On April 19th, Slope Finance was glad to invite Crema Finance Co-founder GEO to talk about Crema Finance Mainnet at Slope Discord community.
Part 1️⃣A brief introduction about Crema Finance and Geo(Guest)
Our tech team was previously working in the digital derivatives trading areas. We provided technical support and market-making services for different CEXs and blockchain platforms. That’s why we are experienced and professional in all kinds of market-making strategies-related aspects. Since early last year, we moved our focus to DeFi. And we see the potential within the fast-growing non-evm ecosystems and its huge market demand. And Solana is one of the most mature and successful ones. That’s why we start Crema Finance to officially enter this market.
Part 2️⃣: 5 questions to help users to learn more about Crema Finance
- Why do you think CLMM is more powerful than AMM?
Most of the dexes on Solana are still based on AMM. But in AMM models, the liquidity has to be spread along the entire price curve from 0 to the infinite. This makes the capital utilization in AMM quite low because most of the liquidity in AMM pools is wasted in useless ranges.
comparatively, the CLMM allows liquidity providers to specify their price ranges when they add their liquidity. This can give more flexibility to liquidity providers. They can enjoy much higher capital efficiency because they can choose to concentrate their liquidity just around the current market price. In this way, most or all of their assets can be utilized by users’ transactions instead of staying idle for a long time. More fees can be earned in this way.
For traders, the price slippage during the token swap will be dramatically reduced because in CLMM, the market depth around the current market price is usually the highest. Even without the same level of TVL, the price slippage can still be much lower than that of AMM.
Besides, with CLMM, users can conduct the range order trading and single-asset liquidity adding. Especially when you set your price range small enough, the overall trading logic of range order trading is very similar to the limit order trading of those CEX, but our range order trading is fully on-chain. This can also be used as a powerful tool to conduct on-chain market making.
2. Crema has been live on mainnet for quite a while. How’s everything going?
It’s pretty crazy. Firstly, it shows great stability and robustness in the past two months running. That’s the most important thing.
Secondly, we’ve already got our initial traffic and achieved some significant milestones in all kinds of data metrics.
So far, our TVL has exceeded $10M. Our cumulative trading volume hit $240M in total. More than 16,000 unique wallets have interacted with our smart contracts.
also, even though our current TVL is still very limited, the daily trading volume that we present is very high, which can see the high trading efficiency within our CLMM algorithm.
We just launched our Caffeine farming event recently. We believe we’ll experience a new round of explosive growth.
3. What do you think of the role of Crema in the Solana ecosystem? What’s your vision of it in the long term?
We position ourselves as a key DeFi infrastructure provider. We want to create the best tools and strategies to give the best services to all the key roles in this ecosystem. No matter whether they are traders, LPs, or project owners.
For LPs, which we think is the most important role in Defi, we would like to bring them the highest capital utilization with our CLMM infrastructure.
For project owners, we are gonna provide them with a full toolbox including our range of order trading on-chain market-making tools, permissionless pool creating, programmable liquidity farming solutions and so on to lower their entry barrier and the difficulty of managing their tokens
For traders, we are delivering better prices compared with AMM and much lower price slippage. We have integrated our CLMM pools with all the major aggregators on Solana, such as Jupiter, Prism, 1Sol, to give users easier access.
No matter whether they are on our UI or external platforms, they can all enjoy the great price delivered by our CLMM.
In long term, we would like to bring this momentum to other non-evm ecosystems as well. Just to improve the overall capital utilization and trading efficiency in these ecos.
4. I heard that CLMM’s farming function is kind of different from AMM’s. Could you give us more light on that?
In CLMM, there’s something different from AMM. We are giving our LPs NFT as proof of their liquidity contribution, instead of using the common fungible LP tokens that AMM use.
We use NFT as the tool to record the data and information of a user’s liquidity position.
But you know, because every user’s NFT is totally different, not only about the liquidity amount but also about the price range. It’s important to have a reasonable standard to evaluate an NFT’s value so that we can distribute our farming rewards fairly
Following this, we designed different styles of farming strategies for different kinds of projects to ensure we are incentivizing effective liquidity.
For stable trading pairs, we have an overlapping range strategy to encourage people to stabilize its price. For non-stable pairs, we have free generation performance strategy to attract more professional LPs. There are more different strategies on the way.
5. What do you think of the partnership with Slope? What aspects can we explore together?
The partnership with Slope is awesome. We put great emphasis on mobile compatibility. And Slope wallet is definitely the leader in the mobile wallet.
As I mentioned, our product intensively involves the NFT utilization, in a practical way instead of speculation. And Slope wallet is a Defi and NFT-friendly crypto wallet. We see the natural fit between us
Also, later on we are gonna develop our multichain versions and support the cross-chain swap between different ecosystems. With Slope’s support, I think it’s even closer to the truly seamless cross-chain swap.
6. Back to the Caffeine farming event you launched recently? Is there anything special you would like to introduce to us?
Sure. We recently launch this. It’s actually a prelaunch farming event to warm up our upcoming IDO.
So far we haven’t launched our token, but we do want to allow our users to earn some early incentives from us through this event.
In the Caffeine farming event, instead of getting CRM rewards directly, users will receive Caffeine token first. Later on, when users accumulate enough Caffeine, they can use it to mint a NFT key. This key can be used to unlock our token treasure box after our IDO claims their final token rewards
Final rewards will be in our official token CRM, and some other project tokens sponsored by our partners.
7. What’s your next-stage plan? Would you like to share some information with us in advance?
We’ll keep optimizing our CLMM algorithm to make sure its best trading performance. Because Solana has a very strict computational limit on its network but CLMM is a complicated algorithm, we’ll make more efforts on its scalability.
We’ll also support the permissionless pool creation on Crema to activate the Solana ecosystem. To be honest, projects on Solana haven’t been served as good as EVM ecosystems do. Those small-scale but highly active projects are significant to any Defi eco
And then it’s about our multichain versions and cross-chain swap
Part 3️⃣: 5 LIVE questions: 5 Users who follow all rules and ask the best questions in the community will share 100 USDC
1. Do you have plans to onboard ambassadors for this project? How do you feel about having communities across the globe aid growth?
Yes, we do have our global ambassador program. Here is a detailed introduction. We’ve already seen some of them making their great contribution to the growth and expansion of Crema.https://medium.com/@Crema.finance/crema-finance-global-ambassador-program-9fc59d16299b
2. Do you have any Bridge features in your next plans from other Blockchains such as Arbitrum or Fantom with Crema Finance?
Our main targets are those popular and fast-growing non-evm blockchains, such as Terra, Near, Cosmos, etc. We do have the cross-chain solution plan in our roadmap, but we wouldn’t develop the bridge by ourselves. We’ll cooperate and integrate with existing influential cross-chain bridges such as Wormhole and Allbridge to provide our low-slippage cross-chain swap to end-users.
3. Can you tell explain more about the #CremaFianance ‘s ONE SIDE LIQUIDITY features? What type of effects do the users face? Will the rewards get increased or decreased?
A brief explanation of the single-sided liquidity adding. For example, the current price of SOL-USDC is 100. I can set my price range at [70–90], which is lower than the current price. In this case, I only need to add USDC into the pool. Only when the price enters my range, my liquidity position will be active. This is what we called range order trading, which can be used to simulate a lot of advanced trading strategies to help u earn more revenue
4. Why did you choose SOLANA? Do you think SOLANA has potential? What advantages do you get if you use the SOLANA network?
It’s driven by both the market demands and our own technical strength. The user base and trading needs in Solana are huge but the current infrastructure is weak and there’s a lack of high-efficient trading facilities. Also, the main programming languages of our team are based on Rust and Golang, which exactly fits the needs of Solana. We think we can combine this and create something great
5. Safety and Security are two things to be considered for investors before making an investment decision. Which technology is used for its great privacy? How private and secure platform is? are all assets on Insured?
Security is always our top priority of us. That’s why we get our smart contract audited at the very beginning of our project. We got audited by Bramah systems, one of the most active and influential auditing organizations in Solana eco, which has done audits for dYdX, Port Finance and a number of influential projects in Solana
Part 4️⃣: 4 Twitter Questions: 4 Users who followed the rules and ask the best questions on Twitter will share 200USDC
- Concentrated liquidity pools cannot minimize IL risk for liquidity providers but even increase? What do you think about this?
Impermanent loss is actually not directly related to the algorithm itself. CLMM can give LPs higher capital efficiency and they can earn higher revenue by utilizing it well. But at the same time, if someone mismanages their price range or didn’t adjust their prices in time during rapid market change, IL is possible. What we will do is design and create a series of advanced tools and auto strategies based on the underlying protocol to help those general users easily manage their positions. We’ll also open our SDK to allow any defi developers to design their own based on our algorithm.
2. Can you list 3 killer features of your project that make it ahead of competitors? What are the competitive advantages that you feel most confident about?
CLMM itself, as the fundamental. And then, programmable liquidity farming, smart router, multichain setup. We would like to leverage this power to redefine the capital efficiency of non-evm Ecos.
3. With all of the tech available on Crema Finance, what problem are you trying to solve especially in terms of liquidity mining problem?
In the aspect of liquidity mining, we are trying to create truly efficient and effective liquidity mining strategies to help project owners and token issuers rent liquidity from the public in a cost-effective way. And we want users who made the real contributions to get incentivized.
4. Nowadays partnership is one of the most important things in a project’s long run, can we see new partnerships for the project soon?
Of course. We’ve already got a batch of outstanding partnerships with the best ones in the Solana eco. For example, we are integrated by all major aggregators on Solana like Jupiter, 1Sol, and Prism. We got cooperation with stablecoins like USDH and PAI. We are working closely with different lending and staking platforms such as Marinade, Port Finance, Socean, etc. They’ve all given us a lot of key resources in this eco. We’ll introduce you to more significant partnerships in the coming months. Plz stay tuned.
About Crema Finance
Crema Finance is a powerful concentrated liquidity protocol that provides superior performance for both traders and liquidity providers. We deployed the first concentrated liquidity market maker (CLMM) algorithm on Solana mainnet that allows users to add liquidity within their specified price ranges.