Cream Finance (founded in 2012) is a decentralized cryptocurrency designed to restructure the financial system on smart contracts. The name “Cream Finance” is an homage to the Wu-Tang Clan and their classic track "C.R.E.A.M"^[2].

Overview

Cream Finance is an open financial system built on smart contracts.  It uses advanced algorithms and machine learning to improve personal loan processes in various locations around the world and also aims to become a one-click loan provider to consumers globally. The name “Cream Finance” is an homage to the Wu-Tang Clan and their classic track "C.R.E.A.M. (Cash Rules Everything Around Me)".

On September 11, 2020, Cream Finance went live on Binance Smart Chain. At launch, the following tokens are supported: BNB, BUSD, BTC, ETH, XRP, BCH, and LTC.

$Cream Token

Cream Token is Cream Finance utility and governance token. The platform token facilitates platform operation, utility capture and value realization. Cream Finance started with no CREAM premise.

The distribution plan for the initial 9,000,000 CREAM tokens is as follows:

• 10%, 900,000 — Team, vesting over 2 years, 6-month cliff.
• 10%, 900,000 — Seed, vesting over 2 years, 6-month cliff.
• 20%, 1,800,000 — Liquidity Provider Incentive .
• 60%, 5,400,000 — Governance Allocation.

25% of the team allocation, 225,000 CREAM, has been allocated to Cream's technical and security advisor Compound Finance, distributed monthly, 37,500 per month. These tokens are legally locked. They will not enter circulation until February 8th, 2021.

The team moved 8,325,000, 92.5% of CREAM tokens into the multisig wallet.

Multisig Wallet

The multisig wallet that the team set upholds 92.5% of the CREAM tokens (as of August 2020) and controls most of the smart contracts on Cream. The set of key holders are:

• Robert Leshner, CEO, Compound Finance
• Peter Pan, Summoner, MetaCartel, MetaCartel Ventures
• Darius Sit, Founder, CIO, QCP Capital
• Andrew Kang, Mechanism Capital
• Leo Cheng, Summoner, Machi X DAO
• Wilson Huang, Founder, Steaker.com
• Jeremy Yang, Technical Lead, Cream Finance
• Bun Hsu, Senior Engineer, Cream Finance
• Stanley Ding, Senior Engineer, Cream Finance

CREAM Tokens Burn

On September 20, 2020, the team executed the CREAM burn of 67.5% or 6,075,000 CREAM tokens. After this burn, the total available supply has reduced from 9,000,000 to 2,925,000 tokens, with the current circulating supply at ~400,000^[8].

creamY

creamY is a dynamically updatable AMM built off of the concepts from Uniswap, Balancer, Curve, and Blackholeswap by the Cream Finance team. creamY v1 is focused on low slippage and fees for generally stable assets. creamY v2 is expanded to allow for volatile assets.

Curve and Blackholeswap introduced the concept of low slippage trades on assets that tend towards 1. Some examples include Curve’s y pool, which allows DAI, USDT, USDC, and TUSD to be traded at very low cost and very high efficiency.

When a new asset is launched, such as BUSD, a new pool needs to be created, this segments market liquidity. As an example, the Curve BUSD pool, allows DAI, USDT, USDC, and BUSD, however, this fragments the liquidity of DAI, USDT, and USDC between the two pools. As more assets and markets are added, liquidity becomes more fragmented. Balancer introduced the concept of updatable pools, this allows the addition or removal of an asset from the pool, enabling a more dynamic approach.

creamY combines these two core approaches to create a dynamically updateable AMM that consolidates liquidity while providing the best qualities of the AMMs it borrows from. At launch, creamY will support three exchanges:

• Stablecoins (cryUSD): USDT, USDC, TUSD, BUSD, yCRV, yyCRV, yUSDT, yUSDC, yTUSD, cUSDT, cUSDC, crUSDT, crUSDC, crBUSD.
• BTC (cryBTC): wBTC/renBTC/tBTC/crRENBTC/cWBTC/ycrvRenWSBTC .
• ETH (cryETH): WETH/yETH/crETH/cETH.

C.R.E.A.M. Swap

C.R.E.A.M. Swap is a fork of Balancer created by the Cream Finance team, with a Uniswap-like frontend. Users who create and deposit into liquidity pools on Swap received a proof token named CRPT (Cream Pool Token), similar to how Balancer has BPT and Uniswap has UNI for their liquidity providers. At the start, all exchange fees were set to 0.25%. Liquidity providers received 0.2%, while the other 0.05% went to the CREAM network.

Updates on Cream

Token Exploits

The C.R.E.A.M. Finance V1 Ethereum markets were exploited on October 27th, 2021 at block number #13499798, with a total impact of $ 130 million USD. It was a loss the community suffered from. The DeFi protocol distributed a total of 1,453,415 CREAM tokens to impacted users.

We are utilizing remaining CREAM tokens within the treasury, and removing the project team’s remaining CREAM token allocation. There will be no further CREAM allocations to the team.^[1]

Compensation

Impacted users had a portal opened to them where they can claim their CREAM tokens from its site^[3]. The claiming of CREAM tokens would be till the 12th of November 2022^[4].
The CREAM allocation for each account is based on their net position (Supply — Borrow) at the time the V1 markets were frozen (block number #13535273). This position is priced at the block before the exploit and the user will receive a pro-rata amount of CREAM tokens based on their loss relative to the total impact.

Iron bank Token Launch

Cream Finance ecosystem dived into off 2022, launching the Iron Bank (IB) token. The token was deployed to expand protocol-to-protocol loan offering as well as leaning further into synthetic assets with the Iron Bank Fixed Forex tokens and ecosystem.

We are excited to grow together with our token holders and supporters, and we anticipate fee distributions for veIB holders will begin in February 2022.^[6]

Tokenomics

The total IB token supply will start with a total supply of 7.3 million tokens. The IB tokens is fractionated into:

• Initial liquidity
• Protocol Owned Liquidity
• Stability & Safety
• AMM Incentives
• Initial Distribution
• Contributors.

The veIB mechanism is based on Andre Cronje’s ve(3,3) token model. veIB will be deployed on Fantom Opera, which will significantly reduce the gas cost required to participate in the veIB system^[7].^[5]

Collaborations

Method Man

November 20, 2020, Cream Finance tweeted a video where American rapper Method Man rapped about Ethereum's momentum.