Table of contents
The Ultimate Yield Farming Guide For Cronos
What is Cronos?
Cronos in the News
Cronos Technology
$CRO Token
The Cronos Ecosystem
Wallets for Cronos
De.Fi on Cronos
Yield Farming on Cronos
Should I use Cronos?
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The Ultimate Yield Farming Guide For Cronos
Cronos, with its compatibility with both Ethereum and Cosmos-based networks, provides an attractive solution for developers looking to build decentralized applications and move assets between different chains seamlessly. This guide will provide a comprehensive overview of the Cronos network, covering everything from its architecture and consensus mechanism to its unique features and use cases.
In the following sections, we’ll dive into the technical aspects of the Cronos network, including its transaction fees and block times, and explore the benefits of its compatibility with other ecosystems. We’ll also take a closer look at some of the most promising use cases for the network, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and the Metaverse. Whether you’re a seasoned developer or simply curious about the latest trends in cryptocurrency, this guide will provide you with the information you need to understand Cronos and its potential for transforming the Web3 landscape.
What is Cronos?
Cronos is a blockchain network supported by Crypto.com, that has been designed to enable interoperability between the EVM and Cosmos ecosystems. Powered by Ethermint and built on the Cosmos SDK, Cronos is EVM-compatible, allowing developers to quickly and easily port their apps and smart contracts from Ethereum and other EVM-compatible chains. This makes Cronos an attractive option for developers looking to build decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and Gaming projects. Transactions on the network are paid for using the $CRO cryptocurrency, providing users with low-cost fees, high throughput, and fast finality.
Cronos in the News
Cronos has been making waves in the news lately, with several important announcements and updates in the last 6–12 months. One of the most notable recent developments was the news that Crypto.com, the close partner of Cronos, had obtained a preparatory license in Dubai, which caused a 5% surge in the price of CRO on March 22nd. This license paves the way for Crypto.com to offer its services in the Middle East, which is a significant step towards expanding the company’s global reach, along with that of Cronos.
Another important development for Cronos was the recent release of its Galileo update, which brought the network out of beta and updated it to version 1.0. This update was designed to improve the functionality and stability of the Cronos Chain, making it an even more attractive platform for developers looking to build decentralized applications and DeFi solutions.
In a recent development, the Cronos governance proposal successfully passed, which aims to initiate a burning mechanism for native CRO tokens. The proposed mechanism intends to remove approximately 100 million CRO tokens from circulation within the first year, equivalent to 15% of the annual rewards. As a result, this will lead to a reduction in the effective inflation rate from 2.5% to approximately 2.1%. This burning process is expected to contribute to the overall stability and sustainability of the Cronos ecosystem by managing token supply and mitigating inflationary pressures.
Cronos has recently announced several major partnerships in April and May 2023 such as with Amazon Web Services (AWS), Altura, DappRadar, Wombat Gaming Platform, Multichain, and XDEFI.
Cronos’ Technology
The Cronos Chain is a revolutionary blockchain network that has been designed to provide developers with a scalable, high-throughput framework for building decentralized applications. Based on Ethermint, the Cronos Chain is fully compatible with the Ethereum Virtual Machine (EVM), making it an ideal platform for developers looking to build apps and smart contracts on the Ethereum ecosystem.
One of the main differentiators of the Cronos Chain is its interoperability with the Inter-Blockchain Communications (IBC) ecosystem, allowing users to move assets and data across different blockchains seamlessly. This interoperability, combined with the Cronos Chain’s ability to run Solidity-based dApps and its fast transaction processing speeds, provides developers with a powerful tool for building innovative solutions in the decentralized finance (DeFi) space, NFTs, and Gaming.
The Cronos Chain’s architecture is based on the Tendermint Core consensus engine, which utilizes staking to secure the network and ensure fast, reliable transaction processing.
$CRO Token
CRO serves as the native token for the Cronos network. It is utilized in the payment of network fees. At the same time, CRO is also the token for the Crypto.com exchange, similarly to how BNB is the native token for Binance. Users can stake CRO tokens in order to upgrade their Crypto.com Visa Debit cards, and enjoy additional perks.
As ofApril 2023, CRO is trading at slightly under $0.07, with a market cap of $1.7b and a circulating supply of 25.2 billion tokens.
The Cronos Ecosystem
There are approximately 500 active apps and partners that exist in the Cronos ecosystem, which includes some well-known ones like VVS Finance and Tectonic Finance.
As for the total value locked (TVL), it currently stands at over $371m as of 6 April 2023, with native DEX VVS Finance making up slightly over 50% of the share of TVL on Cronos.
Wallets for Cronos
Crypto.com Wallet Extension
The Crypto.com Wallet Extension is a secure and convenient way for users to access decentralized applications (DApps) and confirm transactions across various modes. With support for the Cronos Chain and EVM chains, the extension allows users to confirm transactions directly on desktop browsers without having to launch the DeFi Wallet app. Additionally, for users who prefer to reconfirm transactions via the DeFi Wallet mobile app, the Crypto.com Bridge Wallet Extension is available as an option. Overall, the Crypto.com Wallet Extension provides a streamlined and user-friendly interface for managing your assets and interacting with DApps on the Cronos Chain and other EVM-compatible networks.
MathWallet
A popular wallet for Cronos is MathWallet. MathWallet is a mobile app-based wallet that supports EVM-compatible chains. Since Cronos is EVM-based, you should have no problem using MathWallet on Cronos.
MathWallet offers mobile apps for both iOS and Android, and also features a browser extension option if you’d like to manage your positions on desktop.
MetaMask
Metamask needs no introduction: it is a popular browser extension and mobile wallet that allows users to interact with decentralized applications (dApps) built on the Ethereum network and EVM-compatible chains. The extension integrates with most dApps and provides a seamless, secure, and convenient way for users to access and use decentralized services.
Because Cronos is compatible with EVM, you are also able to use MetaMask to interact with DApps on the EVM side of Cronos.
Bridges for Cronos
Cronos Bridge
The Cronos Bridge is a platform that enables users to move assets across different blockchains using the DeFi Wallet. At present, it facilitates the transfer of CRO between the Crypto.org Chain and Cronos, and also supports ATOM transfers between Cosmos and Cronos. In the near future, the bridge will introduce cross-chain functionality between Ethereum and Cronos, allowing for the transfer of ERC20 tokens such as ETH, WBTC, USDT, and DAT. This expansion will enhance the versatility and accessibility of the Cronos ecosystem.
Jumper Exchange (Powered by Li.Fi)
Jumper Exchange by **LI.FI is a cross-chain bridge aggregation protocol that supports any-2-any swaps by aggregating bridges and connecting them to DEX aggregators. Users are able to do cross-chain swaps from any chains supported by Li.Fi into Cronos. For users that are in need to CRO tokens for gas, they may leverage on Jumper Exchange’s gas swap feature to receive CRO tokens natively on Cronos.
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Yield Farming on Cronos
Cronos, the interoperable blockchain network that supports both Ethereum and Cosmos-based ecosystems, has seen rapid growth in its DeFi ecosystem since its launch in late 2021. The leading DEX on Cronos is VVS Finance, while the largest lending protocol is Tectonic Finance, providing users with a range of options for yield farming and managing their assets. Fulcrom Finance, a decentralized perpetual exchange that allows users to trade leveraged positions with low fees and zero price impact, recently launched on Cronos providing users with perpetual trading opportunities.
As of April 2023, the Cronos ecosystem has matured, offering numerous opportunities for yield farming. For example, users can participate in yield farming on Cronos using VVS Finance, the platform’s highest-TVL DEX, Tectonic Finance, the largest lending protocol, and on Fulcrom Finance, the easy to use perpetual trading platform These platforms provide users with a variety of options for earning yields on their crypto assets.
In the following sections, we’ll explore how to participate in yield farming on Cronos, discussing the top farms and yields available on platforms like VVS Finance, Tectonic Finance, and Fulcrom Finance. Whether you’re an experienced DeFi user or new to the space, this guide will provide you with the information you need to start earning yields on the Cronos network.
The process of swapping and adding liquidity is mostly similar to that on Ethereum-based DEXes, so if you are already familiar with yield farming on EVM-compatible ecosystems, you will feel right at home.
To use Cronos, you will first need to purchase some CRO tokens. To do this, you can use the Crypto.com App or utilise Jumper Exchange to do CRO gas swap into Cronos.
Next, navigate over to the VVS Finance interface and connect your Metamask.
Follow the automatic prompt to switch the network to Cronos. Then, head over to the ‘Swap’ page.
Swap half of your CRO tokens for the other coin you want to farm with. For example, USDC.
Then, head over to the Pool page by clicking on ‘Earn’, and selecting ‘Farms’.
Choose tokens you’d like to add Liquidity for. In this case, we have chosen CRO and USDC:
Click “Flash CRO-USDC LP”. This function allows you to add liquidity and stake your tokens to the farm in a single step.
Once the transaction has gone through, you should now be able to start earning rewards! As your VVS Balance builds up, simply click on the Harvest button periodically to collect your rewards.
If you would prefer to lend your tokens for yield, you always have the option of Tectonic Finance. The process is considerably simpler than for VVS Finance. All you need to do is the following:
Head over to Tectonic Finance and Connect your MetaMask, ensuring that the Cronos network is selected.
Next, you should be able to choose a token to either supply or borrow from the list interface above.
In the final step, simply supply the token of your choice — in this case, USDC — at the bottom left hand corner of the page above.
Enter the amount of tokens you would like to supply. Once you deposit your tokens, you will be earning the Supply APY.
If you are interested to yield farm on a perpetual trading platform, you may head to Fulcrom Finance to trade up to 50x leveraged positions with low fees and zero price impact or be a liquidity provider to earn real yields.
Head over to Fulcrom Finance, and Connect your MetaMask, ensuring that the Cronos network is selected.
Choose the token pair that you would like to Long / Short and decide on your leverage before opening a Long / Short position on Fulcrom.
Head over to the “Earn” page, whereby you can provide liquidity to earn “Real Yields” on Fulcrom. The yields are distributed partially from the fees accumulated by the Fulcrom platform and from esFUL token emissions.
Select “Buy and Auto-Stake FLP”, choose between USDC, USDT, ETH, BTC, ATOM, or ADA to convert into FLP. Your FLP will be automatically staked into the FLP pool and you will be earning real yields in CRO and esFUL emissions rewards.
Should I use Cronos?
If you’re a user looking for a blockchain network that provides interoperability, scalability, and a range of DeFi opportunities, then Cronos could be the perfect fit for you. With its compatibility with both Ethereum and Cosmos-based ecosystems through a bridge to the Crypto.org chain, Cronos allows developers to port their apps and smart contracts easily, while users benefit from low-cost transactions, high throughput, and fast finality.
Additionally, the network offers a range of lending, staking, and yield farming opportunities through platforms like VVS Finance, Fulcrom Finance and Tectonic Finance. However, as always, this is not investment advice, and you should always do your own research first before making any financial decisions in the volatile cryptocurrency market.
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