Why Stake for CRETH2
CRETH2 deposits have ended for C.R.E.A.M. Finance
Existing CRETH2 token holders can exchange CRETH2 for ETH when The Merge is complete. More info: https://ethereum.org/en/upgrades
Eventually, people will migrate from ETH to ETH2, but here we offer more benefits for staking ETH in C.R.E.A.M. Finance during the migration process.
Users on C.R.E.A.M. will be able to stake ETH and also use this staked position (CRETH2, the proof token) as collateral on the C.R.E.A.M. lending platform to borrow assets. This means by staking ETH with C.R.E.A.M., users can earn staking rewards, potential supply yield, in addition to having borrowing power on the C.R.E.A.M. lending platform.
In short:
Stake ETH and get reward from ETH2 migration
Use proof token CRETH2 as collateral to borrow assets, which is exclusive in C.R.E.A.M.
Stake CRETH2 in reward pool to get CREAM, which is also exclusive in C.R.E.A.M.
How to Get Reward from ETH2 Migration
That's the best part. To get reward, you don't have to do anything except staking!
Just like Miners benefit from their contribution to Ethereum, Validators also benefit from their contribution to Ethereum 2.0. Once you stake ETH and get CRETH2 back, you become one of the Validators of ETH2 migration. Validators get rewarded for proposing and attesting to blocks. The rewards are tied to the overall amount of ETH staked in the network. More details and reward formula can be found in the Launchpad.
And we do all the Validator works for you :)
Finally, when ETH2 is ready, you can unwrap CRETH2 to ETH2 with a better exchange rate than ETH to CRETH2, and that's where you get the reward. Do whatever you want with CRETH2, but hold it when ETH2 is launched, if you want to get Validator reward.
Risks You Should Know Before Staking
Once staking in ETH2, you will NOT be able to withdraw your deposits until Ethereum Foundation finishes Ethereum 2.0 migration, which is estimated to deliver in 2021.
However, your ETH is pretty safe, for the only place these ETH could be sent to is the ETH2 deposit contract. No one can move those ETH away from the CRETH2 contract, including the team. Check out the contract to verify.
Also, this is a custodial service, and it will incur 8% fee on your Validator reward while you unwrap your CRETH2. You should do your own research on the whole ETH2 migration plan, understand what is custodial / non-custodial service, and use at your own risk.
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