About Cream Coin
Cream price today is $122.28 with a 24-hour trading volume of $6,984,533. CREAM price is up 15.2% in the last 24 hours. It has a circulating supply of 640 Thousand CREAM coins and a max supply of 9 Million. Sushiswap is the current most active market trading it.
What is CREAM?
As of February 2021, users can lend and borrow over 40 cryptocurrencies on CREAM.
Lenders can earn interest by providing liquidity to the protocol, while borrowers can borrow by collateralizing their cryptoassets to take out loans from the liquidity pools.
The protocol has a native token, CREAM, which also acts as a governance token. Governance allows the community to decide on the protocol’s direction, such as deciding on new cryptoassets to be listed on CREAM, the reserve ratio, the collateral factor, and many more.
Fun fact: CREAM stands for Crypto Rules Everything Around Me.
A brief history of CREAM
CREAM was founded in July 2020 and led by Jeffrey Huang, who is also the founder of Mithril.
CREAM has two core products:
- Decentralized lending protocol - known as CREAM and forked from Compound
- Decentralized exchange protocol - known as CREAM Swap and forked from Balancer
Towards the end of November 2020, Yearn.Finance (YFI) had a Merger & Acquisition spree (they had five mergers in total in one week), and CREAM was one of them. YFI’s Merger & Acquisition has formed a YFI ecosystem.
On 14 January 2021, the CREAM team announced that they plan to launch a zero-collateralized lending service called Iron Bank. With Iron Bank, borrowers will no longer need to deposit any collateral when borrowing on CREAM. You can read more about it here.
How does CREAM work?
To understand how CREAM works, we will segment it into three key products:
- The lending protocol
- The decentralized exchange
- CREAM token
CREAM, the lending protocol
On CREAM, you can lend and borrow across 40 supported cryptocurrencies such as Sushi (SUSHI), Uniswap (UNI), and wNXM (WNXM). As a lender, you can earn interest by providing liquidity in the protocol.
Upon supplying the liquidity, you will receive crTokens that represent the respective underlying asset, and these tokens will take into account the interest accrued over time.
As a borrower, you will have to provide collateral before you can take out a loan and the amount you can take out is dependent on the collateral factor.
To know more about how you can lend or borrow assets on CREAM, kindly refer to their blog post.
CREAM Swap, the decentralized exchange
Cream Swap is a decentralized exchange that utilizes an Automated Market Maker (AMM) model, where users can quickly swap from one token to another.
Users can also provide liquidity to the pools on CREAM Swap, though it is unclear how much liquidity providers will earn from the 0.25% exchange fee.
CREAM, the token
CREAM is the governance token of the CREAM protocol. Token holders can vote on Snapshot and influence the protocol’s direction, such as the collateral ratio of the supported asset or new assets to be listed.
One thing to note is there are no rewards for token holders when they vote.
If you are keen to table a proposal, you can refer to a step-by-step guide by the team here.
Can I long or short CREAM?
Yes, you can! However, you can only long or short CREAM via perpetual contracts at FTX at the moment.
Note that derivative contracts and tokens are high-risk products. You might want to understand what you are doing before participating in them.
For more information on CREAM, do refer to this interview with Leo Cheng, co-founder of CREAM.