Decentralized finance project Cream has been the subject of much attention in the past few weeks. Its native token, fittingly named CREAM, is up 40 percent in the past 24 hours alone after.

Cream is a money market project forked from Compound. The project garnered traction during DeFi summer after it released a yield farming system for its native token CREAM. It quickly became subject to some backlash, though, as there were investors that were criticizing the project’s addition of questionable cryptocurrencies.

The project has since been absorbed into the Yearn.finance (YFI) ecosystem, which has given it renewed buying pressure and renewed development activity.

Cream Introduces the Iron Bank

Cream has been in somewhat of a lull since the summer. The protocol’s total locked value dropped after CREAM incentives ended to some extent and as the fears spread about the project’s involvement of questionable cryptocurrencies.

Read Also:   Bitcoin Cash, Tron, Algorand Price Analysis: 11 January

Yet this is changing as Cream developers have introduced a new product called The Iron Bank.

According to a blog post announcing this new update, The Iron Bank is a segment of the Cream protocol that will basically lend capital to protocols on a whitelist basis. What makes this different than normal lending protocols is that loans can be taken without directly putting up capital, allowing for more capital efficiency.

“As protocols replace enterprises, the new face of corporate credit will be protocol-to-protocol lending, which could one day far oustrip DeFi peer-to-peer lending just as corporate lending markets far surpass peer-to-peer markets. This is why we launched the Iron Bank: we believe protocol-to-protocol lending will one day be a multi-trillion dollar market.”

Cream is currently working with Yearn.finance’s Vault system to use The Iron Bank to boost yields and the overall user experience.

Read Also:   MicroStrategy CEO: Bitcoin the Solution to $250 Trillion Problem

The Iron Bank will allow Yearn to “develop leveraged yield-farming strategies and cross-asset strategies.”

According to Andre Cronje, the founder of Yearn.finance, and the Cream team, this system will allow for up to “90x leverage on stablecoins or 80x leverage on ETH to farm SUSHI, CRV, ALPHA.”

Cream will also be working with Alpha Homora, a DeFi lending tool by Alpha Finance Lab that allows users to obtain leverage on their Uniswap and SushiSwap liquidity provider positions.

DeFi analysts say that this development is extremely positive for the cryptocurrency, as it will drive more value to CREAM holders and to the overall Cream and Yearn ecosystem.

Read Also:   Cryptonites and CryptoSlate announce partnership to bring you a weekly dose of crypto video entertainment

“DeFi Ted” commented on the news:

“Iron Bank will position itself outside of $CREAM V1 which is the retail focused, long tailed assets that the platform is known for. This is institutional grade credit. Exactly that credit. Which comes at a premium.”

Per CryptoSlate market data, CREAM is up 40 percent in the past day due to this news as investors have embraced the news.

Posted In: Yearn.finance, DeFi

Like what you see? Subscribe for daily updates.




Download MAXBIT Android App, Your best source of all crypto news!
Google Play

Source link


DeFi project CREAM surges 40% as Yearn.finance (YFI) announces integration

by James W. Salisbury
Choose A Format
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format