Top 5 DeFi Projects on Cronos I Notum
Sep 01, 202215 min read
If you are related to the financial markets and the crypto world, most likely you have already heard about “decentralized finance” or “DeFi.” Simply put, DeFi is a financial instrument in the form of services and applications built on the blockchain. Their growing popularity is due to the convenience of peer-to-peer transactions for investors. Moreover, DeFi projects actively use all the advantages of Smart Contracts and create a space for lending, borrowing, trading, saving, and receiving interest, which does not require all the usual bureaucracy and trifles.
The main goal of DeFi projects now is to replace the existing financial system with open-source protocols and become a recognized alternative to the banking sector. Thus, people will have access to decentralized lending, new platforms, and projects, and making money on cryptocurrency assets will become much more accessible. This article will help you learn about the most promising and popular DeFi projects in the Cronos network.
Cronos can rightfully be called one of the fastest-growing projects in the entire crypto market. Cronos is the EVM (Ethereum Virtual Machine) chain ecosystem which is the brainchild of the well-known crypto space company Crypto.com. This unique blockchain network interacts with Ethereum and the Cosmos ecosystem, giving users full access to Web3. Now, its main goal is to scale the DeFi ecosystem and give developers the opportunity to port apps from Ethereum.
Today, Cronos is an entire ecosystem in a decentralized space with a multi-million international community. The team managed to build a perfectly working product, attract huge investments from many investors and create a fund to finance new developments in the protocol. Anyone can apply for a grant to implement their project in the ecosystem. Keep reading to find out which Cronos chain projects will occupy the dominant position in 2023.
Top 5 Best Cronos Blockchain DeFi Projects
1. VVS Finance
VVS Finance is the dominant DeFi project in the Cronos ecosystem and has more than 50% of the total value locked. VVS Finance uses the low-speed Cronos "Built on the low-speed Cronos blockchain, VVS Finance uses proven protocols." - BlockChain24. Thus, VVS Finance is a Very, Very Simple DEX that allows users to instantly and cost-effectively swap tokens and earn high rewards.
VVS Finance by Cronos bills itself as the simplest DeFi marketplace currently in existence, which even people with limited knowledge of blockchain technology can take advantage of. However, how does VVS Cronos work? This project is an automated market maker where the exchange of cryptocurrencies is provided by liquidity pools where users deposit funds. Based on many VVS Finance crypto reviews, it can be concluded that the project is the largest dApps deployed in the Cronos network.
Main products of VVS Finance:
- Bling Swap. VVS Swap is a decentralized crypto exchange that allows Cronos Swap users to exchange tokens with low fees and slippage. Now, the cost of the trading commission is 0.3%, and the fees are shared between the project team and liquidity providers. You can also provide liquidity yourself (deposit token pairs) and receive a portion of 0.2% of transaction fees collected by the pool.
- Crystal Farms. This is a product that shows existing liquidity across different pools and user rewards for depositing funds. Thus, VVS Crystal Farms allows Liquidity Providers to stake their LP tokens and earn lucrative $VVS rewards. Also, it’s worth mentioning that the high rewards will be available only for a certain period of time.
- Glitter Mines. This feature is quite simple and allows users to deposit $VVS tokens into a staking pool to earn rewards. Now, there are several ways to get additional $VVS - auto VVS (automatically sums the tokens you stake for profit), manual VVS (you need to manually harvest rewards and compound them back into the mine), and partnered mines. In the case of the latter method, "you need to stake the xVVS governance token and earn tokens of VVS Finance’s partners within the mine opening period. Note that you will have to manually harvest your rewards." - BeinCrypto.
A distinctive feature of VVS finance staking is the liquidity provision, which means that everyone who uses Cronos VVS can become a liquidity provider and receive two-thirds of the swap fees in the pool. Moreover, VVS Finance review draws attention to the fact that users of the project receive early exclusive access to sales of new tokens from Cronos ecosystem projects. Also, in addition to simplicity and high profitability, VVS Finance allows users to mine a personal NFT Mole Miner and receive increased farming rewards and other privileges.
Resource - CronosNews twitter.
Tectonic DeFi is called the next branch of the evolution of crypto lending platforms. Tectonic is a cross-chain non-custodial money market protocol that provides favorable and secure conditions for crypto borrowers and lenders. According to Tectonic crypto review, users and investors can get rewards by depositing their assets without lockup periods. At the same time, “borrowers can borrow liquidity by supplying their crypto assets as collateral." - CoinMarketCap.
Also, the Tectonic Cronos platform is extremely secure, has certification from the leading blockchain security auditors, and the project team plans to direct 10% of the interest paid by borrowers to the insurance fund. However, how to benefit from the platform?
- For lenders. You can deposit your tokens, which will help you earn income. Besides, you don’t have to wait for the end of the lockup period because rewards can be withdrawn instantly.
- For borrowers. Cronos crypto assets will be available to you at favorable interest rates. You also won't have to liquidate your original assets.
- For traders. You will also be able to borrow Cronos crypto and "capitalize on short-term or long-term financial opportunities like staking or yield farming." - CoinMarketcap.
3. MM Finance
MM Finance is one of the top (the third most important) DeFi projects in the Cronos ecosystem. MM Finance is a decentralized crypto exchange that supports Cronos and Polygon networks which has gained great popularity due to its low trading fees (0.17%). MM Finance is also one of the most promising DeFi projects as it became the first DEX to implement the Protocol Owned Liquidity into its system. Thus, Mad Meerkat Finance unites all the crypto projects across Cronos. Also, the MM Finance crypto project has great support such as launchpad fundraising, marketing support, Cronos grant, etc.
In addition to all this, MM Finance also provides traders with the opportunity to earn. Users can increase their capital in several ways:
- Liquidity Providers can deposit their LP Tokens into Liquidity Pools and earn an internal $MMF token. Also, those Liquidity Providers who stake their LP tokens receive a portion of the trading fees (0.10%) collected by this pool.
- Users can deposit their $MMF tokens into partner Pools and earn tokens for partner projects.
Speaking of Protocol Owned Liquidity, part of its trading fees is directed to buyback $MMF tokens for the formation of MMF LPs. This move will ensure the liquidity of the $MMF token even during the bear market and ensure a healthy increase in the token’s price.
4. Ferro Protocol
For many years now, stablecoins have been popular in the crypto market and allow users to safely store assets. Ferro developers noticed this and created one of the best Cronos blockchain projects now. Ferro is an AMM protocol that allows users to instantly and cost-effectively swap stablecoins in Cro ecosystem and pegged assets and earn lucrative rewards with their help.
The protocol facilitates and reduces the cost of exchanging stablecoins by choosing the most effective route. In addition, users can support the Ferro crypto protocol and provide liquidity. Thus, they become liquidity providers and receive LP tokens reflecting their pool share. However, what is the advantage of Ferro over other Cronos DEXes?
- Lower fees. Traffic efficiency and low gas usage make the protocol cheaper than other DEXes.
- Greater use of Pools. "Highly correlated assets allow for better utilization, providing opportunities for users to benefit by deploying pools into other DeFi protocols." - Cryptocom.
Moreover, liquidity providers can stake their LP tokens and receive a portion of the trading fees generated by the pool. 60% of the reward in the form of $FER tokens can be withdrawn instantly, while 40% are converted to $xFER and sent to a one-month locking pool. In addition, users can choose a pool with a longer locking duration. Now, the Ferro protocol price is $0.02588.
5. Single Finance
Single Finance is an ambitious Cronos DeFi project that helps yield farmers increase income, reduce the risks of impermanent loss, and automate the entire process. Single Finance is a multi-chain platform that operates on Cronos, Fantom, and other EVM-compatible chains. The platform uses bots to monitor the market situation effectively and execute pre-configured strategies. "Single Finance is the first DeFi protocol offering USD-based capital-protecting strategies for leveraged yield farmers." - SingleFinance.
Moreover, the platform uses automated bots whose task is to protect users from liquidation. Bots automatically execute stop-loss orders, allowing users to save up to 85% of their capital. Also, the Single Finance crypto project presents the world’s first LP Time Machine. It provides real return performance data, including trading fees, DEX yields (yield farming), and price effects to help users pick their winning pairs.
Cronos is a Web3, DeFi, and NFT massively scalable project that continues to grow and evolve. It is famous for its energy efficiency and low-cost transactions and can also interact with the Ethereum and Cosmos ecosystems. Now, Cronos is a platform for top DeFi projects that offer new innovative solutions. However, when investing in an asset or DeFi Cronos project, do your own research to make the best possible judgment.
Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.