Polygon to Launch C.R.E.A.M. Finance: Bringing Capital Efficiency to Long-tail Assets

Place/Date: - June 29th, 2021 at 8:21 pm UTC · 3 min read
Source: Polygon

Polygon to Launch C.R.E.A.M. Finance: Bringing Capital Efficiency to Long-tail Assets
Photo: Polygon

Polygon is proud to announce the launch of C.R.E.A.M. Finance, a high-efficiency money market focusing on long-tail assets across multiple blockchains. The partnership will enable access to  a larger variety of markets, rapid transactions, and lower fees. The launch will begin with access to the following markets: DAI, LINK, MATIC, SUSHI, USDC, USDT, WBTC, WETH. There will be around 45 different tokens available for lending/borrowing, with more added continuously. A key feature of the C.R.E.A.M. Polygon market is the use of Chainlink oracles to ensure accuracy and security for its users. Collateral factors range from 45% to 85%.  C.R.E.A.M. Polygon  willprovide incentivese to the markets with liquidity mining (details coming soon).

There are several key features that make the C.R.E.A.M. Polygon platform stand out. The lending service will focus on long-tail assets, with over 40 tokens supported by Chainlink oracles.  Other BTC-pegged tokens will use BTC price instead, and a subset of tokens will use prices directly from their contracts or will utilize C.R.E.A.M.’s own price oracle to determine an accurate price.  Key metrics for lending/borrowing APY, along with collateral/reserve factors can be found on the C.R.E.A.M. documentation site.

The partnership will also offer a more traditional lending platform called Iron Bank. This serves both individuals, institutions, and also allows for protocol to protocol lending. The Iron Bank, AKA CREAM v2, focuses on a smaller grouping of assets that have additional scrutiny and a higher creditworthiness, with the platform proactively managing risk through smart contract security reviews. For whitelisted protocols, borrowing can occur with little or no collateral on the Iron Bank directly.

For access to undercollateralized loans that are borrowed and repaid within one translation block, the C.R.E.A.M. Polygon partnership offers flash loans. This service provides much needed support for cases such as collateral swapping, interest rate swapping, arbitrage, or democratized liquidations.

The crToken is EIP-20 compliant representation of balances supplied to the protocol, and is the backbone of the C.R.E.A.M. / Polygon service. crToken is the primary way to interact with the protocol: Minting, redeeming, borrowing, paybacks, liquidating, or transferring are all completed using the crToken contract.

About Polygon

Polygon is a leading platform, providing a simple solution for Ethereum scaling and infrastructure. Its clients choose Polygon because of the modular, versatile Polygon SDK.  This framework is designed to enable building and linking both Secured Chains and Standalone Chains, which allows the choice to implement a native security structure, or to use the platform’s Security as a Service. Polygon continues to grow its ecosystem, with over 450+ Dapps, 350M+ txns, and 13.5 million+ distinct users.

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About C.R.E.A.M.

C.R.E.A.M. Finance is a protocol that provides decentralized lending to individual users, organizations, and even other protocols. Permissionless, open source, and compatible with any blockchain, the service is a pioneer in providing financial services using highly efficient and secure methods. C.R.E.A.M. Finance specializes in long-tail assets, empowering its users to lend and borrow any of the many supported assets in the markets, along with using the capital as collateral to borrow other assets supported by the platform.

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