Since it emerged in mid-2020, the DeFi sector has seen a lot of activity, and an impressive amount of development. Originally starting on Ethereum, DeFi has not only spread out to every other chain capable of using smart contracts, but many of its projects are now also blockchain agnostic, meaning that they can run on multiple chains at once.
This is a great way for specific projects to continue to grow and include more people into their community. Another sign of maturing comes from the fact that DeFi protocols do not offer a single type of service anymore. Of course, there are still those that do, focusing only on staking, or lending/borrowing, and alike, but there are now many of them that offer several different types of activities, which makes them that much more attractive to users.
Cream Finance is a good example for all of these things, as it runs on multiple chains, including Ethereum, Polygon, BSC, and Fantom blockchains, and it offers a wide variety of activities for its users. Plus, it also solves some of the problems of decentralized finance, and the broader crypto industry, as well.
How Does Cream Finance (CREAM) Work?
Cream Finance is a relatively straightforward as DeFi projects go, even though it is complex and offers a variety of benefits. It aims to serve everyone, from regular, individual users, to crypto companies, and even other DeFi protocols. It serves individuals by granting them several ways to earn money, such as staking, yield farming, and lending & borrowing.
It helps businesses and other protocols by providing liquidity and listing token pairs. In doing all of this, it helps with pushing the DeFi sector, and indeed, the entire crypto industry, forward. And, since it operates on multiple blockchains, users can even select which chain they wish to access it on, which can be very beneficial when it comes to transaction cost and other similar aspects.
What Problems Does Cream Finance (CREAM) Solve?
Cream Finance is a project that contributes to DeFi sector’s adoption and ease of use in several ways, such as:
Accessing financial services
Cream Finance is a DeFi protocol for individuals, institutions, as well as other protocols, allowing them to access various financial services. It is a part of yearn.finance ecosystem, and it is a permissionless, open-source, and blockchain agnostic protocol whose goal is to allow users to make the most out of the DeFi sector and the possibilities that it offers. At this point, those possibilities include quite a few things, as we will discuss later on.
Providing liquidity
As mentioned, Cream Finance is a protocol that serves other protocols, and not just individual users and companies. It believes that the best way to help other protocols is by acting as an Automated Market Maker, or AMM, and providing liquidity for important DeFi assets. And, since it operates on four blockchain, with the potential to reach even more of them in the future, this can be something that a great many protocols in the entire DeFi sector can benefit from.
Asset listing for DeFi
It is also important to mention that the platform aims to list and support tokens that are important to the DeFi sector, thus contributing to their growth, and allowing users an easy way to reach them from a single place. For example, stablecoins have been very important in crypto and DeFi alike, as they are not only listed against most DeFi protocols out there, but they are also a safe haven when the prices start dropping. It also lists many governance tokens of other protocols, which is, again, beneficial for users participating in these projects’ decision-making. Finally, it even lists some leading coins, such as ETH, renBTC, LINK, and more.
Benefits of Cream Finance (CREAM)
While undoubtedly useful to DeFi, Cream Finance also offers something for individual users to benefit from directly. For example, it lets you:
Earn yield
One of the best ways for users to benefit from DeFi protocols is to buy their native tokens and lock them up. However, Cream Finance lets you skip that step, and it allows you to deposit assets in the form of Ether or wBTC. In doing so, you can earn yield, which is similar to traditional savings accounts, only significantly more profitable.
Lending/borrowing & Staking
You can, of course, still purchase CREAM tokens and stake them, in order to receive rewards and contribute to the project in a more direct way. Or, you can turn to its lending pools and deposit your cryptocurrencies there, allowing people to borrow tokens through smart contracts, and return them with interest, which will be your profit. The best thing about this is that lending is available to everyone everywhere, so you can contribute to helping people who live in areas that are not covered by the banks, which is something that was impossible until recently.
Governance
Finally, you can also engage in the governance of Cream Finance, and help make important decisions that will decide the future development of the project. Alternatively, if you have an idea that can help improve Cream Finance in any way, you can submit it and let others vote on whether or not it should be implemented in the next update.
Bottom Line
Cream Finance is one of DeFi protocols that might not be extremely innovative, but they offer certain stability — not in terms of prices, but it offers well-established DeFi services in a single place. As such, it is reliable, profitable, and it contributes to DeFi and crypto adoption. Plus, it helps users earn and prosper, which can be particularly useful to those in areas not covered by traditional finance.
