The decentralized finance platform announced today that they are launching flash loans on the C.R.E.A.M. ecosystem.
C.R.E.A.M. Finance is a decentralized lending protocol built to help both individuals and institutions gain equitable access to financial services, bridging liquidity across underserved assets by providing algorithmic money markets to underserved assets. Its protocol is designed as a permissionless and blockchain agnostic chain running on Ethereum, Binance Smart Chain, and Fantom.
With flash loans, developers gain access to undercollateralized loans. This functionality enables instant borrowing power without collateral. The only condition for these flash loans is that they should be paid back within one transaction block to maintain a balanced liquidity profile. Flash loans are often used for democratized liquidations, leveraging arbitrage, collateral swapping, and interest-rate swapping.
This new set of functionalities for flash loans positions the decentralized finance protocol as the growing industry’s most capital efficient money market. With its launch, C.R.E.A.M. will offer a wide variety of flash loanable assets to its automated money market, helping users to gain more flexibility and capital efficiency over time. With the protocol’s currently expanding set of assets, users may access flash loans at the downsized cost of 0.03%.
“Bringing protocol-to-protocol flash loans to DeFi will increase capital efficiency and provide deeper liquidity for traders looking to access more lucrative lending services across a wider variety of digital assets," shared Cream Finance co-founder Leo Cheng.
C.R.E.A.M. is designed to list some of the most important tokens in decentralized finance such as governance tokens and stablecoins. According to the announcement, once launched, flash loans will be available across the Iron Bank (core lending protocol and liquidity backstop), CREAM v1, CREAM BSC, and CREAM Fantom. The flash loans will be available for the following tokens: WFTM, USDC, ETH, BTC, DAI, YFI, SUSHI, AAVE, CRV, BAND, KP3R, sUSD, COVER, HEGIC, LINK, SNX, SFI, and FRAX.
Given that C.R.E.A.M. is already integrated with the Binance Smart Chain (BSC), this move would also introduce the first ever flash loans from a money market to other BSC integrated protocols. Developers looking to build on top of C.R.E.A.M. and BSC are provided with immediate access to over $90 million of liquidity for flash loans.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.