What Is Cream Finance (CREAM)?
Throughout this assessment, Cream Finance sought to answer various questions about the security of CREAM. Ice CREAM turns CREAM into a productive asset. It will have the same three main use cases as CRV – voting, staking, and boosting. For the early supporters of cream Finance who locked their CREAM in the long-term staking program, these token holders should be entitled to governance alongside ice CREAM holders, but will not be eligible for emission boosts.
The fee distributor and the voting escrow are the final stops of ice Cream phase 1. The fee distributor stores all the reserves in yvCurve-IB and it handles the fee distribution among all the ice Cream stakers. The voting escrow (ice Cream) is where users stake their CREAM tokens. Users could claim the rewards here.
Each asset supported by the Cream Finance Protocol is integrated through a crToken contract, which is an EIP-20 compliant representation of balances supplied to the protocol. By minting crTokens, users (1) earn interest through the crToken’s exchange rate, which increases in value relative to the underlying asset, and (2) gain the ability to use crTokens as collateral.
Cream Finance Storage Key Points
| Coin Basic | Information |
|---|---|
| Coin Name | Cream Finance |
| Short Name | CREAM |
| Circulating Supply | 616,378.00 CREAM |
| Total Supply | 2,925,000 |
| Source Code | Click Here To View Source Code |
| Explorers | Click Here To View Explorers |
| Twitter Page | Click Here To Visit Twitter Group |
| Whitepaper | Click Here To View |
| Support | 24/7 |
| Official Project Website | Click Here To Visit Project Website |
Collateral Factor & Reserve Factor
The reserve factor is the percentage of Fee paid to Cream Finance protocol. If the reserve factor is 10, then that would imply that 10% of the interest paid on the asset is for CREAM. In the other hand, the collateral factor is the maximum you can borrow on a particular asset.Example. The collateral factor for ETH is 75%, if the price of ETH is considered as $1000, the max you will be able to borrow in other assets is worth $750.
The redeem underlying function converts crTokens into a specified quantity of the underlying asset, and returns them to the user. The amount of crTokens redeemed is equal to the quantity of underlying tokens received, divided by the current Exchange Rate. The amount redeemed must be less than the user’s Account Liquidity and the market’s available liquidity.
Lending Protocol
The lending protocol includes the comptroller, cToken markets, and cToken Admin. Every market will generate reserves. CTokenAdmin is a new contract that controls the cToken market. In addition to normal access control in cToken, it allows a specific reserve manager to extract reserves.
The redeem function converts a specified quantity of Cream Finance into the underlying asset, and returns them to the user. The amount of underlying tokens received is equal to the quantity of crTokens redeemed, multiplied by the current Exchange Rate. The amount redeemed must be less than the user’s Account Liquidity and the market’s available liquidity.
Reserve Manager
The reserve manager is the hub of reserves extraction. It snapshots all the cToken reserves and everyone could trigger the extraction (with a 1-day cooldown period). It should take a ratio (currently 50%) of reserves and send them to the burners. There are currently two types of Cream Finance. CErc20 and CEther.
Though both types expose the EIP-20 interface, CErc20 wraps an underlying ERC-20 asset, while CEther simply wraps Ether itself. As such, the core functions which involve transferring an asset into the protocol have slightly different interfaces depending on the type, each of which is shown below.
Burners
Burners are a group of token converters. They will burn tokens into USDC, and USDC burner will convert USDC into yvCurve-IB token. There is a special component called manual burner. It’s used for tokens whose onchain liquidity (Ethereum) is not deep enough. The manual burner is an EOA that will send the tokens to a centralized exchange or another network to convert manually. In the end, all tokens will be converted to yvCurve-IB token and send to the fee distributor.
The mint function transfers an asset into the protocol, which begins accumulating interest based on the current Supply Rate for the asset. The user receives a quantity of crTokens equal to the underlying tokens supplied, divided by the current Exchange Rate.