Crypto.com, a congress that deals primarily with the payment and exchange of cryptocurrency assets, announced its entry into decentralized finance using a platform called DeFi Swap. DeFi Swap is a Uniswap decentralized exchange fork, according to the company's transparency release released on Friday. The differences between this fork and Uniswap include a variety of tokens, more geographical restrictions, and in particular a CRO-based interest farming incentive scheme, the Crypto.com chain token.
Users who stick CRO tokens in the exchange, additional tokens that are rewarded daily through additional tokens. The higher the amount of steak (based on the coefficient that increases each year), the more interest the holders will receive. The minimum amount required to stick is 1000 CRO tokens, which at the time of writing was worth $ 160. Depending on whether the steak is more or less than CRO 100,000 ($ 16,000), the allocated bonuses are subject to a 30 or 90 day transfer period.
Although this system requires the transfer of assets, it is not unlike some of the current farming schemes. This system helps prevent some of the excesses in previous schemes in which assets were rapidly transferred from one coin to another in a matter of weeks. The Crypto.com calculator shows that the annual return from sticking 500,000 CRO ($ 80,000) for two years can be more than 1,000%. Rates are likely to be volatile and it remains to be seen whether they can stay the same during the period.
Crypto.com CEO Kris Marszalek told:
The company is building a complete ecosystem, and DeFi products are an important part of our roadmap.
"A Defy wallet is also being developed," he added.
So the company follows Binance, a centralized provider of Diffie products. But unlike Bainance, which has always sought to launch its own blockchain, Crypto.com's strategy seems to focus on the Atrium blockchain. DeFi Swap has similarities with SushiSwap, which tried to attract users through an incentive scheme.
But this exchange has certain features that make it less decentralized than competitors. The platform is IP restricted by jurisdictions such as the United States, the People's Republic of China and other countries that are often found on the sanctions list.
Marshall stated:
Regulation, privacy and security are the foundation of everything we do and determine our core product development decisions.
It should be noted, however, that DeFi Swap, as a Uniswap fork, can be accessed by requesting contracts with alternative methods that cannot be stopped by any entity.
Another limitation is the diversity of assets, apparently at the discretion of Crypto.com, while Uniswap is known for its very public token pool.
DeFi has grown to the point where centralized platforms are looking to integrate it into their product lines. But the concept of "CeDeFi", meaning "centralized decentralized finance", coined by Changense Zhao, CEO of Bainance, seems to be an oxymoron.
Thats interesting. It will avoid moving assests around specially with the high gas fees. Thanks for sharing.