What Is Cryptochrome (CHM)?
Cryptochrome continue to watch the growth of exciting new financial primitives, they’re beginning to witness an ever-growing trend of users being able to share in the upside of a protocol’s growth. Whether it’s something as simple as lending cryptocurrencies on Compound to something more complex like participating in liquidation auctions on Maker, it’s evident that DeFi is unlocking a suite of new and exciting passive income opportunities in yield farming and non-custodial staking.
Cryptochrome Storage Key Points
|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|
|Official Project Website||Click Here To Visit Project Website|
The main takeaway for those newer tokens is that small market caps can drive a quick bull run if you have a community willing to support you. It is one of the best way to gather interest around your community making your early fans instant returns incentivizes them to become your best supporters. Cryptochrome saw the launch of JAMM – a personal token by Brian Flynn that aims to offer exclusive benefits to his newsletter subscribers along with JAMM merch and early product access.
Before that, a group called Cryptochrome launched a token – KARMA – which requires users to hold 200 tokens to enter the chat group and gain access to private meetings with early-stage projects showcasing their development. This notion of token permission ed chat groups then made its way to DeFi with the launch of the DeFi Nation Signal DAO and their DSD token. If the trend wasn’t clear enough, personal & community tokens are here to stay and they’ve only just scratched the surface of what’s possible in the coming time.
How it works?
Cryptochrome with other liquidity mining programs, participants simply need to provide liquidity to this CHM/ETH Unsiwap V2 pool. Given the early nature of this experiment, LPs will need to remain in the pool for the entirety of the month period to be eligible for rewards. $CHM tokens from the ecosystem fund to those who provide liquidity on Uniswap V2. The more liquidity you provide, and for longer, the greater share of the CHM pool you receive. CHM/ETH is main liquidity pool for ecosystem. Much more tokens and digital assets to come to the platform with their pair and rewards for community.
Guaranteed liquidity at every price level
Behind the scenes, the “liquidity pool” is just an automated market maker in the form of a smart contract that automatically matches traders’ buy and sell orders based on predefined parameters. Traders do not need to be matched directly with other traders, so as long as investors have deposited assets into the pool, liquidity is constant.
This system works fairly well when there are enough buyers and sellers in the market, but there are a few unavoidable issues tokens that lack liquidity due to low volume or interest not only become difficult to buy and sell but are also susceptible to unpredictable price swings caused by large individual transactions. Cryptochrome Consequently, tokens that are characterized by high price volatility and inefficient conversions are unlikely to be adopted.
Automated pricing enables passive market making
On order book exchanges, market makers need to constantly adjust their bids and asks as asset prices move. Unsurprisingly, market makers tend to be professionals who have the time and expertise to actively manage their market-making strategies. Liquidity pools don’t need to aggregate information across exchanges to determine the price of assets. Liquidity providers simply deposit their assets into the pool and the smart contract takes care of the pricing.
Anyone can become a liquidity provider and earn
Liquidity pools require no listing fees, KYC, or other barriers characteristic of centralized exchanges. Anyone can invest in an existing liquidity pool or create a new exchange pair
for any token, at any time. Cryptochrome an investor wants to supply liquidity into a pool, they deposit the equivalent value of both assets. Supplying $100 of liquidity into an ETH/DAI pool requires a deposit of $100 worth of ETH and $100 DAI, so $200 in total.
In return, the investor receives liquidity pool tokens which represent their proportional share of the pool and allows them to withdraw that share at any time. When someone places a trade, trading fees are deducted from the asset that the trader sends to the exchange contract and added to the liquidity pool after the trade. For example, Uniswap charges a 0.3% trade fee. If your $100 ETH/DAI contribution makes up 0.007% of the pool, you’ll get 0.007% of that 0.3% trading fee.