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Binance CEO: “New project, high risk,” Lists DeFi Newcomer CREAM

Binance CEO “New project, high risk,” Lists DeFi Newcomer CREAM

Leading crypto exchange Binance announced the listing of another DeFi token in its platform. Cream Finance (CREAM) is now available for trading, being openly welcomed by Binance CEO Changpeng Zhao (CZ) himself as a “new project, low cap, HIGH RISK.”

DeFi’s best performers such as Chainlink (LINK), Compound (COMP), yearn.finance (YFI), Aave (LEND), and MakerDAO (MKR) are already part of Binance’s DeFi index.

Binance Lists Cream Finance (CREAM)

Binance has listed CREAM and allowed users to start trading the CREAM/BNB and CREAM/BUSD trading pairs yesterday, September 16, at 1:00 PM (UTC). In preparation for trading, users deposited their CREAM before the markets opened.

Launched in August 2020, Cream Finance is a DeFi ecosystem forked from Compound Finance. Similar to its benchmark, it also claims to operate a permissionless and open-source protocol for lending, exchange, payment, and asset tokenization services.

CREAM Dashboard
CREAM Dashboard

What seems like another food-related DeFi token like SushiSwap or HotdogSwap, CREAM actually stands for Crypto Rules Everything Around Me. Users can supply and borrow tokens like ETH and stablecoin USDC by connecting to its current beta app. Here, the dashboard shows which tokens are supplied and borrowed.

At the time of writing, CREAM has a total value locked (TVL) of $294 million, according to DeFiPulse. Out of this, ETH is the most locked asset, having a worth of around $785,000.

CREAM Launches on Binance Smart Chain

Established as well on the Ethereum blockchain, CREAM has taken advantage of smart contracts running on Ethereum Virtual Machines (EVM). This also proves how this project has one of the key components of DeFi protocols — composability.

Since September 1, CREAM has switched to the Binance Smart Chain (BSC) to take advantage of better transaction throughput and cost-efficient services available through Binance Chain’s parallel blockchain. Here, CREAM holders can be offered with better liquidity as other cryptocurrencies can be accessed through BSC.

More recently, CEO CZ has sent an invitation for other Ethereum-based DeFi projects to migrate to its recently-launched Smart Chain to reduce Ethereum’s load and gas fees.

In support of this, Messari Research Analyst Ryan Watkins said that CREAM’s launching in BSC demonstrates how powerful yield farming incentives are.

Cream Finance Shows DeFi Risks

After Binance listed CREAM, a mix of reactions were received by the leading crypto exchange. Some questioned the listing process within Binance as CEO CZ mentioned that it is indeed a high risk project. Yet, “everything in crypto is high risk,” he stated.

Indeed, Binance is not alone in supporting DeFi tokens and expanding their exposure within the crypto space. Other crypto exchanges like Huobi Global and OKEx have also unlocked DeFi’s potential. In fact, the DeFi market has skyrocketed exponentially during the month of August.

Truth be told, DeFi newcomers like CREAM are not immune to risks, particularly on their technicalities. Yesterday, Cream Finance’s staking mechanism was stopped for maintenance due to an input error in its smart contracts.

There has not been any published audit reports yet for CREAM’s smart contracts. This is important to determine the vulnerabilities on the protocol and apparently address it as soon as possible to avoid any security risks. Moreover, it can establish the project’s credibility to the users.

Previously, UniSwap fork SushiSwap’s security flaws have been revealed by cybersecurity analysts while DeFi lending platform bZx successfully reclaimed its $8 million hacked fund caused by a faulty code in its smart contract.

Read More: Get the latest news about Binance exclusively on CoinQuora’s Binance News section.

An aspiring journalist who spills her ideas in cryptocurrency and blockchain-related matters. With her background in Communication and Journalism, she is more inclined to write about reality than fiction.