To many DeFi is all about hype which will meet its doom, but optimists believe that DeFi is everything that crypto should be. Sinking its teeth in the DeFi craze is Crypto.com, a giant conglomerate that deals with payments and the exchange of crypto assets, has announced that it will be entering it. The foray into the world of Decentralized finance by Crypto.com is through a novel platform called DeFi Swap.
A supposed whitepaper published yesterday about this latest development, which said that DeFi Swap will be a fork of the popular Uniswap decentralized exchange. The differences apart from the aesthetic changes are in the choice of the tokens, geographical restrictions, and most importantly a yield farming incentive based on CRO which is the token of Crypto.com Chain. Users who stake their CRO token with the exchange will be eligible for a reward of additional tokens which are allocated on a daily basis.
If the users stake higher amounts it will also provide holders the entitlement to higher yields. This will be based on a multiplier which increases after every year of staking which is good news. The minimum amount which is required for the boost is 1,000 CRO which is worth $160 as of now. The token rewards which get accrued will be subject to a vesting period of 30 or 90 days. This will in turn depend on whether the staked amount is higher or lower than 100,000 CRO which amounts to $16,000.
The new scheme is not close to the conventional yield farming schemes available in the market. But it sure comes with the warnings of vesting. This could prevent some of the excesses of previous schemes wherein funds can move rapidly from one coin to the next in a matter of a few weeks. As per Crypto.com’s calculator, the annualized yields could be higher than 1,000% if you stake 500,000 CRO ($80,000) for two years. The rates will obviously be subject to change because it still remains to be seen if it can remain high throughout the period.
CEO of Crypto.com Kris Marszalek said in one of his interviews around this:
“Building an entire ecosystem and DeFi products are an important part of our roadmap.”
In a rather teasing tone, he also said that DeFi wallet development is also on the anvil. The organization will hence follow Binance’s repository of DeFi-friendly products. Crypto.com’s strategy will be Ethereum focussed and its DeFi Swap product also has some similarities with SushiSwap which is yet another UniSwap fork that attracted users through an incentive scheme. But some of the features make it decentralized more than its competition. The platform is IP-restricted from jurisdictions such as the USA and the People’s republic of China other than those states detected in the sanction list. Marszalek also added,
“Compliance, privacy, and security are the foundation of everything we do and it determines key product development decisions.”