Cream Finance to Offer Layer 2 Solutions for DeFi Lending
Cream finance is the current decentralized finance (DeFi) platform about to scale its lending and borrowing protocol to layer 2 (L2). Per a press release issued by the protocol today, Cream finance will launch on the Polygon blockchain for its users to access various markets, pay lesser gas fees, perform transactions faster and enjoy several other benefits.
Part of the release states that users can supply and borrow tokens on ten markets on the launch date. The ten markets are QUICK, CRV, SUSHI, LINK, WBTC, WETH, WMATIC, DAI, USDT, and USDC. Also, users will receive liquidity mining rewards, but the details about it will be released soon. Chainlink oracles will provide insurance for all assets, while collateral factors will be between 47% and 87%.
More Additions to Polygon’s DeFi Protocols
Despite merging with Yearn Finance last year November, Cream still maintains its service offerings. It offers DeFi lending to other protocols, individuals, and even institutions. The focus of its money market is to increase capital effectiveness in the digital currency space.
Cream finance is the newest addition to several DeFi networks that have been launched on the Polygon blockchain. Late last month, the price of Polygon’s native token ($matic) rose sharply after American billionaire (Mark Cuban) revealed that he had added Polygon to his investment portfolio. Other platforms recently launched on Polygon include 0x, Kyber Network, RenVM, mStable, and Aave.
Since the beginning of the year, the continuing rise in Ether’s gas fees is one reason why more networks are keen to embrace an L2 solution. Right now, gas fees have stabilized briefly. Bitinfocharts reports that the transaction fee is about $3.90. As of the middle of last month, the average gas fee was well over $65.
In March this year, hackers hijacked Cream finance‘s domain name and caused its servers to be offline briefly. During that period, the Cream finance team alleged that GoDaddy conspired with the hackers to perform the assault on their domain name since the domain name giants were handling that compromised domain.
Cream Token Makes Marginal Gains
Data from Coingecko shows that Cream finance’s native token, $Cream, made a slight gain of 2.5% yesterday to now trade at about $154. However, it is yet to rally back to its early February peak price when it reached nearly $375. $Cream token isn’t the only DeFi protocol that is on a decline; other DeFi protocols have been on a decline too.
Dappradar (a crypto analytics firm that ranks decentralized apps (dApps) for blockchains and protocols) reveals that Cream’s total value locked stands at about $690 million. In contrast, $matic (Polygon’s native token) now trades at about $1.14 after losing 1.4% of its value yesterday. After setting an all-time high of $2.63 around the middle of last month, it has declined by about 58%.
Polygon is also improving its network. As previously reported on Tokenhell, Polygon will soon launch a data availability layer solution (called Avail) for an infallible blockchain and use polynomial commitments to develop a 2-dimensional data availability plan.
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