What is Cedro Finance?
Cedro Finance is a cross-chain decentralized liquidity protocol where users can lend and borrow the listed assets across multiple chains with affordable transaction fees.
Lenders are able to deposit their assets to contribute to the liquidity of the platform. Simultaneously, borrowers are able to borrow the liquidity in an overcollateralized manner.
Cedro’s vision is to provide a seamless user experience for this cross-chain process without compromising on security.
For the same action that took ~50 clicks, a user can do it with ~5 clicks.
Cedro Finance is starting out as an Omnichain lending and borrowing protocol but eventually aims to become an Omnichain financial hub, and currently has new products in development.
Cedro Finance has been live on testnet since 2022 and has since processed over 300,000 transactions
What Makes Cedro Finance Different?
Right now, the cross-chain lending and borrowing process seem to be quite tedious, dangerous, and expensive.
Cedro Finance founder Rachin Kalakheti once said:
“Operating under the UX of existing cross-chain bridges, a user needs to use multiple dApps and over 50 clicks just to deposit in a cross-chain manner.”
In addition, with Cedro Finance, liquidity is fragmented at chain, application, and asset levels.
Image source: Cedro Finance
There are numerous reasons to use Cedro Finance:
- Higher capital efficiency, which means better rates on assets for lenders and borrowers.
- Wider financial opportunity access. Users can open your position on multiple chains with ease.
- First-class user experience. Users can open positions across chains in just 5 clicks.
- Securely and easily scalable. Cedro Finance has top-notch architecture.
Furthermore, Cedro Finance introduces to users new features that have never been on the market:
- Isolated Market Pools: this allows the platform to support more risky assets, similar to how Solend is doing.
- Computation Offloading: this allows the platform to reduce computations on smart contracts, resulting in cheaper transaction fees.
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What is Cedro Unified Liquidity Token (CULT)?
Currently, many of the multi-chain assets (stablecoins) are being treated as different assets, hence the liquidity fragmentation is at asset level.
For example, USDC is live on multiple chains such as Ethereum, Solana, Polygon, etc. Yet, they are treated as different assets.
Cedro Finance can virtually merge the liquidity of these assets across chains. So, the origin chain of the stablecoins will be trivial.
Cedro Unified Liquidity Token (CULT) is the exclusive feature that tackles the problem of fractured liquidity found on protocols like Uniswap.
Instead of spreading one token across multiple networks, CULT lets users deposit multi-chain assets (ex. USDT, UNI, etc.) from different chains and adds them to a singular unified liquidity pool.
As a result, capital efficiency times 100, or even infinity!
About CED Token
CED is the native utility token of Cedro Finance.
It will be deployed on all chains supported by the protocol.
This token will be allocated to those who provide value to the protocol itself, including lenders, borrowers, ad stakers.
Cedro Finance has announced the release of its CED token and is expected to distribute rewards to all users who’ve participated in the Cedro Finance Testnet on BSC, Fantom, Arbitrum, Avalanche, and Ethereum.
Total supply is 500M, with an allocation as distributed below:
Credit: Cedro Finance
Cedro Finance makes revenue from the following fees:
- Cedro’s Treasury: 65%
- CED and veCED holders: 25%
- veCED holders: 10%
CED is used to incentivize the Liquidity Providers (Lenders) for their contribution to the protocol, with two dependent factors including the liquidity they provide in the pool and the time they provide the liquidity.
CED token is also used during the staking procedure. Through time, the stakers will receive veCED by the amount calculated below:
veCED = CED * time
*Note: one unit of time equals 6 months
Specifically, if a user stake 100 CED for 6 months, they’ll receive 100 veCED. If they stake 100 CED for 12 months, they receive 200 veCED.
The holders of veCED will have the benefits of governance voting and boosted earnings.
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About Cedro Finance’s Ecosystem
The major goal of Cedro Finance is to act as a cross-chain liquidity layer over time.
Other than that, Cedro Finance can be an infrastructure to build many dApps, such as
- overcollateralized decentralized omnichain stablecoins,
- peer-to-peer cross-chain lending and borrowing platforms,
- cross-chain exchanges, omnichain yield aggregators,
- cross-chain trading platforms,
- credit line for fiat platforms.
Any many more!
Cedro Finance’s Architecture
Cedro Finance is comprised of 3 major components: brand, messenger, and root.
Credit: Cedro Finance
Cedro Finance Testnet Token Airdrop
To get started all you have to do is click on the “Get Test Token” tab located at the top of the page.
Once you have your test tokens choose “Add More” from the collateral list at the bottom of the page and deposit your tokens into Cedro.
You can jump between multiple networks and request testnet tokens for each one.
How to Deposit
- Go to https://app.cedro.finance/
- Connect your Wallet, using WalletConnect to add your wallet to KEYRING PRO
3. In the navigation bar, click on the ‘Get Test Token‘ button to receive Cedro test tokens (assets to deposit) and Native test tokens (for gas).
4. Go to the Market tab from the navigation bar, where you can choose the network and the asset you want to deposit. Click on the ‘Detail‘ button to learn more about the asset.
5. On the asset detail page, click on the ‘Supply‘ button. You will be prompted to change the network to the network of the asset if you aren’t already connected.
6. Enter the amount you want to supply and click on ‘Supply‘.
The information will be sent to the Root chain. After that, your transaction will be successful. The status of a transaction can be tracked in the Transaction History tab from Dashboard.
How to Borrow
- Inside the Asset Detail page, click on the ‘Borrow‘ button.
- You need to switch the chain to the Root (Mumbai testnet) chain because Borrow, Withdraw, and Liquidate actions are performed in the Root chain.
This request is sent to the chain you’re borrowing the asset from. You’ll receive the asset once the transaction is successful.
How to Repay a Loan
- In the borrow list in Dashboard, look for the borrow position you want to repay and click ‘Repay‘.
- Enter the amount you want to repay and click ‘Repay‘.
How to Withdraw a Deposit
Simply follow two steps:
- In the Collateral List in Dashboard, look for the supply position you want to withdraw and click ‘Withdraw‘.
- Enter the amount you want to withdraw and click ‘Withdraw‘.
If you withdraw stablecoins, you can withdraw them on any chain that they reside in by changing the chain from the Current Chain menu above the ‘Withdraw‘ button.
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Summary
Cedro Finance is an omnichain liquidity layer where users can lend and borrow across multiple chains in just a few clicks with excellent UX.
The innovative architecture and features provide the highest capital efficiency and wider financial access.
Multiple products are being planned to build within Cedro Finance ecosystem, especially when the protocol has announced that they raised $1.5M in their Pre-Seed Funding.
The project is indeed growing at a fast pace. If you find this article helpful, please subscribe to our newsletter for more engaging reads about the industry.
