Top 5 DeFi Projects on Cronos
Sep 01, 20224 min read
Following financial markets may have often heard “decentralized finance” or “DeFi.” DeFi makes peer-to-peer transactions convenient for investors in an increasingly digital financial world. Using the efficiency and power of smart contracts, DeFi platforms create a space for lending, borrowing, trading, saving, and receiving interest, which does not require all the usual bureaucracy and trifles.
In this article, we will talk about the five most promising DeFi projects in the Cronos network. Cronos can rightfully be called one of the fastest-growing projects in the entire market. Cronos is the brainchild of the well-known crypto space company Crypto.com. This unique blockchain network interacts with Ethereum and the Cosmos ecosystem, giving users full access to Web3.
Today, Cronos is an entire ecosystem in a decentralized space with a multi-million international community. The team managed to build a perfectly working product, attract huge investments from many investors and create a fund to finance new developments in the protocol. Anyone can apply for a grant to implement their project in the ecosystem. The Cronos ecosystem is experiencing an unprecedented influx of new users, and the total value locked in April exceeded three billion dollars. Which projects occupy the dominant position, find out in our article.
VVS Finance is the dominant DeFi project in the Cronos ecosystem and has more than 50% of the total value locked. VVS Finance is a Very, Very Simple DEX that allows users to instantly and cost-effectively swap tokens and earn high rewards. Main products of VVS Finance:
- Bling Swap. A decentralized crypto exchange instantly allows traders to swap tokens with low fees and slippage. Users can also provide liquidity (deposit token pairs) and receive a portion of 0.2% of transaction fees collected by the pool.
- Crystal Farms. A product that allows Liquidity Providers to stake their LP tokens and earn lucrative $VVS rewards.
- Glitter Mines. The platform allows users to deposit $VVS tokens into a staking pool to earn more $VVS tokens.
In addition to simplicity and high profitability, VVS Finance allows users to mine a personal NFT Mole Miner and receive increased farming rewards and other privileges.
Tectonic is called the next branch of the evolution of crypto lending platforms. Tectonic is a cross-chain non-custodial money market protocol that provides favorable and secure conditions for crypto borrowers and lenders. The platform is extremely secure, has certification from the leading blockchain security auditors, and the project team plans to direct 10% of the interest paid by borrowers to the insurance fund. Within the framework of Tectonic, two types of crypto users benefit:
- Lenders can safely deposit their tokens and generate a high income. The crucial point is that rewards can be withdrawn instantly without waiting for the end of the lockup period.
- Borrowers can borrow crypto assets at favorable interest rates without liquidating their original assets.
In the future, the developers also plan to add support for $TONIC (native token) staking and provide users with the opportunity to receive additional passive income.
MM Finance is the third most important DeFi project in the Cronos network. MM Finance is a decentralized crypto exchange that supports Cronos and Polygon networks. This exchange has gained great popularity due to its low trading fees (0.17%). MM Finance became the first DEX to implement the Protocol Owned Liquidity into its system. In addition to instant exchange and low trading fees, MM Finance also provides traders with the opportunity to earn. Users can increase their capital in several ways:
- Liquidity Providers can deposit their LP Tokens into Liquidity Pools and earn an internal $MMF token. In addition, Liquidity Providers who stake their LP tokens receive a portion of the trading fees (0.10%) collected by this pool.
- Users can deposit their $MMF tokens into partner Pools and earn tokens for partner projects.
As for the Protocol Owned Liquidity, its essence lies in that part of the trading fees is directed to buyback $MMF tokens for the formation of MMF LPs. This move will ensure the liquidity of the $MMF token even during the bear market and ensure a healthy increase in the token’s price.
Stablecoins have long been an integral part of the daily life of crypto users, and Ferro developers could not help but note this. Ferro is an AMM protocol that allows users to instantly and cost-effectively swap stablecoins and pegged assets and earn lucrative rewards with their help. The protocol facilitates and reduces the cost of exchanging stablecoins by choosing the most effective route. In addition, users can support the protocol and provide liquidity. Thus, they become liquidity providers and receive LP tokens reflecting their pool share.
Further, liquidity providers can stake their LP tokens and receive a portion of the trading fees generated by the pool. 60% of the reward in the form of $FER tokens can be withdrawn instantly, while 40% are converted to $xFER and sent to a one-month locking pool. In addition, users can choose a pool with a longer locking duration. Thus, liquidity providers can significantly boost their APR.
Single Finance is an ambitious DeFi project that helps yield farmers to increase income, reduce the risks of impermanent loss, and automate the entire process. Single Finance is a multi-chain platform that operates on Cronos, Fantom, and other EVM-compatible chains. The platform uses bots to monitor the market situation effectively and execute pre-configured strategies. The key features of Single Finance are that the platform tracks user performance in USD, allowing yield farmers to track their profits and losses transparently.
Moreover, the platform uses automated bots whose task is to protect users from liquidation. Bots automatically execute stop loss orders, allowing users to save up to 85% of their capital. Also, Single Finance presents the world’s first LP Time Machine. It provides real return performance data, including trading fees, DEX yields (yield farming), and price effects to help users pick their winning pairs.