DeFi Project CREAM Reinventing with Zero Collateral Protocol-to-Protocol Lending Platform

The project aims to become a “liquidity backstop for the entire DeFi ecosystem.”


The peer to peer lending and exchange platform on Ethereum and Binance Smart Chain, Cream has released its ambitious CREAM v2 plan.

The summer fork of Compound Finance, Cream is now reinventing itself by winding down Cream Swap and CreamY Swap and focusing on its lending protocol.

The project aims to become a bank for banks — the Iron bank. As Cream puts it,

“If the DeFi ecosystem were Game of Thrones’ mythical Westeros, CREAM v2’s Iron Bank would be the king maker for other protocols.”

Sharing the “The Road to Cream v2” with the community, the team wrote its mega plan to be the “liquidity backstop for the entire DeFi ecosystem.” The team believes that DeFi will absorb all global financial markets one day, and P2P lending will be a multi-trillion dollar market.

As such, introducing zero collateral protocol-to-protocol lending platform with Alpha Homora V2 and Yearn.Finance as launch partners.

Sharing Capital

Peer-to-peer lending solutions are overcollateralized. In protocol-to-protocol loans, credit systems will be in the works where a protocol can directly borrow funds from Cream v2 once it is whitelisted and a credit limit is set.

wETH, DAI, and y3Crv are currently the only available pool of assets to borrow from, with USDT, USDC, sUSD, mUSD, DUSD, LINK, YFI, SNX, and WBTC coming soon.

CREAM v2 will remain limited to blue chip assets, while new assets will be listed on CREAM.Finance for collateralized peer-to-peer lending reads the roadmap.

This system will enable Yearn yVaults to develop leveraged yield-farming strategies and cross-asset strategies, while Yearn will be launching an abstraction to leverage every yearn strategy via this bank. YFI creator Andre Cronje said,

“This year I hope to see a strong focus on capital efficiency, not only in ycosystem — Iron Bank for Yearn & Alpha, Sil, and Deriswap for Sushi, Agnostic Cover, Delegated Aave Credit. The ability to be able to share capital, not in a fractional reserve sense, is unique to defi.”

As for Alpha Homora V2, it will borrow liquidity from CREAM V2 and offer it as leverage to its users.

“The Iron Bank is essentially the first institutional funder within DeFi,” noted one DeFi enthusiast and advisor to COVER Protocol and BoringDAO, who expects this to help Cream’s total borrow volume to “increase significantly” and create another opportunity for other Yearn ecosystem projects to lean on.

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