CREAM Finance Review 2021

CREAM Finance stands out from the list of numerous protocols by its very name. CREAM Finance refers to ‘Crypto Rules Everything Around Me’. This is a relatively new DeFi protocol in the market and was launched in 2020. Carved out to be a unique protocol and platform, CREAM Finance quickly gained popularity and started acquiring a high market share.

With one of the most diverse and long lists of supported crypto assets in the industry, CREAM Finance became one of the leading protocols in the domain of crypto finance. Since then, CREAM has gathered a substantial user base and large-sized market liquidity pools. Operating almost unrivaled, CREAM Finance has the potential to shift the paradigm of lending and borrowing on the Ethereum Blockchain. 

Quick Overview of Cream Finance

  • CREAM Finance is a lending protocol for decentralized finances that operates on the Ethereum Blockchain.
  • CREAM Finance has an intuitive and simple interface that appeals to both beginners and advanced users.
  • Uncommon financial decentralized systems such as Iron Bank and Polygon net are also available.
  • The platform is making a move towards becoming a DAO (Decentralized Autonomous Organization) in every aspect.
  • CREAM Finance’s platform can be used as an AMM (Automated Market Maker).
  • Users can lend assets to earn interests or take out crypto-backed loans through the CREAM Finance Network. 
  • CREAM Finance rewards is one of the strategies used to incentivize users to trade.

What Is Cream Finance?

CREAM Finance is a lending platform that is based on its decentralized lending protocol. CREAM Finance offers an easy-to-use interface for users from every background and provides numerous advanced functionalities to make money on the platform.

CREAM Finance follows the approach of curve finance. The network keeps a small amount of the transaction as a fee and undercuts most of its competition. Individuals can do their own research and go through an in-depth curve finance article to gain profits by shorting an asset. Users can make money on the platform in multiple ways.

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As an Autonomous Market Maker, the CREAM Finance app enables users to swap the crypto assets based on their market values and sell at different rates, thereby making money. CREAM Finance’s DAO aspirations seem to be steering the platform towards the domain of self-governance. The self-governance will be done with the help of governance tokens.

History of Cream Finance

CREAM Finance made news on its announcement in June 2020. Incorporating the best practices of other protocols and platforms and eliminating their limitations, CREAM Finance was launched later that year with a unique set of features and functionalities. Being positioned in an expanding market, it grew dramatically within a short period of time. It can be considered as one of the market leaders in the world of decentralized finance.

Crediting its growing liquidity pools, CREAM Finance provided benefits that were superior to some of its industry rivals and soon rose to the rank of protocols that are capable of revolutionizing the decentralized financial system for generations. 

Over the last year, CREAM Finance has branched out in various directions and has done so with dexterity. The platform proactively learned from the strong aspects of various other decentralized protocols and improved on their limitations, thus, becoming the choice for a large demographic.

The launch of their CRV token was also a significant leap for the platform and the team behind it. CREAM Finance is now considered a multi-utility platform that anyone would benefit from. 

How Does Cream Finance Work?

CREAM Finance is a subset or distinct part of the Yearn ecosystem. Launched on the Ethereum blockchain, CREAM Finance now offers various crypto networks to trade in. CREAM Finance acts as a medium for users to trade their cream tokens or crypto assets.

The lender and borrower are subject to different interest rates. A part of this difference goes to the network or the CREAM Finance team (it is unclear). The CREAM Finance team’s creation has become a niche when it comes to compound finance.

Liquidity mining is also a feature that the protocol provides for its users. To borrow assets, borrowers have to draw from the pools, and lenders who are long on assets can become liquidity providers and earn interest on their assets. Underserved assets might be subject to liquidation, and users should be mindful of it. Users of the protocol also give liquidity mining incentives to keep the market flow positive.

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Founder of Cream Finance

The man behind the platform is Jeffery Huang. With a track record of creating pioneering crypto-based products and services, Jeffery was also the creator of a social media platform based on the Ethereum blockchain (Mithril) and a social media platform in Taiwan that reached a user strength of 42 Million.

Jeffery has also authored a significant number of blogs and articles on their Medium page. The entire team, led by Huang, has been very interactive and prompt regarding all updates of the platform and its services or functionality. Get more knowledge from here.

Cream Finance Review: Pros and Cons

Pros Cons
Offers a wide range of lending services. Lacks proper distribution of governance tokens.
Large-sized liquidity pools are available for the users to borrow. The borrowing power is limited as only about 60-70% of the collateral’s amount can be borrowed.
Enables the users to make money by swapping their assets. The development has been erratic, which makes it unpredictable.
Built on Compound finance, the exchange platform also provides a multi-signature wallet.

The CREAM Finance Login Process

To log in to the platform, the users must connect to their meta wallets. The two options available for the platform (at the time of writing this article) are MetaMask and WalletConnect. After logging into the account, users are greeted by an easy-to-use interface.

Individuals can view their borrowed balance, supply balance, and other basic details. Its use of features like swap and swap pools works like a charm. This makes it very convenient for users.

Users can follow the team on various social media channels to stay in touch with the brand and all upcoming updates.

The CREAM Governance Token

The CREAM token is essentially an ERC-20 token and is in the process of transitioning to a full-fledged DAO (decentralized autonomous organization). After the transition, CREAM will be governed by its users. The website also shows a live list of currently available governance tokens, both from the supply and borrow markets.

CREAM Finance provides liquidity mining incentives for this token and gives rewards to the corresponding CREAM token holders. As users have complete transparency about the protocol, it is expected to become a democratically monitored DeFi (decentralized finance) platform. 

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CREAM Lending and Borrowing Services

Lending and borrowing are among the most common services on any digital asset exchange platform and tend to be most frequently used by both new and seasoned traders. Borrowing and lending are easy processes on the CREAM Finance app. It can be considered an Ethereum virtual machine with regard to its architecture on the ETH blockchain. It enables the users to earn interest on the assets that they lend out to the borrowers.

Users can visit either the supply market or borrow market and take a glance at the live rates for the vast amount of supported assets. Borrowers must remember that they will be liquidated if the exchange value of their collateral tends to fall below their relative borrowed amount.

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CREAM Finance Liquidity Mining

The feature of liquidity mining is considered as a secondary and slightly more complicated way of earning profits through the platform. The users can select from a number of different pools and get stakes through their respective tokens.

Trading these tokens across the platform also brings in a small amount of transactional fee back to the originator, giving users an incentive to create more entries. The underlying approach of this process is to make sure that there is sufficient liquidity for traders who are swapping among their respective assets on DEX. 

Cream Finance Swap

Swap is an extension that was added to the exchange platform that was shortly after its launch. The extension turns the platform into an Automated Market Maker. CREAM Finance Swap enables users to swap their assets at rates based on the current/ongoing size of pools of the said assets and not from a centralized rate card.

This implies that the value of one’s held token will change if other users lend/buy or borrow from the pools. CREAM Finance Swap can be considered an investment whose value will change if the corresponding asset’s pool size changes.

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Cream Finance DAO (Governance)

As discussed earlier, CREAM Finance is in the process of transitioning into a DAO. CREAM Finance will be governed by the users of the platform after its shift. Users who hold a CREAM token can take part in the platform’s governance and thus, keep it monitored and safe.

As the mining scale of these tokens increases and new users are added to the protocol, this branch of compound finance can be governed better. Holding governance (through tokens) also enables users to vote in determining various attributes and the future of the protocol. 

Cream Finance Cryptocurrency Wallets

Cream Finance is a part of the Ethereum blockchain and works primarily with some ETH wallets. Both Web 2.0 or Web 3.0 wallets can be used with CREAM, although Web 3.0 wallets are preferred more due to obvious reasons. 

Depending on the location, individuals can use the corresponding wallets that are functional in their area. It is recommended that users conduct their own research while narrowing down to a suitable wallet for long-term holding.

The ERC-20 token, the base of CREAM, can be stored in any Ethereum-based wallet.

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Why Does Cream Finance Rule DeFi?

The vast competition also scrutinizes a field without centralized control, and varying user bases often create market voids in the world of DeFi. CREAM Finance is often considered to rule the space of DeFi for varied reasons. Some of the lowest interest rates on transactions, availability of loans without a credit check or KYC, large liquidity pools, and a friendly user interface are only some of the reasons behind its tremendous success.

Other unique features that CREAM brings to the table will also give it the potential to stand undisputed across the domain of DeFi if the platform plays its cards well. Lastly, the distribution of tokens is yet to reveal how their value changes, and if it stands the test of time. 

Cream Finance Security

The security of CREAM Finance depends on the extent of its decentralization. The growing numbers seem to promise a secure and safekeeping of the ledger and information. The consistent updating of the protocol and the addition of benefits can attract more users. This, in turn, will increase decentralization.

Further, once CREAM Finance becomes a complete DAO, its security would be governed by the users themselves. Buying and holding CREAM Token is a way to ensure the safety of the protocol and monitor the finer details to keep up with its impressive operation. 

Cream Finance Customer Support

The team has maintained a healthy digital presence with the goal to stay engaged with their users and audience. The customer support of CREAM Finance can be reached via different mediums. The team can be contacted via email, Telegram, Twitter, and other channels. The team also maintains a Medium account to keep users up-to-date about the changes made to the platform. 

Cream Finance Review: Our Verdict

CREAM Finance is the leading bitcoin lending platform. It appears to be a safe and reliable platform for lending or borrowing digital assets and cryptocurrencies. The income from interest rates and swapping between assets is a good option for individuals who are long on cryptocurrency assets and would like to invest their underserved assets in a marketplace that can yield good results and other interests on their assets.

Any CREAM Finance review would suffice to make this platform seem quite appealing when considering the CREAM Finance alternatives.

FAQs

Is CREAM Finance a Good Investment?

Maintaining an impressive track record and depicting progressive growth since its inception, CREAM Finance offers reasonable rates for investors. The fluctuating rates might not interest every individual, but both beginners and seasoned traders can make money through this blockchain-based platform. 

Who Is Behind Cream Finance?

Jeffery Huang is the creator of CREAM Finance. With his diverse and impressive background in creating blockchain-based social media, he has started three highly successful and lucrative companies. His former creation, a Taiwanese social media platform, managed to win about 42 million users. 

How Does CREAM Finance Work?

CREAM Finance serves as a platform where users can lend or exchange cryptocurrencies and other digital assets. As CREAM is based on the ETH blockchain, it offers CREAM tokens that can be stored in any ETH wallet and thus, provides mining incentives for individuals. The protocol operates based on the fee that is charged for the transactions and other fees. 

What Is CREAM Finance DeFi?

CREAM Finance is a protocol for decentralized lending and borrowing of digital assets or cryptocurrencies. The users can also make money with the help of features/services like SWAP. Users can earn significantly more profits provided they know what they are doing and how the markets vary based on the pool sizes and the supply to demand ratio. 

How Do You Borrow From CREAM Finance?

To borrow from CREAM Finance, individuals need to connect their ETH Mainnet wallets to the platform, and then they can make use of the protocol. Once logged in and connected, users can go to the borrowing market and traverse through the list of available assets on the platform. 

Is CREAM Finance Safe?

The team behind CREAM Finance seems to be paying due attention to the importance of safety, and its move to become a DAO falls in line with it. The process of its governance becomes a matter for users who hold tokens from the CREAM pool. Being a part of the CREAM pool enables users to have a share in determining the safety and security standards of the protocol.

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