Compound Finance spin-off, Cream Finance, has recently released another Automated Market Maker (AMM) creamY.
Cream Finance, which was released in August 2020, in its notification has claimed that the newly-launched AMM is ‘dynamically updatable’.
creamY Based On Uniswap, Balancer
Notably, the fork-off of Compound Finance used the concept of Uniswap, Balancer, Curve and Blackoleswap for generating creamY.
As per the announcement, the new dynamic AMM will have two versions. Version 1 of creamY will have a low subsiding process and would be relevant for stablecoins. Version 2 will have the ability to handle more volatile assets.
A few days ago, the first AMM was introduced by Cream Finance and that was Swap. With the help of it, the users can easily move from one collateral position to another and while doing so, they would not have to leave their platform also.
It is to be noted that the spin-off of Balancer works just like Uniswap, which has six liquidity pools and a native token as a reward.
AMM Integrates And Remove Trading Pairs
According to the report, with the help of AMM, the governance and liquidity providers would be able to integrate and remove the trading pairs, dynamically.
Soon after the launch of the new pool, the market liquidity is divided.
For creating the concept of updatable pools of Balancer, as a more dynamic approach has been accepted, “creamY combines these two core approaches to create a dynamically updateable AMM which consolidates liquidity while providing the best qualities of the AMMs it borrows from.”
It has been reported that the pool, itself has started behaving like a tradeable asset, so now it is not necessary for the liquidity provider to offer an equal share of assets. Also, if the providers do not have other assets then they would not have to think about slippage.
Recently, Andre Cronje of Yearn Finance described this newly-introduced dynamic AMM as a mixture of the shared order book.