Crypto.com Joins DeFi Madness!
Famous cryptocurrency exchange Crypto.com has launched a new service to take advantage of the DeFi craze.Crypto.com has launched a DeFi Swap service that allows users to exchange between various decentralized finance tokens. The firm promises its customers up to 20 times returns. However, the company does not hesitate to state that there are also many risks in these transactions.
Start here: https://t.co/Qk3XKx1hJw
— Crypto.com (@cryptocom) September 11, 2020
DeFi Tokens Can Be Traded
Crypto.com, a Hong Kong-based cryptocurrency company, has launched a new service called DeFi Swap. According to Whitepaper, the infrastructure allows decentralized finance (DeFi) users to exchange their tokens between various DeFi liquidity pools.
Launched on the Ethereum mainnet, the service allows users to exchange and process DeFi tokens, as well as provide liquidity and gain “Triple Yield”.
The following expressions are used in Whitepaper:
“DeFi Swap has been designed to be the best place to trade and collect DeFi coins at the best available rate, leveraging proven and audited protocols while offering an outstanding incentive program supported by the CRO.”
During the DeFi Swap launch, Wrapped Ether (WETH), Tether (USDT), USD Coin (USDC), Dai (DAI), Chainlink (LINK), Compound (COMP) and Crypto.com Coin (CRO) will be supported.
While users can trade between any two supported tokens by paying a 0.3% swap fee, Crypto.com Coin (CRO) holders – as liquidity providers (LPs) – will be encouraged to contribute to their liquidity pools:
“Initially, all clearing fees (0.3% per swap) will be distributed to liquidity providers. Crypto.com reserves the option to subsequently reroute a maximum of 0.05% per exchange to fund the protocol’s ongoing R&D. ”
The firm added, “Under the current installation, users can earn up to 20 times the return of no less than 50,000,000 CRO for 4 years.”
DeFi Carries Risk
Nevertheless, the company stressed that Crypto.com’s protocols are a set of smart contracts voluntarily made available ‘as is’ and ‘as available’ by Defi Labs (‘Crypto.com’), and it does itself to all risks and contractual obligations arising from interactions with the protocol. stated that he does not take responsibility for any claims, damages or other things arising from or in connection with the protocol, under the tort or any other liability theory.
The firm also emphasizes the risk of DeFi assets. The firm listed things that could be:
- Partial or complete loss of virtual assets
- Liquidity collapse with respect to virtual assets
- Possibility of market abuse by participants, including for example market manipulation