Crema Finance — a powerful liquidity protocol, based on Solana that provides superior performance for both traders and liquidity providers.
About Crema Finance
Crema Finance's vision - to build the fundamental infrastructure for Solana's DeFi 2.0. For liquidity providers, CLMM greatly increases the flexibility of capital injection strategies. This can be called programmable liquidity, which exponentially increases the efficiency of the use of capital. In terms of earning commissions, CLMM is about 10-50 times more efficient than the traditional AMM model. In addition to transaction fees, there are separate rewards for growing liquidity. These additional farming incentives will be an effective method to attract more liquidity providers to join us for a long-term liquidity contribution.
Crema Finance mainly consists of the following modules:
| 1. | Concentrated liquidity market maker. |
| 2. | NFT Liquidity Farming. |
| 3. | Smart Router. |
| 4. | DAO management, based on veCRM. |
For traders, Crema offers the best deal price. Crema also supports a flexible ordering mode. Users can add one-sided assets within a specified price range, which can mimic the CEX limit order trading experience. This is great news for both individual traders and professional market makers.
Developers can easily integrate Crema CLMM pools into their own product. Crema will provide a complete SDK to make CLMM integration easier for external parties. They can not obly share Crema liquidity and market depth data directly, but they can also access historical data and liquidity data of all Crema pools quickly. This on-chain data, driven by natural market trading in CLMM, can be used as oracle data, fed by other platforms and protocols.
More about defi app
CLMM (Concentrated liquidity market maker) is a type of advanced market maker algorithm, developed for Dex platforms. This allows liquidity providers to add liquidity within their specified price ranges, greatly improving capital efficiency over previous DeFi market maker models.
The most common algorithm, adopted on current Dex platforms, is AMM, Automated Market Maker. AMM follows the classic constant product equation. Assets are distributed evenly along the entire price curve. All liquidity, added by liquidity providers to AMM, is in the full range. It's simple, but it also leads to a deep-seated problem for AMM platforms where much of the liquidity in AMM sits idle in the long run. The sheer amount of assets in AMM only provides a price that is still volatile.
In Crema CLMM pools, a user's position must contain enough X and Y assets to cover the price movement between the high and low of the position's price range. When the price goes beyond the price range of a position, that user position goes into inactive status.