Cream

Cream Finance, also known as CREAM, is a decentralized cryptocurrency that aims to restructure the financial system using smart contracts. The project was founded in 2012 and is named as an homage to the Wu-Tang Clan's song "C.R.E.A.M." (Cash Rules Everything Around Me).

Cream Finance went live on Binance Smart Chain on September 11, 2020, initially supporting several major tokens such as BNB, BUSD, BTC, ETH, XRP, BCH, and LTC. The project operates as a multipurpose DeFi protocol, primarily functioning as a cryptocurrency exchange and lending platform. It is a forked version of Compound Finance (COMP) and works based on liquidity mining.

In August 2020, the CREAM token was launched, and it experienced significant price peaks in September 2020 and February 2021. The token's price rose by almost 300% during these periods, driven by news of the Cream Swap launch and the addition of new liquidity pool tokens as collateral for borrowing and lending.

However, the project faced a major setback on October 27, 2021, when its V1 Ethereum markets were exploited, resulting in a loss of $130 million USD. To compensate impacted users, the DeFi protocol distributed a total of 1,453,415 CREAM tokens.

In 2022, Cream Finance launched the Iron Bank (IB) token to expand its protocol-to-protocol loan offerings and synthetic assets. The IB token was deployed on Fantom Opera to reduce gas costs.

Today, Cream Finance continues to operate as a DeFi protocol, offering various services such as lending, borrowing, and liquidity mining. Users can stake CREAM tokens to earn passive income, although this comes with risks such as potential losses if the token's value plummets.

Cream Finance, represented by the token CREAM, is a decentralized lending protocol that allows users to borrow or lend assets freely from a pool. It operates as a non-custodial platform, meaning users maintain control over their assets throughout the process. The protocol primarily functions as a peer-to-peer cryptocurrency exchange and lending platform, utilizing liquidity mining to facilitate transactions.

• Lending and Borrowing: Users can deposit cryptocurrencies as collateral to borrow a smaller amount of another cryptocurrency. The borrowing process does not have a time limit, and no documentation is required.
• Liquidity Mining: Users can stake their cryptocurrencies to earn yields, which can be withdrawn at any time. The liquidity pools reward stakers with a cut of the trading fees from the Cream Finance Swap, a decentralized exchange (DEX) on the protocol.
• Cream Finance Swap: This DEX protocol is forked from Balancer and operates similarly to Uniswap. It uses an automated market maker (AMM) to determine prices based on the ratio of two assets in a pool, eliminating the need for a centralized order book.
• Governance: CREAM token holders have governance power over the platform, allowing them to vote on network decisions and receive a percentage of the fees from token swapping.

• Staking CREAM Tokens: Users can stake their CREAM tokens to earn passive income. The expected APY varies based on the duration of staking, but it comes with risks, such as potential losses if the market value of CREAM drops.
• Supplying Assets: Users can supply digital assets to the platform, earning interest based on supply and demand. The interest rates (APY) are determined by the supply and demand dynamics.

• Multi-Chain Support: Cream Finance operates on multiple blockchain platforms, including Ethereum, Binance Smart Chain, Fantom, and Polygon, allowing users to choose the most suitable option for their needs.
• Wallet Integration: Users can connect their wallets, such as MetaMask or WalletConnect, to the CREAM platform to manage their assets and participate in lending, borrowing, and liquidity mining.

Overall, Cream Finance offers a comprehensive DeFi platform that combines lending, borrowing, liquidity mining, and governance, providing users with a range of opportunities to earn passive income and participate in the decentralized finance ecosystem.

The token Cream (CREAM) has several strengths that contribute to its value and utility within the Cream Finance ecosystem:

1. Governance Rights: CREAM token holders have the ability to participate in the governance of the Cream Finance protocol, allowing them to vote on proposals that impact the platform's direction. This includes decisions on listing new assets, adjusting reserve ratios, and setting collateral factors.

2. Economic Rights: Holders of the CREAM token are entitled to a percentage of the fees generated by token swapping on the platform. They receive a portion of the 0.05% fee from token swapping transactions, providing a source of passive income.

3. Staking Rewards: Users can stake their CREAM tokens to earn rewards. The expected Annual Percentage Yield (APY) varies based on the duration for which tokens are staked, offering a way to generate additional income.

4. Lending and Borrowing: The CREAM token enables users to borrow, lend, and stake their digital assets within the Cream Finance ecosystem. This facilitates liquidity and provides opportunities for users to engage in various financial activities.

5. Multi-Chain Support: Cream Finance operates on multiple blockchains, including Ethereum, Binance Smart Chain, and Fantom. This allows users to choose the blockchain that best suits their needs, which can be beneficial in terms of transaction costs and other factors.

6. Liquidity Mining: The platform rewards users with CREAM tokens for providing liquidity, which helps maintain a healthy and active market.

These strengths collectively contribute to the value and utility of the CREAM token, making it an attractive option for those interested in decentralized finance (DeFi) and cryptocurrency investments.

Cream Finance (CREAM) faces several financial risks, primarily related to its security vulnerabilities and the impact of attacks on its platform. The most significant risk is the potential for large-scale hacks, which have already occurred multiple times, resulting in significant losses. For instance, the third hack in 2021 led to a loss of over $130 million and severely damaged the project's credibility and trust within the community.

Another key risk is the manipulation of asset pricing, which can be exploited by attackers to create undercollateralized loans. This was a major factor in the 2021 hack, where the attacker manipulated pricing calculations to drain assets from the platform.

Additionally, the project's reliance on smart contracts and oracles can lead to vulnerabilities that can be exploited. The CREAM Oracle system has been identified as having key limitations, which were utilized by the attacker to manipulate asset prices.

The financial risks associated with these security vulnerabilities can be substantial, including direct costs such as resolving the issue, recalling assets, and disposing of contaminated products. Indirect costs may also include lost revenue from halted or cancelled orders, brand damage, and prolonged legal fallout.

Overall, the financial risks faced by Cream Finance are significant and can have long-lasting impacts on the project's viability and investor confidence.

• Jeffrey Huang: The CEO and founder of C.R.E.A.M. Finance, a Taiwanese-American tech entrepreneur and developer with experience in the crypto industry. He is also the founder of Mithril (MITH) crypto and has written informative articles on Medium.
• Three Developers: The core team includes three developers with extensive computer science backgrounds who work alongside Jeffrey Huang.
• Co-Founder: The co-founder of Creamcoin, based in Folkestone, England, with 419 followers on LinkedIn.