Crypto.com has just deployed DeFi Swap on the Ethereum mainnet, its own automated market maker pool (AMM). Powered by the CRO token, DeFi Swap will offer liquidity providers (LPs) significant rewards to encourage them to contribute.
Crypto.com launches in turn in DeFi
DeFi Swap is a decentralized protocol deployed on the Ethereum blockchain . While Crypto.com is effectively centralized, its role is to provide the technology and assist in the development of the product. Thus, DeFi Swap is open source and Crypto.com even invites developers to contribute to its evolution.
When DeFi Swap launches , users can trade between some of DeFi’s most popular tokens:
Note that to use this new platform, connection to the MetaMask wallet is required. In addition, ETH must first be transformed into WETH in order to carry out an exchange.
The fees for a swap between two tokens are 0.3%. Like other such platforms, DeFi Swap follows a constant product formula, where the product of the amounts of two tokens remains the same before and after an exchange is made.
With an interface very similar to that of Uniswap , Crypto.com’s MA has many other surprises in store. DeFi Swap is also a fork of Uniswap, to which features have been added around the CRO token.
The benefits of becoming a liquidity provider
Crypto.com guarantees a reward of 14 million CROs to liquidity providers, or 1 million CROs per day . By using DeFi Swap, liquidity providers will have access to many benefits:
Sharing of swap fees: liquidity providers will be rewarded by sharing 0.3% of the transaction volume of their respective liquidity pools;
CRO DeFi Yield: for LPs who also participate in the CRO pool, they can increase their interest up to a factor of 20 depending on their contribution;
LP Yield Bonus: for LPs from other pools, they will receive tokens from the underlying DeFi projects.
The rates of return promised by DeFi Swap are, at the time of this writing, colossal. For example, if a user provides $ 1,000 in liquidity and locks in 10,000 CROs for 1 year, the interest rate is 131.40% .
Thus, by locking in its CRO tokens for a period of 4 years (the maximum), the interest rate climbs to 262.79% .
However, this annual return is only a prediction , and is estimated based on the total liquidity provided in the CRO pool. The estimates are therefore subject to change depending on the activity of the pool, and the rate can vary by several hundred% in a few minutes.
With DeFi Swap, Crypto.com wins battle against Binance
With this initiative, Crypto.com is determined to continue the trade war it is waging against the juggernaut Binance . Indeed, the deployment of DeFi Swap comes only a week after that of Liquid Swap , Binance’s MA.
However, Crypto.com seems to have won this battle. Its pool of market makers is currently much more interesting for its users than that offered by Binance, which only supports USDT, USDC and Dai.
Furthermore, DeFi Swap being completely open source and taken from Uniswap, Crypto.com offers a completely transparent solution. It is also possible to consult all the platform’s data on DeFi Swap Analytics .
👉 For more information on DeFi Swap, see the platform’s FAQ