Do you remember decentralized finance? The sector, also more commonly known as DeFi, has recently exploded and established itself as the latest unmissable trend in the cryptocurrency market. After the phenomenon of Bitcoin (BTC), altcoins, DeFi seems to be more than a trend. You were recently told about this subject in a more than comprehensive article! In this sector of decentralized finance which still weighs more than 12 billion dollars today, one of the central elements are decentralized exchanges. They allow, by means of a multitude of smart contracts, to exchange tokens, mostly built on the technological basis of Ethereum (ETH). In this context, there is one player in the crypto market who quickly became interested in the DeFi market, and that is Crypto.com (CRO). Thus, in this article we will present to you how Crypto.com developed its offer called DeFi Swap which allows its users to benefit from the advantages of DeFi while remaining in the environment of the Crypto.com platform.
We talked about it in the introduction, decentralized exchanges are at the heart of the DeFi sector, they allow you to acquire the various tokens by exchanging them for other tokens that you have in your own crypto wallet.
Among these players, there are some who have established themselves and who have quickly become essential for anyone interested in decentralized finance: it is aboutUniswap (UNI). In the summer, the decentralized exchange even hit the headlines when its trading volumes exceeded the volumes of Coinbase, the US giant number one cryptocurrency exchange in the world.
Arriving on DefiSwap from Crypto.com, we find an air of resemblance to Uniswap, and well, nothing surprising since DefiSwap is quite simply a fork ofUniswap V2. Crypto.com does not hide it, indeed it is simply the philosophy of open innovation which is illustrated with this example. Since Uniswap’s source code is openly accessible, crypto.com R&D teams were able to obtain it to create a crypto.com-style version. Moreover, according to this same principle, the code of the DefiSwap platform is also directly accessible. It is also important to note that decentralized finance is still a fairly recent sector. It is therefore necessary to remain cautious when investing in it because, while it can represent a significant potential for gain, it can also be a source of loss of capital. This is what happened repeatedly remind Vitalik Buterin, the founder of Ethereum.
We could then ask ourselves why a centralized actor like Crypto.com sets out to create its own decentralized exchange. The answer is first a question of philosophy. Launched in 2016, Crypto.com was built around the goal of empowering everyone to be in control of their money, data and identity. Decentralized finance and its smart contract protocols represent a way for Crypto.com to move in this direction of financial independence. This is why it wanted to make this sector accessible to its more than 3 million users by creating the DefiSwap offer. The opportunity for the platform to also take advantage of the use of its CRO token which plays a key role if you want to take advantage of all the benefits of the DeFi Token service, we come back to this point later in the article.
So, now that we understand a little better what emerges from the context and the objectives of Crypto.com by offering this new offer in connection with the DeFi sector. It is now a question of how you are going to be able to use this new service and more importantly, how to get all the benefits because yes there are enough of them.
First, as the name suggests, you can redeem “Swap” DeFi tokens.
Understand here that you can exchange and thus obtain DeFi tokens against Ethers which are on your crypto wallet for example. Let’s look at the tokens available on DefiSwap from Crypto.com. Currently, the list of available tokens is as follows, Crypto.com explains that it tends to evolve over time with the addition of new tokens to come:
We thus find on DefiSwap a most of the flagship tokens of decentralized finance. So how do you exchange one of these tokens on DefiSwap? The first thing to do when you go to DeFi Swap is to connect your cryptocurrency wallet. For now you can connect a Metamask or ConnectWallet type wallet. Once this is done, you can start trading tokens on DefiSwap. Please note, decentralized finance does not mean no transaction fees, in fact, there are fees that are indicated to you before you validate a transaction, they make it possible to remunerate users who make their tokens available in the different liquidity pools. Concretely, on a decentralized exchange, it is the liquidity providers who allow the exchange to exist and it is therefore they who recover the associated transaction costs.
So you can swap tokens but you can also take part in Defiswap by becoming a liquidity provider (LP). To do this, go to the “Pool” tab then “Add Liquidity”. You can thus choose, depending on the tokens you have available, to add liquidity and thus start earning interest on these tokens that you make available to DefiSwap users. This will allow you to earn interest on transactions made on the pair of tokens that you make available to the exchange.
Beyond the functionalities allowing to exchange tokens and to earn interest by providing liquidity in the various DeFi Swap pools, the CRO, the utility token of Crypto.com also plays a major role in allowing you to take full advantage of this new functionality.
Concretely, this materializes on the “Boost” tab of DeFi Swap. Indeed, thanks to CRO token staking, you will be able to multiply your interests by providing liquidity on DeFi Swap. You will be able to multiply your interest rewards up to 20 times if you store as many CRO tokens as possible. This staking corresponds to a period during which you agree to keep your CROs on the DefiSwap application. Once you stack and provide cash, you can then collect your interest within 30-90 days. Are you wondering how beneficial holding CROs can be on DefiSwap? Instead, take a look at the detail of the multipliers above depending on the number of CROs you hold. If you want to get a more precise idea, you can even access a dedicated calculator on DefiSwap.
In addition, you may receive additional bonuses by providing liquidity on pairs of DefiSwap partner tokens. For example, at the moment you can receive bonus interest by providing liquidity in TRU token. 100,000 TRU tokens are thus announced, which will be distributed as rewards for the liquidity providers. This bonus process may also be carried over to other tokens in the future.
If you want to know even more about how DefiSwap works, we also recommend the tutorial made available by Crypto.com. You will thus be able to take control of the platform step by step, start exchanging DeFi tokens, provide liquidity and of course multiply your earnings thanks to CRO tokens.
Finally, decentralized exchange means total transparency on the volumes and transactions carried out. You can therefore view all the analytics of Crypto.com’s DeFi Swap application on a dedicated page.
Finally, DefiSwap, a better Uniswap? DeFi Swap again represents the ability and willingness of the Crypto.com exchange to position itself in the decentralized finance sector to pursue the goal of individual independence and financial control. An initiative that is already part of a more global strategy since the exchange had previously launched its DeFi wallet to allow you to take full possession of your cryptocurrencies. If you are already a Uniswap user, you will find your way without any problem on DeFi Swap, the main interest will be as you will have understood in the CRO staker article if you want to maximize your interests by providing liquidity on the platform. decentralized.
Guillaume has been passionate about Blockchain technologies and cryptocurrencies for several years now. He strongly believes in mass adoption of these in the years to come. Eager for crisp news and always on the lookout for the latest trends in the cryptocurrency market, he takes pleasure in sharing all their secrets with you!