Centralization vs. Decentralization
Both Crypto.com and Binance are centralized entities operating in the cryptocurrency space. Most people in the cryptocurrency community will tell you that cryptocurrencies are supposed to be fundamentally decentralized. However, exchanges have always represented a necessary centralized aspect of the decentralized crypto community. So do decentralized exchanges offer competing services to the kinds of services that Crypto.com and Binance offer? Not really, decentralized exchanges tend to suffer from high fees, and slow transaction times. Centralized exchanges blow DEX’s out of the water in terms of performance. So what exactly is the appeal of DEX’s?
Decentralized exchanges offer a rich environment wherein multiple parties can interact with one another for mutual benefit. The main use case for decentralized exchanges is for traders who don’t wish to expose themselves to counterparty risk. But there simply is not enough liquidity on DEX’s to make it worth it for high volume traders. That’s where this recent trend of liquidity mining and yield farming comes in. Users may lend their tokens to the DEX in return for a cut of the fees charged by the service. This adds substantial liquidity to the platform, reducing slippage and other undesirable aspects of using a DEX. In return, those who lend their tokens earn passive income. This seems like a win, win, win for the stakers, the traders, and the DeFi community at large.
Liquidity Mine Your CRO
You may now provide a variety of ERC20 tokens to the Crypto.com including wETH, and DAI, and CRO. Crypto.com is incentivizing you to stake your tokens to their DeFi platform with additional bonuses paid out in CRO. You may earn as much as a 20x multiplier on your earning from providing liquidity by staking scaling amounts of CRO tokens. There is a massive downside to this all, in order to earn this multiplier on your rewards, you must stake your CRO tokens for a minimum of 1 year, and a maximum of 4 years. For most people, this is too much to handle. The most popular staking tier seems to be the option to stake 1000 CRO for 4 years for a 2x multiplier on the liquidity provided to the platform.
If the DeFi trend is to continue for years to come, this may be a great opportunity for individuals on the Crypto.com platform to get into liquidity mining. As always, Crypto.com has crafted a slique interface that simplifies most of the complex aspects of liquidity mining. They’ve even added a calculator to their platform that allows users to estimate the amount of rewards gained from their contributions. In any case, the Crypto.com DeFi integration adds a lot of value to the CRO token and the Crypto.com ecosystem.