SCREAM is a DeFi application on the popular Fantom blockchain. It is a lending protocol that was inspired by Aave and Compound and it is competing with Geist Finance, which is also a lending protocol on Fantom.
SCREAM works like most other similar protocols. Users can deposit supported assets to either earn compounded interest from loans or to use them as collateral to borrow other supported tokens. This can be used for things like leverage trading, where you use borrowed funds to buy more cryptocurrencies you are bullish on, or for shorting an asset, where you borrow a token, sell it and then buy it back at a lower price to pay your loan back.
You can pay your loans back whenever you want and you can pay it back all at once or in smaller payments, borrowing is very flexible. However, it is not without risk because should the value of your collateral fall, or the value of your borrowed asset increase to a point where your collateral is at risk of no longer backing your loan fully, then your collateral will be sold automatically to pay your loan back and you could lose an asset you didn't want to sell.
The interest rates for lending and borrowing are all set automatically based on how many tokens are supplied vs how many are being borrowed. Most of the collected interest from loans is going to the lenders, but a part of the interest is also going to the treasury and is used for buy backs of SCREAM tokens that are distributed to SCREAM token stakers.
SCREAM also supports Flash Loans like Aave does it. With a Flash Loan you can take large loans without collateral, but you have to pay it back within the same transaction. This seems completely useless at first, but this is great for when you want to move debt from one lending protocol to another one with better interest rates or for arbitrage trading on two DEXes. However, this is nothing for normal users because performing a Flash Loan requires a lot of programming skill.
Like mentioned there is another lending protocol on Fantom called Geist Finance. Both of them are amongst the most used dApps on their blockchain but Geist is handling more transactions per day. They both work rather similar, but there are some differences. Geist Finance is distributing a greater share of the interest to stakers of GEIST, but it has no treasury and no governance like SCREAM has it. Geist Finance has more users right now, but after all GEIST tokens are distributed in 5 years, the lenders could want to move their funds to SCREAM since they would earn a greater share of the interest there.
The SCREAM Token
SCREAM has a native governance token with the same name. Other than giving the holders the right to vote on possible changes once the DAO is implemented, it also lets them earn a share of the collected interest if they stake it.
How much of the interest is going to the SCREAM stakers is different for each asset and can be adjusted by the governance, but it’s usually about 10%. If you stake SCREAM, you get xSCREAM tokens in exchange and you can burn them to redeem your share of SCREAM and your compounded interest at any moment. Right now, you can get an APY of about 34% by staking SCREAM.
There is a max supply of 2 million SCREAM tokens. 5.36% were sold to investors and were used for the initial liquidity, 34.64% were put in the treasury that is controlled by the token holders, 10% were set aside for the team members that are being vested for 48 months and the remaining 50% is used for additional rewards for lenders and also for liquidity providers for the SCREAM / FTM pair on SpookySwap.
The value of the token depends on how many people provide their funds to protocol and how many people use the platform to take loans, because if more people use it the SCREAM stakers will earn more rewards. The SCREAM token is distributed well and has a good utility. Lending protocols are very useful and is very popular which gives SCREAM a lot of potential, but currently Geist Finance has more users and more liquidity. SCREAM is letting the lenders earn a bigger share of the interest, which could make the platform more attractive for lenders especially after all GEIST tokens are distributed, but this will take a long time.
The token is not supported by most centralized exchanges right now, but you can buy it on the SpookySwap DEX if you have some FTM coins. You can use a MetaMask Wallet to store your tokens and interact with the SCREAM platform, if you connect it to the Fantom blockchain.
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