Cream Finance
Crypto Overview
Overview
Cream Finance (CREAM) is a decentralized lending protocol built on Ethereum that enables users to lend and borrow various cryptocurrencies. The protocol was launched in 2020 as a fork of Compound Finance.
Intended Utility
The CREAM token serves as a governance token for the Cream Finance protocol, allowing holders to vote on protocol changes and parameters. It also provides holders with a share of protocol fees.
Actual Utility & Adoption
The protocol has faced significant challenges, including a major $130 million hack in October 2021. While still operational, activity on the platform has decreased substantially since the hack. Current usage primarily revolves around governance voting and claiming protocol fees.
Token Distribution & Founder Analysis
Initial token distribution included allocations to team members and early investors with vesting schedules. The project's development team has remained active in maintaining the protocol despite setbacks.
Technology & Revenue Model
The core functionality involves interest-based lending and borrowing, which is problematic from an Islamic finance perspective as it directly involves riba (interest).
Crypto Impact
To assign a comfort level investing in Cream Finance from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Cream Finance.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.