Cream Finance

Overview

Cream Finance (CREAM) is a decentralized lending protocol that enables users to lend and borrow various cryptocurrencies. The platform is built on Ethereum and functions as a fork of the Compound protocol. The CREAM token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and updates.

Purpose and Utility

The primary purpose of CREAM is to facilitate lending and borrowing of crypto assets. Token holders can participate in governance decisions and receive a portion of the protocol's fees. The platform has expanded to include features like Iron Bank (protocol-to-protocol lending) and Cream v2 (flash loans).

Business Model Analysis

The core business model revolves around lending and borrowing crypto assets for profit, which raises significant Shariah compliance concerns as it involves riba (interest). While the governance aspect of the token could potentially be considered halal, the fundamental purpose and primary use case of the protocol is interest-based lending.

Platform Activity and Development

The protocol has faced several security incidents, including a major exploit in October 2021 that resulted in a significant loss of funds. While development continues, the primary focus remains on lending and borrowing activities.