Sharing the Yield Love on Binance Smart Chain
We would like to thank the DeFi and crypto community for the feedback and support that you’ve shared with us this past week. In this post we will share insights into what we are building, how we are building it, and why we chose to begin with Binance Chain and Binance Smart Chain.
Enabling Yield for Unaddressed Assets & Communities
We believe that the financial system of the future should be open and inclusive. Through the permissionless nature of blockchain and automation of smart contracts we can realize this new financial system. While Ethereum is a permissionless blockchain technically, it is a permissioned blockchain socially. Because of this, only a subset of the crypto community is reaping the fruits of yield farming. We invite our friends at Curve, Compound, Balancer, Uniswap, and others to join us on Binance Smart Chain. (Maybe you can ask Vitalik if you can come out and play?)
Luckily, Binance already offers an easy path for holders of XRP, BCH, LTC and TRX to transfer their tokens from their native blockchain onto Binance Chain via the BEP2 standard as pegged tokens. Token holders can simply send their XRP, BCH, LTC, TRX into Binance.com and withdraw BEP2 versions of these coins today. No additional wrapping is required. These communities can join in on the yield farming fun when C.R.E.A.M. launches alongside the Binance Smart Chain in Q3. In addition to these assets, C.R.E.A.M. will also support BTC, ETH, BNB, and BUSD at launch.
Starting with Lending and Borrowing
The first product at C.R.E.A.M. is a lending and borrowing protocol. Here’s a preview of how C.R.E.A.M. will work:
Assume Farmer CZ has 10 BNB to lend, and Horticulturist Vitalik needs to borrow 100 BUSD. This series of transactions would take place over three transactions on C.R.E.A.M.:
1) Farmer CZ supplies 10 BNB to C.R.E.A.M., receiving 500 cBNB in return, spending ~$0.048 USD in gas, taking 5.1 seconds.
2) Horticulturist Vitalik supplies 100 BUSD to C.R.E.A.M., receives 5000 cBUSD in return, spending ~$0.071 USD in gas, in 3.3 seconds.
3) Farmer CZ borrows 100 BUSD from C.R.E.A.M., spending ~$0.092 USD in gas, in 2.8 seconds.
4) Farmer CZ ends up with 100 BUSD and 500 cBNB in his wallet.
As illustrated above, lending and borrowing of crypto assets on Binance Smart Chain are faster and cheaper. When ETH2 launches the high gas costs will go away. While we wait for ETH2, we can’t wait to welcome every one of you onto C.R.E.A.M.
Yo CZ — We got you. Binance DeFi right here.
Jeffrey Huang, Founder
Crypto Rules Everything Around Me, C.R.E.A.M.