Cream Finance was launched this August without less ostentation. This year it came with a lesser bang but with the goal of building an open yet deeply inclusive system that was based on Compound Finance from which it was forked. Cream Finance was initially launched as a peer-to-peer lending platform on the Ethereum network similar to the lines of DeFi protocols. Eventually, it made a switch to Binance Smart Chain which went live on September 1’st.
Cream now has a governance token with a total supply of 9 million. The token distribution was done mainly to tempt the liquidity providers to the platform. It has total liquidity of $4.6 million as of now. A reasonable 10% of the CREAM tokens were also distributed to seed the project which majorly operates under the core guidance of Jeffrey Huang, the founder. It has already begun the process of yielding control to the community.
Source: Cream Finance Twitter account
Now the latest on the front of Cream Finance is the launch of its Swap automated market maker which lets the users of the lending platform so that they can switch their collateral positions without the need to leave it.
At present yield, farmers need to use token swapping platforms such as Uniswap to convert their assets. These steps only add to the thickening of the layers paving way for further losses with huge fees in addition to the burdensome secondary fees of 0.3% per trade as is in the case of Uniswap.
This is exactly where Cream Swap, a Balancer fork which has a Uniswap-like user interface aims to solve this pricking issue. Yield farmers who create and deposit into the liquidity pools on this new platform will get a pool token called CRPT or the Cream Pool Token. As a result, the fee structure is competitive and lower than Uniswap with all exchange fees set to 0.25% right from the beginning. Liquidity providers will get 0.2%, while the remaining 0.05% will go to the CREAM network. Apart from the collateral from its own tokens, Swap can also support tokens from Compound, Yearn, Aave, Balancer, Uniswap, and TokenSet. To begin with, there will be 6 pools to be considered: CREAM/USDC, CREAM/WETH, crCREAM/crYFI, crYETH/crYYCRV, yETH/WETH, and yyCRV/USDC.
What sets Cream Finance from its contemporaries is the fact that it hasn’t picked Ethereum over the Binance network. When it was launched, the CREAM price increased to $100. It was followed by a rather quick fallback to around $14 but ever since it has been treading along safely with progress being made. Today’s increase has obviously been triggered by the new AMM launch and token distribution opportunities.
Source: CREAM/USD price – Uniswap
According to Uniswap, the volume on the platform hit a huge and its best high of $6.7 million on September 7th. The liquidity recorded was under $5 million for that day. While SUSHI is believed to be the loading dice, the new DeFi food catching up flavor seems to be CREAM!