Do you remember decentralized finance? The sector, also known as DeFi, has recently exploded and has established itself as the latest inevitable trend in the cryptocurrency market. After the phenomenon of Bitcoin (BTC), Altcoins, DeFi seems to be more than a trend. You were recently informed about this topic in a more than comprehensive article! In this sector of decentralized finance, which today weighs more than $ 12 billion, one of the central elements is decentralized exchange. They enable the exchange of tokens by means of a large number of intelligent contracts, which are largely based on the technological basis of Ethereum (ETH). In this context, there is a provider in the crypto market who quickly became interested in the DeFi market, namely Crypto.com (CRO). So in this article we are going to introduce you to how Crypto.com developed its offering called DeFi Swap, which allows users to take advantage of DeFi while staying in the Crypto.com platform environment.
DeFi swap from Crypto.com, Kezako?
As mentioned in the introduction, decentralized exchanges are at the heart of the DeFi sector. They allow you to acquire different tokens by exchanging them for other tokens that you have in your own crypto wallet.
Among these actors there are those who have established themselves and who have quickly become indispensable for anyone interested in decentralized finance: it is Uniswap (UNI). In the summer, the decentralized exchange even made headlines when its trading volume exceeded the volume of Coinbase, the US giant’s leading global cryptocurrency exchange.
When we get to DefiSwap from Crypto.com we find a resemblance to Uniswap, and that’s not surprising either, as DefiSwap is simply a fork of Uniswap V2. Crypto.com doesn’t hide it, in fact, it’s quite simply the philosophy of open innovation that this example illustrates. Because the Uniswap source code is openly available, the crypto.com research and development teams were able to get it to create a Crypto.com style version. In addition, the code of the DefiSwap platform is directly accessible according to the same principle. It is also important to note that decentralized finance is still a relatively young sector. It is therefore necessary to remain cautious about investing, as while it represents a significant potential for profit, it can also be a source of capital loss. Vitalik Buterin, the founder of Ethereum, has remembered this repeatedly.
We might then wonder why a centralized player like Crypto.com is starting to create its own decentralized exchange. The answer is first of all a question of philosophy. Crypto.com was launched in 2016 and is based on the goal of giving everyone control over their money, data and identity. Decentralized funding and its smart contract protocols offer Crypto.com a way to move in that direction of financial independence. That is why the company wanted to make this sector accessible to more than 3 million users by creating the DefiSwap offering. The ability for the platform to also use their CRO token, which will play a key role if you want to take full advantage of the DeFi token service. We’ll come back to this point a little later in this article.
What can we do on DefiSwap?
Now that we understand a little better what the context and objectives of Crypto.com are, we are offering this new offering in conjunction with the DeFi sector. It is now a question of how to take advantage of this new service, and more importantly, how to take full advantage of it, because yes, there are enough of them.
Firstly, as the name suggests, you can “exchange” DeFi tokens.
Understand here that you can exchange and receive DeFi tokens for Ether that are in your crypto wallet, for example. Let’s take a look at the tokens available on Crypto.com’s DefiSwap. Currently the list of available tokens is as follows: Crypto.com states that it tends to evolve over time as new tokens are added:
On DefiSwap we therefore find a large part of the flagship tokens for decentralized finance. How do you exchange one of these tokens on DefiSwap? The first thing you need to do when switching to DeFi Swap is to connect your cryptocurrency wallet. At the moment you can connect a Metamask or ConnectWallet type wallet. Once this promotion is completed you can start trading tokens on DefiSwap. Please note that decentralized financing means no transaction fees. In fact, there are fees that are shown to you before validating a transaction. They allow users to reward their tokens in the various pools of liquidity. Specifically, in a decentralized exchange, it is the liquidity providers who allow the exchange to exist, and therefore it is they who reimburse the associated transaction costs.
So you can exchange tokens, but you can also participate in Defiswap by becoming a Liquidity Provider (LP). To do this, go to the « Pool » tab and then to « Add Liquidity ». So depending on the tokens available, you can add liquidity and thus earn interest in these tokens that you make available to DefiSwap users. In this way, you can earn interest on transactions made with the pair of tokens that you make available to the exchange.
How can I use the CRO token in the DeFi Swap offer?
In addition to the functions of exchanging tokens and earning interest by providing liquidity in the various DeFi swap pools, the CRO, Crypto.com’s utility token, plays an important role in helping you draw all of the Advantages of this new functionality.
Specifically, this is shown on the DeFi Swap’s Boost tab. Thanks to the use of CRO tokens, you can multiply your interests by providing liquidity for DeFi Swap. You can multiply your interest premiums up to 20 times by storing as many CRO tokens as possible. This stakeout corresponds to a period of time during which you agree to keep your CROs in the DefiSwap application. Once you have stacked and cash ready, you can collect your interest within 30 to 90 days. Wondering how beneficial can holding CROs at DefiSwap be? Instead, check out the details of the multipliers above, depending on the number of CROs you hold. If you want a more precise idea, you can even access a special calculator on DefiSwap.
In addition, you can receive additional bonuses by providing liquidity for DefiSwap’s partner token pairs. For example, you can get bonus interest right now by providing liquidity in TRU tokens. This is how 100,000 TRU tokens are announced, which will be distributed as a reward for the liquidity providers. This bonus process can also be transferred to other tokens in the future.
If you would like to learn even more about how DefiSwap works, we also recommend the tutorial provided by Crypto.com. You can take control of the platform step by step, exchange DeFi tokens, provide liquidity and of course multiply your income thanks to CRO tokens.
After all, decentralized exchange means complete transparency of the volumes and transactions carried out. You can therefore view all analyzes of the DeFi Swap application from Crypto.com on a dedicated page.
Finally DefiSwap, a better Uniswap? DeFi Swap again stands for the ability and willingness of the Crypto.com exchange to position itself in the decentralized financial sector in order to pursue the goal of individual independence and financial control. An initiative that’s already part of a more global strategy since the exchange previously launched its DeFi wallet so you can take full ownership of your cryptocurrencies. If you are already a Uniswap user, you will find your way around DeFi Swap without any problems. The main interest is as you understood in the CRO-Staker article if you want to maximize your interests by providing liquidity on the platform. decentralized.
Guillaume has been dealing with blockchain technologies and cryptocurrencies for several years. He firmly believes in mass acceptance of this in the years to come. He is excited about the latest news and is always on the lookout for the latest trends in the cryptocurrency market. He is happy to share all of his secrets with you!
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