Crypto.com Follows Binance With Launch of Liquid Swap DeFi Product
Crypto.com's new Defi Swap product will provide yet another platform on which users can token swap and yield farm.
Sep 11, 2020 at 3:05 p.m. UTCUpdated Aug 19, 2021 at 4:17 a.m. UTC
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Payment card provider Crypto.com has launched a liquidity swap platform, soon after the Binance exchange unveiled a similar offering.
- Called DeFi Swap, it allows users to seamlessly exchange or "swap" tokens in hosted pools and offers yield farming incentives to liquidity providers: the same as Uniswap and, more recently, by the likes of SushiSwap and Binance.
- Each swap incurs a 0.3% fee – also like Uniswap. Binance Liquid Swap, which only launched last week, charges fees depending on the token and liquidity in each pool.
- Crypto.com's DeFi Swap, which is built on top of Ethereum, will not be available in some nations including the U.S. or in Singapore, according to its white paper.
- Crypto.com also "reserves the option" to siphon off up to 0.05% per swap to fund further research and development for the protocol.
- DeFi Swap is decentralized protocol forked from Uniswap V2, but it offers additional yield incentives for users who stake in selected pools, as well as the firm's native CRO tokens.
- DeFi Swap is one of a number of automated market maker (AMM) exchanges that have come to market in recent years.
- Unlike a conventional order book, users effectively trade against a pool of assets kept liquid by token holders who deposit their assets in return for interest and a cut of transaction fees.
- Crypto.com's move closely mirrors that of Binance, which recently launched a platform called Liquid Swap to offer DeFi-like products for an audience more comfortable on centralized exchanges.
- Asked whether Crypto.com was taking aim at Binance, Crypto.com CEO Kris Marszalek said: "When we think of competition we tend to look at traditional financial institutions like banks and not other crypto startups."
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