C.R.E.A.M. Finance, a Taipei-based decentralized finance (DeFi) lending platform, on Sept. 8 announced its support of six metaverse and non-fungible tokens (NFTs) that will allow users to borrow and lend against the assets.
- NFTs, unique digital assets whose authenticity and ownership are tracked on a blockchain, have seen exponential growth over the past year. NFTs comprise a wide range of digital assets including art, collectibles and games. Blockchain game Axie Infinity has soared in popularity, particularly in the Philippines, where it has provided a new source of income for many in the country during the Covid-19 pandemic.
- As part of its strategy to build the bridges between DeFi, NFT and the metaverse ecosystems, C.R.E.A.M. Finance has integrated six NFT tokens — Axie Infinity (AXS), Yield Guild Games (YGG), Origin Protocol (OGN), Decentraland (MANA), The Sandbox (SAND) and Rarible (RARI) — into its platform. NFTs have limited composability and C.R.E.A.M Finance says users will now be able to use their NFTs for borrowing and lending DeFi services on the platform and increase the capital efficiency of their digital assets.
- C.R.E.A.M. Finance has collaborated with Chainlink, a decentralized blockchain oracle network, to obtain price feeds on Axie Infinity’s AXS and Yield Guild Games’ YGG tokens.
- “NFTs are an important onramp to bring mainstream users into the broader cryptocurrency ecosystem and ultimately, to DeFi,” said Leo Cheng, co-founder and project lead at C.R.E.A.M. Finance. “We are addressing this particular need for new growth allowing a new segment of crypto holders to benefit from their digital assets. We’re excited to share the first stage in our NFT strategy as we continue to build the necessary bridges between the ecosystems.”
- C.R.E.A.M. Finance’s latest move into NFTs follows the US$3.5 million loan it facilitated in July with crypto art collective PleasrDAO using high-value non-fungible tokens as collateral.
- Last month, C.R.E.A.M. Finance suffered a flash loan exploit of 462,079,976 in AMP tokens — Flexa Network’s native tokens — and 2,804.96 ETH tokens, worth about US$30 million at the time. The platform has said it would replace the stolen cryptocurrencies to ensure that there was no liquidity issue for its users.
See related article: Riding the NFT trend: questions to consider before investing in these hot digital assets