The latest decentralized finance (DeFi) platform to take advantage of scaling its lending and borrowing protocol to Layer 2 (L2) is Cream Finance.
The DeFi lending protocol made the announcement on June 30, stating that the integration with Polygon means faster transactions, lower gas fees, and access to different markets for its users.
The blog post added that at launch, users will be able to supply and borrow tokens on the following markets: USDC, USDT, DAI, WMATIC, WETH, WBTC, LINK, SUSHI, CRV, and QUICK.
Liquidity mining incentives will also be part of the Polygon launch, with further details coming soon, it added. All assets will be covered by Chainlink oracles and collateral factors will range from 45% to 85%.
Polygon integrations expand
Cream is part of the Yearn Finance ecosystem following a merger in November 2020. It provides DeFi lending for individuals, institutions, and other protocols. Its money markets are focused on “longtail assets,” increasing capital efficiency in crypto markets.
Cream Finance has become the latest in a long list of DeFi protocols launching platforms on the Layer 2 aggregator Polygon (formerly known as Matic).
In late May, MATIC prices surged after Mark Cuban announced the addition of Polygon to his portfolio. Cream now joins the ranks of Curve Finance, Aave, mStable, RenVM, Kyber Network, and 0x in recent Polygon deployments.
The drive to embrace L2 has come about from a surge in Ethereum gas fees this year. At the time of writing, they had calmed down somewhat with the average transaction fee hovering around $3.80 according to BitInfoCharts. Average gas fees surged to over $70 in mid-May.
In March, Cream Finance suffered a Domain Name Service attack which knocked its servers offline temporarily. At the time, the protocol was highly critical of hosting company GoDaddy which managed the compromised account.
CREAM and MATIC token updates
Cream Finance’s native CREAM token has made a marginal 2% gain on the day to trade at $157 according to CoinGecko. Like many of its DeFi brethren, the token is still way down from its Feb. 4 all-time high of $374.
DappRadar is currently reporting a total value locked of $680 million for the protocol.
Polygon’s MATIC token has lost 1.3% on the day to trade at $1.13 at the time of writing. It’s also down 57% from its peak price of $2.62 which came on May 18.