A Quick Overview of Cronos Supported by Crypto.com: Features, Ecosystem, and Future

Source: CoinGecko

Compiled by: Hu Tao

Cronos is an EVM-compatible public chain launched on November 8, 2021, and is part of the growing Crypto.com product ecosystem.

However, before we delve into Cronos, we must take a step back to explore its origins. Cronos is part of the broader Crypto.com ecosystem, which includes the Crypto.com Exchange, the Crypto.com App, and the Crypto.org Chain.

Crypto.com has earned a reputation as a crypto debit card issuer originally named Monaco, which later rebranded to Crypto.com and launched an all-in-one crypto application. Earlier, the company launched its own chain in the form of the Crypto.org Chain through the Crypto.org Foundation. So, if the Crypto.org Chain already exists, why launch Cronos? This is because the original chain is a Cosmos SDK-based blockchain built on the Tendermint blockchain. This means it is incompatible with Ethereum, which is based on Solidity coding, while Cosmos chains use Rust and Go programming languages.

However, Cronos aims to bridge the gap between these two chains, thanks to the use of Ethermint. Ethermint allows Ethereum/EVM chains to run as Cosmos applications, making the two blockchains compatible. It has all the features of Ethereum but also benefits from Tendermint's PoS implementation.

Simple Comparison

To best understand the relationship between Crypto.com and Cronos, we can compare them to the Binance product ecosystem.

As seen in the infographic, Binance and Crypto.com have a similar set of products. Binance has its native chain in the form of Binance Chain, while Crypto.com has the Crypto.org Chain. Both products are applications based on the Cosmos SDK, built on the Tendermint blockchain.

On the other hand, both are EVM-compatible products, allowing the deployment of protocols and contracts commonly found on Ethereum.

Features of Cronos

Some features brought by Cronos include:

• Paying gas fees using Crypto.com Coin ( CRO )
• The ability to interact with the Cosmos ecosystem and other EVM chains
• Inter-blockchain communication (IBC) capabilities, meaning it can communicate with other Cosmos-based chains, such as the Crypto.org Chain, as well as Terra, Kava, Cosmos, etc.
• As an EVM chain, it can also deploy Ethereum-native protocols on Cronos, such as Curve, Aave, Compound, etc.
• Low transaction costs on Cronos, executed within seconds

Trading

Although it is a relatively new chain, there are already various automated market makers on Cronos. Let's take a look at some of the most popular ones.

VVS Finance

Undoubtedly, as the largest decentralized exchange (DEX) on Cronos, VVS Finance has the highest trading volume and deepest liquidity. Currently, the main products on VVS include Bling Swap, Crystal Farms, Glitter Mines, and Initial Gem Offering (IGO).

Bling Swap: Allows users to trade between various Cronos-based tokens.
Crystal Farms: Its liquidity mining program.
Glitter Mines: Allows users to stake their VVS tokens (the governance token of VVS) to earn rewards.
Initial Gem Product: A token launchpad version from VVS, where new projects can raise funds from VVS users. This feature has not yet been released, but according to VVS, it should be launched soon.

Cronaswap

Cronaswap is also one of the pillars of Cronos, offering products similar to VVS Finance. It has an exchange, yield farms, launch pools, and a lottery.

Exchange: A DEX for trading Cronos-based tokens
Yield Farming: Stake LP tokens in exchange for CRONA tokens (the governance token of Cronaswap) as rewards.
Launch Pool: Here, single-sided staking is enabled, but currently only supports CRONA. In the future, Cronaswap intends to add more tokens.
Lottery: Users can purchase lottery tickets with CRONA tokens (at $2 each) for a chance to win the CRONA prize pool.

Yield Aggregators

To attract users, new chains and protocols tend to host large liquidity mining events, where users earn token rewards by providing liquidity. Cronos is no exception, and if you are looking for high-yield mining pools, you have come to the right place.

VVS Farm

For some reason, VVS is the largest AMM on Cronos, due to its stable yields in farming. Under its Crystal Farms, there are various pools to choose from, ranging from dual pools (like VVS - USDT) to stablecoin pools (like USDC - USDT). At the time of writing, yields range from 23% to 820%.

Autofarm

Autofarm was initially deployed on BSC and has since expanded to multiple chains, including Cronos. As the name suggests, it helps users farm automatically. Just select a farm to deploy your funds, and it will automatically compound at intervals. The optimal number of compounds in a year is determined by Autofarm.

Autofarm has deployed various strategies to cater to different DEXs on Cronos. Currently, it supports VVS, Cronaswap, and Crodex. To get started, one needs to deposit liquidity in one of the aforementioned AMMs. Once LP tokens are obtained, these tokens can be staked on Autofarm.

Beefy Finance

Similar to Autofarm, Beefy Finance is also a yield aggregator. It currently only supports VVS and Cronaswap, so its strategies are fewer than Autofarm.

Impact of Cronos Launch

CRO Price Appreciating

Source: CoinGecko

EVM-compatible chains require gas to conduct transactions, which is typically paid in the chain's native token. For example, Ethereum requires ETH, Binance Smart Chain requires BNB, Avalanche requires AVAX, and Polygon requires MATIC. Cronos is no exception, as it requires gas to facilitate transactions on its network.

Cronos uses CRO as a payment method for gas fees on its network, which benefits the token price growth. When the Cronos mainnet launched on November 8, the trading price of CRO was $0.35. However, as liquidity flowed into Cronos and transaction volumes on the chain rebounded, CRO surged to a high of $0.95, marking a historical high for the token. Unfortunately, the market correction in early December also affected CRO. Since then, the token has plummeted 40% from its historical high, and whether it will recover remains to be seen.

Total Value Locked (TVL) Surge

Shortly after the chain went live, Cronos saw a dramatic increase in liquidity locked in its ecosystem. Since then, it has surpassed $1 billion and seems to have reached a plateau. However, this figure is still impressive, as it has surpassed many other public chains to enter the top 15.

What to Expect

Since Cronos recently launched its mainnet beta, there hasn't been much activity beyond a few farms and exchanges. However, we foresee this changing in the near future, and here are the reasons we believe so.

Particle B

Crypto.com launched the Particle B ecosystem fund to support the development of Cronos. With a fund of $100 million, it is prepared to provide up to $1 million in funding to projects committed to building on Cronos. This fund should be able to drive the development of new projects and attract existing protocols to expand to Cronos.

Influx of New DeFi Users

Crypto.com has 10 million users, and considering it targets non-native cryptocurrency users, it can be assumed that many of these users have not yet interacted with DeFi applications on other platforms. Inevitably, Crypto.com will eventually expose these users to Cronos, bringing a significant influx of new users to the DeFi ecosystem.

Porting Protocols from Cosmos-SDK Based Chains

As mentioned earlier, Cronos supports IBC. This means that protocols from Cosmos SDK-based chains will be able to deploy on Cronos. In short, we may see protocols from Terra, Cosmos, and Kava appearing on Cronos in the near future.

More Ways to Connect to Cronos

Currently, there are not many methods to transfer funds to Cronos. One must create a Crypto.com account or use a Keplr wallet, and the options available to users are limited. However, more bridging methods are being explored, and it may soon allow users to bridge back and forth to the mainnet.

Conclusion

In the long run, Cronos has viability, especially thanks to the support of Crypto.com. It has successfully attracted builders to set up shop on their chain in the short term and has piqued the interest of many DeFi users.

However, with the influx of new entrants, competition among EVM chains has been heating up over the past year. These chains need to provide more value and incentives for users and builders to attract crowds.

If Cronos wants to shed the label of "just another EVM chain," it needs to distinguish itself from others and sell that idea to the public.