Crypto.com, the popular payment card provider and crypto exchange, has launched an exclusive liquid swap platform. This comes after the Binance exchange launched a similar offering. Called DeFi Swap, the platform enables users to seamlessly trade or “swap” tokens in hosted pools. It offers yield farming incentives to liquidity providers, which is the same as Uniswap and SushiSwap and Binance being the most recent examples.
Every liquidity swap, much like Uniswap, incurs a 0.3% fee. In contrast, the Binance Liquid Swap launched just last week, charges fees dependent on the token and liquidity in every pool. The DeFi Swap is built on top of Ethereum. It will not be present in major countries, including the U.S and Singapore, according to its white paper.
Another interesting element of this new launch is the fact that Crypto.com ‘reserves the option’ to siphon off up to 0.05% per exchange to fund future research and development for the protocol. Forked from Uniswap V2, DeFi Swap is a decentralized protocol that offers additional yield benefits for users who are a part of a specific pool. This is also applicable to people who have a stake in the firm’s native CRO tokens. It is one of the many automated market maker (AMM) exchanges that have emerged in recent years. Unlike traditional order books, it has changed the norm where users efficiently trade against a pool of assets, which are kept liquid by the token holders.
These token holders deposit these assets in exchange for interest and a part of the transaction fees. Many believe that this move by Crypto.com mirrors that of Binance. This is because Binance recently launched a platform known as Liquid Swap. Binance’s platform offers DeFi-like products for a specific audience that is more comfortable with centralized exchanges.
We’re not competing: Crypto.com
When asked about the similarity between Binance and Crypto.com on this matter, the CEO of Crypto.com Kris Marszalek, commented, “When we think of competition we tend to look at traditional financial institutions like banks and not other crypto startups.”
In the initial stages, DeFi Swap will support wrapped ether (WETH), Chainlink (LINK), Compound (COMP), and CRO. It’ll also support the stablecoins USDT, USDC, and DAI.
Want to get started using Liquidity swaps and pools on Crypto.com? Here’s a video guide:
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