September 11, 2020
v0.1.0

1. Introduction

Crypto.com was founded in 2016 on the simple belief that:
It’s a basic human right for everyone to control their money, data and identity.
We believe that blockchain and decentralized finance (DeFi) protocols built on top have the potential to empower millions to exercise this right.

Earlier this year we launched the Crypto.com DeFi Wallet, a non-custodial wallet and front-end interface offering our 3M+ users access to DeFi services. We are now launching our second DeFi product: DeFi Swap.

DeFi Swap is designed to be the best place to swap and farm DeFi coins at the best available rate, leveraging proven and audited protocols, while offering an outstanding incentive program powered by CRO.

Liquidity Providers (LPs) are generously incentivized for contributing to liquidity pools with Triple Yield through:

  • Swap-fee Sharing for LPs;
  • CRO DeFi Yield for LPs who also stake CRO;
  • Bonus LP Yield for LPs of selected pools.

2. Protocol Overview

Product Mechanism

DeFi Swap follows a constant product formula, where the product of the quantities of two tokens remain the same before and after a swap is performed. The price slippage depends on the ratio and quantity of tokens in the pool.

There are 5 main functions in the protocol:

1. Swap
Users can swap between any two supported tokens by paying a 0.3% swap fee;
a. Direct conversion if there is a liquidity pool for the exact same pair and it offers the best price;
b. Routes trades across several liquidity pools if otherwise (e.g. LINK to ETH and ETH to USDT for LINK to USDT conversion, if there is no liquidity pool for LINK to USDT or if a direct conversion from LINK to USDT incurs a higher price);

2. Pool
Each liquidity pool consists of reserves of two ERC-20 tokens, and issues an ERC-20 pool token as a proof of proportional ownership of the underlying reserves;
a. Pool token holders are entitled to receive the swap fee paid by users who swap through their liquidity pools;
i.  At launch, the entire amount of the swap fees (0.3% per swap) will be distributed to liquidity providers;
ii. Crypto.com reserves the option to later re-direct a maximum of 0.05% per swap to fund the ongoing R&D of the protocol.
b. The swap fees will first go into the reserves of the respective liquidity pools. Users will receive their proportionate share when they return the pool token to redeem their share of reserves;
c. LPs are subject to impermanent loss should the prices of the tokens diverge from their original prices; they are suggested to take this into consideration, in comparison with expected share of fees and yield, before making a decision to contribute to a liquidity pool;

3. Boost
LPs can increase, claim and view their CRO DeFi Yield and Bonus LP Yield;
a. Stake: Allow users to stake CROs to increase their CRO DeFi Yield. There is a minimum amount of 1,000 CRO, and users can choose from a staking period of 1-4 years;
b. Balance: Allow users to view their accrued and ready-to-harvest yield balances;
c. Claim: Allow users to conveniently claim their accrued yield in a few clicks, by paying gas fees;
d. Bonus Yield (coming soon): Allow users to access the list of liquidity pools eligible for Bonus LP Yield;

4. APY
Users can estimate their CRO DeFi Yield;
a. Calculator: Allow users to estimate their token yield by inputting their planned liquidity provision, as well as CRO staking amount and time period;

5. Analytics
Users can view the overall and per token / pair data of the DeFi Swap protocol, including liquidity, trading volume, etc..

Users can access our protocol with the following methods:

  • Users can access the protocol and its analytics via a dedicated web app, and can be connected via any WalletConnect-enabled mobile wallet (coming soon on Crypto.com DeFi Wallet);
  • In the future, we will also support native integration within our Crypto.com DeFi Wallet and analytics access through API.

The protocol is implemented in a system of smart contracts on the Ethereum blockchain. It is an open-source software licensed under the GPL*.

Incentive Program

DeFi Swap users have access to 3 types of generous yield:

The table below summarizes the CRO DeFi Yield multiplier by CRO staking level and term, which will be applied to the liquidity provided as a percentage of total liquidity across pools to calculate a user’s share of the daily yield pool. The table is valid at protocol launch, and is subject to future update. Please refer to the DeFi Swap web app for the latest version.

Under the current set-up, users can get up to 20x multiplier, if they stake no less than 50,000,000 CRO for 4 years.

Supported Tokens

The DeFi Swap will support the following tokens at launch, and will open up to more tokens in the future. We welcome further suggestions from the community via our web app / social media channels.

  • (Wrapped) Ether (WETH)**;
  • Tether (USDT);
  • USD Coin (USDC);
  • Dai (DAI);
  • Chainlink (LINK);
  • Compound (COMP);
  • Crypto.com Coin (CRO);
  • Yearn Finance (YFI);
  • Wrapped Bitcoin (WBTC);
  • Uniswap (UNI);
  • Harvest Finance (FARM);
  • Swerve (SWRV);
  • UMA (UMA);
  • REN (REN);
  • NEST Protocol (NEST);
  • Aave (AAVE).

Geographical Coverage

The following geo-restrictions are in place at the time of launch:

Security

DeFi Swap is a fork of Uniswap V2 with Triple Yield incentives provided for liquidity providers, powered by CRO. Uniswap V2 was audited by dapp.org (link to the report here).

Prior to launching DeFi Swap, the smart contracts and DeFi operating model were audited by Crypto.com’s security team as well as blockchain researchers at SlowMist (link to audits here and here). Furthermore, all DeFi Swap protocol and support components are included in the Crypto.com HackerOne bug bounty program.

3. Crypto.com Ecosystem

Crypto.com serves over 3 million customers today with a holistic ecosystem of crypto product offerings. Crypto.com offers a powerful alternative to traditional financial services through Crypto.com App, Crypto.com Card, Crypto.com Pay, Crypto.com Exchange and Crypto.com DeFi Wallet.

Crypto.com Coin (CRO) token powers the entire Crypto.com Ecosystem and offers diverse and robust live utilities, including but not limited to:

  • Higher rebate on Crypto.com Pay checkout, gift cards and airtime;
  • Higher cashback and more perks on Crypto.com Card, e.g. free Netflix / Spotify Premium / Amazon Prime;
  • Taker fee rebates and lower maker fee on Crypto.com Exchange;
  • Token discounts and trading event on Crypto.com Exchange;
  • Higher APY on Crypto.com Earn.

To find out more about the CRO token and its complete suite of utility, please refer to the Crypto.com Whitepaper.

Crypto.com is built on a solid foundation of security, privacy and compliance and is the first cryptocurrency company in the world to have ISO/IEC 27701:2019, CCSS Level 3, ISO27001:2013 and PCI:DSS 3.2.1, Level 1 compliance. We are headquartered in Hong Kong with a 500+ strong team.

The DeFi Swap is a decentralized protocol deployed on the Ethereum blockchain. Each transaction record such as on-chain deposits and withdrawals are transparent on the network. The role of Crypto.com is as a provider of technology by contributing to the development of the product. Crypto.com is open-sourcing the core codebase and welcomes the input and decentralized contributions from the community.

4. Get Involved

Join us to bring DeFi to the next order of magnitude through the following means:

5. Risk Disclosure

The DeFi Swap protocol (“Protocol”) is a set of smart contracts made available by Defi Labs (“Crypto.com”) on a voluntary, “as-is” and “as available” basis. It is not a service of any kind and you should not rely on Crypto.com to assist you to evaluate the Protocol, assess its fitness for any purpose or comply with any requirements.  You assume all risks arising from interactions with the Protocol.  Crypto.com is not liable for any claim, damages or other liability, whether in contract, tort or under any other theory of liability, arising from, out of or in connection with the Protocol.

There are several risks when using the Protocol. These risks include inherent risks associated with the use of a virtual platform, the decentralized nature of the platform, and participating in virtual asset transactions. Risks include, without limitation:

  • Partial or total loss of virtual assets;
  • Collapse in liquidity with respect to virtual assets; changes in compatibility of a virtual asset with the Protocol, changes in the smart contracts;
  • Regulatory uncertainty and government action against virtual assets;
  • Extreme volatility;
  • Possibility of market misconduct by participants including for example market manipulation, trading on the basis of non-public information, and front running;
  • Delays in or complete failure of virtual asset transactions being confirmed;
  • Counterparty risk;
  • Faults, defects, hacks, exploits, errors or unforeseen circumstances occurring in respect of the platform or the technologies that the platform depends on;
  • Loss of private keys; and
  • Attacks on the platform or the technologies that the platform depends on including for example distributed denial of service, sybil attacks, phishing, social engineering, hacking, smurfing, malware, double spending, majority-mining, consensus-based or other mining attacks, misinformation campaigns, forks, and spoofing.

This list of potential risks is not exhaustive and is not intended to capture the extent of all possible risks. In the event of any of the above occurring, you may lose your virtual assets entirely. Participants should consider all of the above and assess the nature of, and their own appetite for relevant risks independently and consult their advisers before making any decisions in participating in the Protocol. USE AT YOUR OWN RISK.

* Apart from yield distribution smart contract
**Native ETH needs to be wrapped into WETH before it can be used on the DeFi Swap