Milkomeda Accelerator: Introducing CreamTank
The results are in and Batch 1 of the projects are ready to enter the Milkomeda Accelerator program. Here we’re going to take a closer look at one of those projects, CreamTank. What is CreamTank? What do they bring to the Milkomeda ecosystem? And what’s the story of the team behind it?
What is CreamTank?
CreamTank is the first lending and borrowing protocol for over-collateralized loans in the Milkomeda ecosystem. Users looking to be lenders on CreamTank provide liquidity to pools of select assets. In return, they receive a pro-rata distribution of interest rates for loans issued through that pool. Borrowers borrow assets from these pools by depositing their accepted collateral.
Each pool has a variable interest rate for the loans drawn from it. The interest rate is calculated by pool utilization, meaning that the higher percentage of the pool’s assets issued as loans, the higher the pool’s interest rate. The interest rate range has a maximum and minimum, and each pool has a “Utilization Kink” in its interest rate range, meaning that above a certain level of pool utilization, the interest rate climbs at a much higher rate. This is to dissuade people from borrowing from the pool when the utilization rate is high.
The value of the assets a borrower can borrow against their collateral is determined by a Collateral Factor, e.g. if the collateral factor is 75% then a borrower can borrow 75% of the value of their deposited asset. Users must keep their collateral ratio, i.e. the value of their deposited collateral in relation to their loan in good standing or face liquidation by the protocol in order to cover the assets that they borrowed.
The CreamTank protocol will be governed by a DAO of token holders. Amongst other things, DAO members will be able to decide which assets can be used for lending and borrowing on the platform and will also be able to adjust the parameters of the platform.
What CreamTank Brings to Milkomeda
Lending and borrowing is one of the fundamentals that underpins a successful DeFi ecosystem on any blockchain. The CreamTank protocol allows users of Milkomeda to unlock the liquidity of the tokens they currently hold while keeping total custody of those assets. CreamTank allows users to maximize the use of their funds on Milkomeda, be it by borrowing or lending through the CreamTank protocol.
The Team Behind CreamTank
There are ten team members behind the CreamTank protocol. The core team comes from various backgrounds and has experience in financial and DeFi protocol development spaces. Members of the team have successfully developed multiple DeFi protocols on EVM chains and are developing CreamTank because they say, “there should be a lending and borrowing protocol on Milkomeda.”
Follow CreamTank
Website: creamtank.com
Twitter: /TankCream
Telegram: /creamtank
Discord: Join Here
