What is CREAM Finance?

An acronym for Crypto Rules Everything Around Me, CREAM Finance is a combination of DeFi protocols, backed by smart contracts and blockchain. It offers a wide variety of blockchain-based financial services in general, with the aim of making DeFi more accessible and inclusive than its traditional counterpart, CeFi.

The platform offers lending, derivatives, settlement, exchange, market-making, and asset tokenization services. It is currently available for Ethereum and the Binance Smart Chain. The standout feature of CREAM Finance is support for the Ethereum Virtual Machine (EVM), allowing for greater compatibility and composability.

Token CREAM

CREAM Finance’s governance and utility token is also known as CREAM. The token is based on Ethereum’s famous ERC-20 standard. It had a max supply of 9 million, which was later burned to around 3 million, but very few of them (under 150k tokens) are currently in circulation.

The token allows holders to participate in governance and is created as a reward for providing funds to platforms for various purposes. This is an inflation token model and favors the participants rather than the speculators. Furthermore, the value collection mechanism is clearly defined.

CREAM is traded on major centralized and decentralized digital exchanges. The token distribution is as follows: 61.5% for liquidity providers, 23.1% for team and advisors, 7.7% for aggregate finance, and 7.7% for investor seeds. Token holders receive a portion of the profits, as well as the transaction fees collected, as a reward.

What is the CREAM coin used for?

The native token of Cream Finance is CREAM and it acts as the governance token. Furthermore, CREAM is used as a reward to encourage users to interact with Cream Finance through its various protocols by lending, borrowing, or providing liquidity.

Governance: CREAM holders will have management control over Cream Finance. CREAM holders will be able to vote on adding and removing liquidity pools, supporting assets, changing platform parameters, and more.
Participants of the Cream Finance ecosystem can earn CREAM by providing liquidity in the supported pools.

CREAM Services

Borrowing and Lending

Among CREAM’s financial services is the lending protocol, where users provide assets and agricultural output to generate income. Thus, users can borrow capital and pay interest. It is available for both Ethereum and Binance Smart Chain (as a pegged token). The tokens available for lending are very extensive, and the list is significantly larger than other similar protocols.

Borrowing done on top of the protocol is often over-collateralized, meaning that the amount borrowed is smaller than the property offered. This ensures capital protection for the lender. Depending on governance parameters, mortgage rates may vary.

CREAM lenders are encouraged to offer their assets to compound at varying interest rates based on values determined by risk assessment. They can withdraw their money at any time. There is no time limit for the borrower to repay the loan.

Exploiting liquidity finance

CREAM Finance allows users to participate in liquidity mining. Users earn a percentage of the fees obtained through the offering of those assets in the Cream Finance Swap decentralized exchange. The protocol ran a liquidity mining program before, which has since ended.

Liquidity mining ensures that idle funds are converted into productive assets. Providing liquidity incentivizes productive farmers to make sufficient liquidity available to users and enables asset swaps on the DEX. Operations are designed similarly to other platforms, so impermanent losses may occur when using them. Furthermore, funds can be withdrawn at any time.

Financial Swaps

The original Uniswap-like common asset swap is called the CREAM Financial Swap. It is described as a fork of Balancer with UI/UX Uniswap. An Automated Market Maker without an Order Book (AMM) works similar to Bancor, Uniswap, and Balancer.

Like all AMMs, CREAM Finance uses a combination of liquidity pools and algorithms to determine the price/exchange ratio. The service offers industry-leading low transaction fees of 0.25%, of which 0.20% goes to liquidity providers and the rest is deposited into the platform’s coffers.

CREAM financial administration

Although it hasn’t launched yet, governance of CREAM Finance will be provided by a decentralized autonomous organization (DAO) at some point in the future. CREAM token holders will have the right and opportunity to vote on important issues.

The governance mechanism can be borrowed from a multitude of projects. Its charter has been officially described as “the CREAM DAO shall exist to control, govern, administer, and direct all decisions relating to CREAM on behalf of CREAM token holders”.

CREAM holders will be able to vote on the addition or removal of liquidity pools, assets, parameter modifications, and more. Governance will eventually pass to the community, as is the norm with DeFi projects.

The future of Cream Coin

CREAM Finance, which helps provide liquidity for key DeFi assets with automated market creation (AMM), gives users the opportunity to buy and get loans in backed assets and collect liquidity mining rewards in the CREAM coin system by displaying these assets as collateral. In turn, it charges users for clearing, borrowing, and loan issuance processes. In this respect, it can be said that it is a very open project.

CREAM Finance aims to list and support tokens important for the DeFi industry. The largest stablecoins among them (USDT, USDC, BUSD, yCRV, etc.) governance tokens (COMP, BAL, YFI, LEND, CRV, CREAM, etc.) and an ERC token on the Ethereum network, which can run the Ethereum Virtual Machine through smart contracts. Users increase productivity by creating decentralized applications (DAPPs) for the community, connecting financial services, and more.

CREAM Coin can be staked for up to 4 years, accumulating rewards. However, it should be noted that no system administrator can unlock the lock during this process, and therefore the reward can only be obtained at the end of the staking period.

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