

$CREAM Token

Source

The $CREAM Token is the CREAM Finance governance token, originally with a maximum supply of nine million tokens. This is now drastically lower as the team burned 6.075.000, 67.5% of total supply, leaving the total supply at 2,924,547 tokens. Of those, 766,534 are in circulating supply. The rest of the tokens are locked up in smart contracts to be released on a schedule as incentives to liquidity providers and stakers.

On top of native governance, $CREAM holders will benefit from fees generated on the CREAM platform. Currently, $CREAM can be traded on Binance, SushiSwap, Balancer, BKEX, and UniSwap.

iceCREAM Governance

The iceCREAM token is the governance token of the CREAM platform. Users can use iceCREAM to vote on protocol proposals that update the platform via votes within the community. 

Users can lock their CREAM tokens between one week and four years in exchange for iceCREAM tokens. The amount of iceCream distributed to the user is dependent on the quantity and length of CREAM staked.

One iceCREAM token will equal one vote for future CREAM  Finance proposals. The iceCREAM tokens earned are non-transferable and non-tradable.

With iceCREAM, users can utilize the token for staking, boosting, and, of course, voting. Fifty percent or more of the protocol reserves will be distributed as ycrvIB tokens to iceCREAM stakers. 

Users can change their vote each week with iceCREAM and modify the CREAM emissions (base at .4 to a max of 2.5x) across C.R.E.A.M. Finance markets. The more iceCREAM one stakes, the more CREAM one earns. 


Conclusion

The collaboration and partnerships with major DeFi projects such as Yearn Finance, Compound, and SushiSwap make CREAM a versatile project. Users can take advantage of its lending and borrowing mechanisms in various strategies while simultaneously granting users liquidity incentives.

The protocol aims to innovate on existing working models, such as the AMM, which uses a bonding curve and bridges liquidity across underserved assets. On top of this, the staking and liquidity farming provides solid incentives in the form of $CREAM tokens, which of course, have their own upsides, earning from fees and being the governance token.

The protocol has bug bounty with Immunefi up to $1.5 Million. This is a genuine effort towards security with their users. CREAM is also included in the more significant Armor Alliance Bug Bounty Challenge.

I can only say this, what can you expect when you fork all the best projects in the DeFi space and put them together? This coupled with constant growth and innovation, notably the recent partnerships, sets Cream Finance up to be one of the leading DeFi apps as the bull market roars onward. 

For more information, or if you wish to stay up to date on the project, check out the project and media pages:

Website | Medium | Discord |Twitter

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Rich

Richard is a multilingual writer, located in the Netherlands, husband and father, cryptocurrency and tech enthousiast enjoys long walks and bicycle rides. Fervent Binance Smart Chain projects promotor.

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