Cream Finance Project Review: "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:
Project Insight

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 De-Fi community. Huang who is no stranger to the industry, being the creator of several Ethereum based tokens and social media companies, bootstrapped the growth of the project 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 amongst other benefits.


Cross-Chain CREAM



Originally the team planned to launch on the Binance Smart Chain (BSC) first, CREAM decided to launch early, on the Ethereum Network. This was completed on August 3rd, 2020 and shortly followed by its launch on the BSC on September 12th, 2020. Since their launch, Cream has gained traction on the Ethereum Network, offering complete lending and borrowing service, alongside yield farming, staking, and swap functionalities to Ethereum users. 

Cream V2 Iron Condor onETH

By launching on the BSC, Cream takes advantage of the 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 the BSC  Network making granting the benefits of high speed and low-cost transactions on the BSC. For now, Cream has limited products available on the BSC, the full scale of products can be used on Ethereum. While all services are not offered to BSC users, the much smaller transaction fees make it a great place for users to start, before being gauged for $50+ for each transaction on Ethereum.

CREAM Dashboard on BSC

On the BSC you can choose to Lend and Borrow, earning $CREAM tokens, as an incentive for both lending or borrowing. As the team works hard I'm sure more of the already available features on the Ethereum Network will also be released for the BSC community shortly.

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 white-listed  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 137%
  • 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

Can't wait to see these features here on the BSC!!


$CREAM Token

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, 495,782 are in circulating supply on the two different chains, 128,250 on the BSC and 367,532 tokens on the Ethereum Network. 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


Conclusion




The collaboration and partnerships with prominent De-Fi projects such as Yearn Finance, Compound, and SushiSwap make CREAM a versatile project. Users can take advantage of its lending and borrowing mechanisms in a plethora of different strategies, while simultaneously granting users liquidity incentives. The protocol aims to innovate on existing working models, such as the AMM which makes use of 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 has its own upsides earning from fees and being the governance token.

I can only say this, what can you expect when you fork all the best projects in the De-Fi 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 De-Fi apps as the bull-market roars onward. 


For more information, or if you wish to stay up to date on the project, check out 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.