Crypto.com has launched a DeFi Swap service, allowing users to swap between various decentralized finance tokens.
The firm is promising its customers up to 20x multiplier on their yields.
At the same time, it points out there are plenty of risks.
Crypto.com, a Hong Kong-registered crypto company, has launched a new service, DeFi Swap. According to its white paper, it allows decentralized finance (DeFi) users to swap their tokens between various DeFi liquidity pools.
DeFi Swap is now live on Ethereum Mainnet! 🔥 swap & farm #DeFi coins 🔥 provide liquidity to earn Triple Yield 🔥 14,000,000 $CRO launch incentive 🔥 stake #CRO to get up to 20x higher yield
Launched on the Ethereum mainnet, the service allows users to swap and farm DeFi tokens as well as provide liquidity and earn “Triple Yield.”
“DeFi Swap is designed to be the best place to swap and farm DeFi coins at the best available rate, leveraging proven and audited protocols, while offering an outstanding incentive program powered by CRO,” said the white paper.
At launch, DeFi Swap will support Wrapped Ether (WETH), Tether (USDT), USD Coin (USDC), Dai (DAI), Chainlink (LINK), Compound (COMP) and Crypto.com Coin (CRO).
Its users can swap between any two supported tokens by paying a 0.3% swap fee while Crypto.com Coin (CRO) holders—as liquidity providers (LPs)—are incentivized for contributing to liquidity pools.
“At launch, the entire amount of the swap fees (0.3% per swap) will be distributed to liquidity providers. Crypto.com reserves the option to later re-direct a maximum of 0.05% per swap to fund the ongoing R&D of the protocol,” the firm added.
“Under the current set-up, users can get up to 20x multiplier, if they stake no less than 50,000,000 CRO for 4 years,” the firm added.
DeFi comes with risk
Still, the company stressed that Crypto.com’s protocols are “a set of smart contracts made available by Defi Labs (‘Crypto.com’) on a voluntary, ‘as-is’ and ‘as available’ basis,” relieving itself from “all risks arising from interactions with the Protocol” and liability “for any claim, damages or other liability, whether in contract, tort or under any other theory of liability, arising from, out of or in connection with the Protocol.”
Not only is it keeping the protocol at arm’s length, but it also stresses the risk of DeFi assets. Things that might happen include: “Partial or total loss of virtual assets,” “Collapse in liquidity with respect to virtual assets,” and even the “Possibility of market misconduct by participants including for example market manipulation.”
It might as well write that it could all disappear in a puff of smoke.
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