This was emailed to me, I did not write this
The Crossfin CRP team wrote this, pasting it here to share
Introducing Cross Finance yield farming platform
Cross Finance is in full swing. Starting out over 6 months ago, we would never dare to expect so many interesting things coming on our DeFi journey. But now, they came, and are coming more. We rolled our Cross Finance Exchange as an AMM on the newly-born DeFi network Binance Smart Chain with a vision of cross-chain decentralized finance in early October. After over 2 weeks, Cross Finance became the second-best DeFi dapp on Binance Smart Chain according to DappRadar. Along with that, our presale hasd closed with success. 20M tokens has been sold by both retail & institutional investors. To take a step forward, we are excited to launch the new product in our coming DeFi product suite. This is the Cross Finance yield farming program.
Lots of folks might think that we are just another normal farming platform about to be launched and wonder what are the differences we have over our fellows. Well, at Cross Finance, we don’t try to say big things; we just try to fix shortcoming of nearly-big things, then will become a big thing. Basically, the yield farming of Cross Finance is built to solve 4 following problems that many users might be encountering or other platforms might be running into.
- Yield-farming native tokens are highly-inflated, thus affecting their price performances & farmers’ profit.
- Users need to store at least 2 tokens to join the farming. Single-token holders don’t stand a chance.
- Referral marketing is not leveraged to grow user-based
- More profit sources for yield farmers.
Cross Finance yield farming platform solves these problems by following innovations
- Single-token farming mechanism
- Native token recycling mechanism
- Referral reward fund extracted from annual inflated amount
- New trading fee distribution mechanism
Meet Dollar Yield stablecoin (USDY): The first by-community stablecoin issued on Binance Smart Chain
To serve the operation of Cross Finance, we have launched the USD Yield (USDY) as a by-community stablecoin for the Binance Smart Chain network. In the short term, USDY will be used within Cross Finance as the liquidating means of payment for various financial services on the ecosystem such as AMM, yield farming, P2P lending, derivative platform, etc. In the long term, as the collateral funds backing USDY become enormous, decentralized, and proven, the stablecoin can be used widely in the whole Binance Smart Chain network. Cross Finance is willing to be the first backer of USDY but won’t be the one controlling the stablecoin. In contrast, the Cross Finance community gradually will, by joining the Cross Finance yield farming & other community-governed platforms.
To mint first Dollar Yield (USDY) coins, Cross Finance will use 30% of the total fund we raised successfully on the presale as the backed assets. It means that at the moment, USDY has the total collateral asset backing value of ……
Next Dollar Yield (USDY) coins will be minted by Cross Finance yield farming users based on the principle that, the more value locked in the platform, the more USDY is minted. By that way, USDY is emitted along with the growth of the Cross Finance yield farming platform and each USDY coins being released always goes along the an amount of trusted assets backing at the same value. We’d recommend you to read more about USDY minting mechanism below.
The contract address for the USDY token on Binance Smart Chain is: ……………………
Essential properties of USDY:
- Pegged 1:1 to USD, 1 USDY = 1 USD
- 1:1 backed by USD, BNB
- Backed initially by 30% of the total fund Cross Finance has raised successfully on the presale
- Users can mint USDY by locking up CRP in smart contract through participating in Cross Finance platform
- The supply grows parallely with total value locked in Cross Finance grows
- 100% open-source, on-chain, and permissionless
On the Cross Finance yield farming platform v1, there are 3 farming pools, CRP, BNB, and USDY pool. So, you don’t need to have 2 tokens in your wallet to join the farming program and add liquidity to 2 sides of the pairs. We call our farming program as single-token farming.
Funds added into farming pools will be added into 2 liquidity pools of CRP <> USDY trading pair on Cross Finance Exchange. Below is the mechanism of splitting fund,
If you add liquidity into the CRP farming pool, half of your CRP stays the same and half is locked in a smart contract to mint an amount of stablecoin USDY, with the value the same as the USD-value of ½ your CRP bag. Your original CRP bag now is distributed into 2 same-value CRP & USDY portions and added into 2 liquidity pools of CRP <> USDY pair. When claiming funds & rewards, you will receive your original funds as 2 CRP & USDY portions and rewards in the form of CRP.
If you add liquidity into the BNB farming pool, half of your BNB is used to buy CRP at the market price and half is locked in a smart contract to mint an amount of stablecoin USDY, with the value the same as the USD-value of ½ your BNB bag. Your original BNB bag now is distributed into 2 same-value CRP & USDY portions and added into 2 liquidity pools of CRP <> USDY pair. When claiming funds & rewards, you will receive your original funds as 2 CRP & USDY portions and rewards in the form of CRP.
If you add liquidity into the USDY farming pool, half of your USDY stays the same and half is used to buy CRP at the market price. Your original USDY bag now is distributed into 2 same-value CRP & USDY and added into 2 liquidity pools of CRP <> USDY pair. When claiming funds & rewards, you will receive your original funds as 2 CRP & USDY portions and rewards in the form of CRP.
By representing your funds in 2 currencies, the single-token farming mechanism captures the USD-value of your bag at the moment you participate in the farming. Over time, by being added into liquidity of the asset pair, 2 new currency bags reserve the original USD-value, thus ensuring that you would never suffer any financial losses no matter how much CRP and BNB price would fluctuate.
Native token recycling
One of problems of current yield farming platforms is that there hasn’t been an effective methodology to control the amount of native token emitted as farming rewards. The more liquidity added into pools, the more native tokens released.
Let’s take SushiSwap as an example. The 2-month-old AMM & yield farming platform has the ratio Circulating Supply over Max Supply as 99.9M/130.4M, or 77%. It means that just after nearly 2 months from launching, 77% of the total SUSHI created has been mined. Litecoin, an active 7-year-old coin currently sitting at #10 in the list of highest-cap cryptocurrencies has reached the same result at the same ratio. So, it’s right to say that the majority of yield-farming tokens are highly-inflated currencies because more tokens will be released along with the development of the platforms. Native token-based farming pools, for example SUSHI-USDT pool on SushiSwap, seems to be no help in slowing down the emission rate because liquidity providers or farmers can withdraw their liquidity added anytime. All in all, the whole scene would harmfully affect the price of yield-farming tokens in the long run and price charts of SUSHI, SAKE, CRP, and many more have been the evidence.
Cross Finance’s team has been well-thought-out about this and came up with a solution named ‘CRP recycling mechanism’. Basically, it is a methodology to ‘recycle’ CRP added into liquidity pools. The more CRP added into pools, the more CRP being recycled and added back into current supply. At the end of the day, the emission speed would be slowed down as merely already-existing recycled CRP, not newly-emitted CRP, is used.
So, how would recycling mechanisms work? The work is put on the shoulders of farmers of CRP pool. Whenever a farmer puts funds into the CRP farming pool, half of his/her bag is locked in a smart contract. When the farmer claims funds & rewards, the locked CRP is released and added back into current supply for other LPs & farmers mine & farm. As the total value locked in the CRP farming pool increases, more and more CRP will be recycled, thus decreasing the amount of new CRP mined. Recycled CRP would also help decrease the amount of CRP inflated every year since the 5% inflated CRP amount is calculated on the basis of the end-year snapshotted CRP supply.
To make it easy to understand, let’s consider 2 scenarios.
Scenario 1: Recycling CRP is not applied. The start-year CRP supply is 10M. In the year, there are 5M CRP added into the farming pool. At 100% APY, there would be 5M CRP mined accordingly. So, the end-year CRP supply is 15M. The 5% inflated CRP amount is 0.75M, so the start-year CRP supply of the next year would be 15.75M.
Scenario 2: Recycling CRP is applied. The start-year CRP supply is 10M and there are also 5M CRP added into the farming pool in the year. As this amount of CRP in the pool, there are 2.5M CRP is recycled in the whole year. At 100% APY, there would be 5M CRP used accordingly for rewarding. To fill in this rewarding bag, 2.5M recycled CRP is reused and 2.5M CRP is newly-mined, which turn the end-year CRP supply as 12.5M. The 5% inflated CRP amount is 0.625M, so the start-year CRP supply of the next year would be 13.125M. Lowering the amount of CRP increased would help price performance of the token in both short-term and long-term.
(Read more about the updated Token Economics here)
Farmers’ profit: farming reward & trading fee profit
We give farmers of Cross Finance yield farming a privilege over their peers joining other platforms. Besides farming reward in CRP, which is common among all yield farming platforms, Cross Finance farmers can also receive reward from trading fee profit of all Cross Finance Exchange.
In short, farmers’ profit comes from 2 sources
Source 1: Farming reward: It comes from newly-mined CRP or recycled CRP and its amount is based on the APY of each farming pool. Farmers can claim farming rewards anytime they want.
Source 2: .Trading fee profit: As you all know, transaction fees on Cross Finance Exchange are set as 0.3%. On all pairs on the exchange, this transaction fees are distributed as
- 40% goes to Liquidity Provider of the pairs
- 15% goes to Cross Finance’s team
- 45% goes to Farmers of all farming pools
(Read more about the updated Token Economics here)
Notice that trading fee profit is distributed in the form of CRP but doesn’t come from newly-mined CRP or recycled CRP as farming reward. It comes from the current supply as 0.3% of total trading volume is all used to buy CRP at the market price at the distributing time.
With this trading fee distribution, being farmers can bring much more benefit compared to being liquidity providers because liquidity providers only earn fee profit on the pairs they provide liquidity to while farmers earn profit on all pairs no matter which farming pools they add liquidity to.
Referral reward fund
To accelerate the growth of the yield farming, we’ve applied the one-of-the-kind referral program for Cross Finance farming. We are proud to say that this is the first time in history a yield farming platform leverages referral marketing to obtain users.
In the basic meaning, any users of Cross Finance yield farming platform can have a referral link to send to their friends. When Bob, friend of Annie, joins Cross Finance farming under Annie’s referral link, Annie can receive referral rewards. The referral reward fund amount and accounts for 20% of the annual inflated amount.
So, to be more specific, the 5% annual inflated amount will be distributed as:
- 3% goes to the current supply and is used for mining (liquidity mining program) and farming (farming program)
- 1% goes to the referral reward fund. The fund is set on the first day of the year and will be distributed constantly over the year.
- 1% goes to Cross Finance’s team.
(Read more about the updated Token Economics here)
Half of CRP added into
CRP pools is recycled and
added back to the supply
This information was sent to me in another email from EZHIKOV VLADISLAV of the Crossfin CRP team
the yield farming platform is the main product that we are focusing on & trying our best to grow the user-based.
Some highlights about Cross Finance farming, also our innovations, that I think they are worthy to be mentioned:
1. Users’ original fund will always reserve its value
2. Users can earn the APY of 126% or 0.4% per day for all CRP, BNB, USDY pool, a relatively high reward rate. The thing is other farming platforms can offer high APY only to pools containing the native token of the platforms (for example BakerySwap only offers high APYs to BAKE-BUSD, BAKE-BNB pools). The mechanism of Cross Finance farming allows users to earn 126% APY of 0.4%/day even on their BNB and stablecoin USDY, which is the thing other farming platforms can’t offer .
3. According to Cross Finance farming mechanism, the more BNB & USDY is put into farming pools, the more price of CRP increases. And since CRP is the rewarding token, the increasing of CRP price brings more profit for farmers.
4. We leverage referral marketing to grow the user-based. 1% of the annual inflated amount is saved as the referral rewarding fund. You can share your referral link right in the video, I think it’s a cool idea benefiting both you and our platform.
5. Farmers can earn more profit. They have 2 profit sources, 1st is farming reward derive from the APY and 2nd is the trading fee profit on Cross Finance Exchange. With other farming platforms, farmers only earn farming rewards.
Other highlights can be found in the explaining piece. For example, with Cross Finance, farmers can only use 1 currency to join farming (single-token farming); or we have a mechanism to get CRP price-stable (token recycling), thus ensuring the APY.
Crossfin CRP crypto coin logo png