Crafting Finance is the next-generation Polkadot-based ecosystem of decentralized finance products that comprises swap, lending, borrowing, and synthetic asset features.
It is combining the best of its features to create a bonded system and redefining how DeFi works.
Developed by the world’s leading blockchain developers, cryptographers, research scientists, and experts from finance backgrounds, Crafting Finance aggregates core decentralized financial products in one place, like no other project in the industry.
The core features of Crafting Finance include Forge, Kingsman, and various synthetic assets (Raft, RaftStable, UnivRaft, BondRaft). Forge supports a variety of collaterals to generate various synthetic assets and even user-defined assets. Kingsman, the DEX using sharing debt pool (SDP) trading mode, does not require counterparties, which solves the problem of DEX trading depth.
This proprietary protocol’s implementation will bring significant and lasting change to the trading of financial products and other DeFi use cases which include the following major innovations:
- The platform supports the minting of almost all kinds of synthetic assets, such as Bond, stablecoins, customized assets, etc. directly.
- After users mint synthetic assets, they can choose whether to join the shared debt pool (SDP). This is the most important innovation Crafting Finance will bring to synthetic assets. Users who do not want to take the risk of “crafting loss” which is a loss that may occur holding synthetic assets, can choose not to join the SDP to avoid the risk. More interesting is that users can still trade in Kingsman even if they do not join the SDP.
- Multiple debt pools are natively supported. In the future, the debt pool can be split based on various methods (when the liquidity is enough, it can be completed by DAO).
The governance token of Crafting is CRF. All CRF holders can participate in community governance. There are various ways to support the long term value of CRF:
- All unallocated and future tokens to be issued annually will be used as rewards depending on the types of users.
- The fees collected from trading in Kingsman will be converted to CRF using auction or DEX. Exactly 40% of the fees will be distributed as rewards to users who meet the specified collateralization ratio in the entire system, and the reward ratio is determined by the debt ratio. Another 40% will be burned. The remaining 20% will be reserved for the system.
- Users who choose not to join the SDP will pay interest on their synthetic assets. Exactly 80% of the interest will be converted to CRF and the converted CRF will be burned. The remaining 20% will be reserved for the system.
To date, Crafting Finance is backed by industry leading institutional investors including Signum Capital, CMS Holdings, NGC Ventures, Continue Capital, LD Capital, DFG Capital, Waterdrip Capital, Longhash Ventures, Northbund Capital, PAKA Capital, SNZ Holdings, Spark Digital Capital, Titans Capital, AU21 Capital, and CryptoDiffer.
The team revealed that the testnet is going to be launched in the 4th Quarter of 2021.
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