Locked liquidity and token swapping have a whole new meaning now.
A little bit about DeFi Swap to start
Crypto.com DeFi Swap is a fork of Uniswap V2 with Triple Yield incentives provided for liquidity providers, powered by CRO. Uniswap V2 was audited by dapp.org and CRYPTO.COM DeFi Swap went live on the Ethereum Mainnet on 11 September 2020.
Prior to launching DeFi Swap, the smart contracts and DeFi operating model were audited by Crypto.com’s security team as well as blockchain researchers at SlowMist (audits reports: https://crypto.com/defi/swap-protocol-audit.pdf and https://crypto.com/defi/swap-staking-audit.pdf). Furthermore, all DeFi Swap protocol and support components are included in the Crypto.com HackerOne bug bounty program (https://hackerone.com/crypto?type=team).
Since the launch, 36M of liquidity has been locked and it supports up to 17 tokens so far.
Differences with Uniswap
As mentioned, Crypto.com DeFi Swap is the fork of Uniswap V2, liquidity providers can earn the swap fee paid by the users who swapped tokens through DeFi Swap. The key difference between the two is the choice of tokens available for swapping, additional geographic restrictions, and notably a yield farming incentive based on CRO, the token of the Crypto.com.
Users can swap between any two supported tokens including some of the most popular Cefi and Defi tokens:
? Ether (ETH)
? Wrapped) Ether (WETH)**;
? Tether (USDT);
? USD Coin (USDC);
? Dai (DAI);
? Chainlink (LINK);
? Compound (COMP);
? Crypto.com Coin (CRO);
? Yearn Finance (YFI);
? Wrapped Bitcoin (WBTC);
? Uniswap (UNI);
? Harvest Finance (FARM);
? Swerve (SWRV);
? UMA (UMA);
? REN (REN)
? AAVE
? NEST Protocol (NEST)
Swerve (SWRV) How does DeFi Swap Works
DeFi Swap follows a constant product formula, where the product of the quantities of two tokens remain the same before and after a swap is performed. The price slippage depends on the ratio and quantity of tokens in the pool (reference article).
5 main functions exist in the protocol: Swap — Pool — Boost — APY — Analytics. To discover more about each function, see DeFi Swap Whitepaper.
When using any blockchain and cryptocurrency projects, risks are to be expected and one when investing any amount of money should properly research the processes and functions of the specific project of interests. DeFi Swap is definitely bringing a lot of trustworthy names for them to be trusted by a wider audience.
Boost Yield By Staking CRO
As a liquidity provider, apart from the swap-fee sharing, you can easily boost and yield CRO by staking CRO. For your convenience, you can go to the APY calculator to forecast your boosted CRO DeFi Yield.
On a daily basis, your CRO DeFi Yield allocation will be calculated based on your share of liquidity provided as a percentage of total liquidity across pools adjusted by a multiplier determined by CRO staking level and term.
The daily CRO yield pool is equal to a % of CRO amount staked per day.
Your accrued CRO DeFi Yield is updated at UTC 08:00 daily and is ready to harvest with vesting of T+30 days or T+ 90 days -
? Staked 100k CRO or above: T+30 days
? Staked less than 100k CRO: T+90 days
You will be able to claim your yield from the DeFi Swap “Boost” section once the vesting period is over for your first daily accrued CRO yield.
The table below summarizes the CRO DeFi Yield multiplier by CRO staking level and term, which will be applied to the liquidity provided as a percentage of total liquidity across pools to calculate a user’s share of the daily yield pool. The table is valid at protocol launch and is subject to future update. Please refer to the DeFi Swap web app for the latest version.
Under the current set-up, users can get up to 20x multiplier, if they stake 50,000,000 CRO for 4 years, for more information, please refer to Crypto.com support document.
Conclusion
Crypto.com DeFi Swap works on a similar mechanism with Uniswap V2 but offers extra yield reward incentives to users who staked Crypto.com Coin (CRO), their native token. If you want a more decent yield, you can buy and stake more CRO while CRO price has dropped quite significantly in the past one month and thus your investment cost will be reduced significantly at the meanwhile, check out Crypto.com DeFi Swap and farm defi coins.
If you don’t want to stake CRO for long period term but you would still want to yield farming with Defi coins, you can try Crypto.com Exchange Supercharger - a simple, flexible and secure liquidity mining platform that allows users to deposit CRO (with the option to withdraw at any time) in order to mine the most popular DeFi tokens on the Crypto.com Exchange and Crypto.com App.
