Crema Finance is a new type of protocol built on top of Solana that allows you to swap and trade your assets with ease, while earning more than ever before!
Crema opens up a whole new world of possibilities in how you can leverage your capital. In this guide, we will show you how to use Crema’s concentrated liquidity pools. We’ll also go over the Caffeine token, Crema staking, and liquidity farming.
Main Features of Crema Finance
Crema Finance provides a variety of benefits for its users, the most important of which is increased liquidity. With more liquidity available, traders can easily and quickly execute orders without experiencing the high price slippage typical of centralized exchanges. This not only saves time and money but also increases opportunities for arbitrage.
Some of the main benefits to using Crema are:
- Increased liquidity for traders
- Easier and faster order placement
- More opportunities for developers to integrate Crema’s services
- Better pricing for liquidity providers
- Increased returns for investors
NFT Liquidity Farming
You can gain access to the Crema Finance NFT by providing liquidity on the protocol. Once you have your CLMM NFT, you can stake it in Crema’s Farming Pool to receive CRM tokens as a reward.
Swapping on Crema protocol
Crema also provides a Swapping feature that offers users one of the best prices and good user experience in the ecosystem.
CLMM: Concentrated Liquidity Market Maker
The Crema CLMM is a specialization of the more general Automatic Market Maker (AMM) that allows for specific pricing ranges to be chosen by liquidity providers. This can provide them with greater freedom and flexibility in allocating their resources, but it also means they are taking on some risk if prices change unexpectedly outside those boundaries.
The example below shows how the CLMM can be used to provide a preferred price range in the USDC/USDT liquidity pool. (ignore my balance and focus on what is more important please).
A description of how this works is if you want to add some liquidity in the SOL-USDC liquidity pool, and you select a price ranging from $00 – $120, your provided liquidity can only be activated or accessed if these assets are trading within that range. With any deviation from the range, the liquidity will cease to be used.
Here are the top liquidity pools on the protocol where you can make deposits.
My Experience with Crema
I was a bit nervous when I first decided to try out Crema Finance. I had heard a lot of good things about the platform, but I wasn’t sure how it would work or if it was right for me. After signing up and getting started, however, I soon realized that Crema was exactly what I had been looking for.
The platform was easy to use and the liquidity was excellent. I was able to quickly execute trades without experiencing any slippage and I was able to get better prices for my orders.
CRM Token Allocation
Just like many protocols having a need of a token in their system, Crema Finance issued $CRM, a Solana SPL token created for the governance of the protocol and to disseminate the value it provides. The token has a total supply of 1,000,000,000 CRM. Below are some of the ways through with $CRM is utilized:
- Through Earnings: Half of the total revenue earned by the protocol goes to the holders of their token.
- Governance: With the platform token, holders can participate in decision-making processes and votes that directs the affairs of the protocol.
- Boosting: By locking some of their tokens in the protocol, users can leverage the staking to increase their NFT Liquidity farming reward.
The following shows the allocation of $CRM token:
- 15% is for the Treasury
- 50% is allocated for Liquidity mining
- 20% for Core Team and Advisors
- 10% for Private Round Investors
- 5% for IDO
Conclusion: should you use Crema Finance?
Overall, I was extremely satisfied with Crema and I would definitely recommend trying it out if you are keen on the Solana blockchain. If you’re looking for a powerful liquidity protocol that delivers a variety of benefits for its users, then Crema Finance is definitely worth considering.