CroSwap is an exclusive Automated Market Maker (AMM) based Decentralized Exchange (DEX) designed to work seamlessly on the fast-growing Cronos Network.
CroSwap offers several features that support decentralized trading.
CroSwap allows you to trade assets without using Centralized Exchanges. All transactions initiated on CroSwap are routed directly through your decentralized wallet. Your assets remain in your possession rather than relying on a Centralized Exchange to secure your assets.
You can only trade tokens on CroSwap if those projects have enough liquidity. Projects available on the Decentralized Exchange that lack sufficient liquidity can either be expensive or impossible to complete a transaction.
CroSwap allows users to inject liquidity in exchange for Liquidity Pool (LP) tokens. Holding LP tokens generates income for the holder in the form of trading fees.
Yield farming is the process of using decentralized finance (DeFi) to maximize returns. Users lend or borrow crypto assets on CroSwap and earn cryptocurrency in return for their services.
Yield farming is a complicated process that exposes both borrowers and lenders to financial risk. When markets are turbulent, users face an increased risk of temporary loss and price slippage.
During periods of high volatility, liquidity providers can experience impermanent loss. This occurs when the price of a token in a liquidity pool changes, subsequently changing the ratio of tokens in the pool to stabilize its total value.
Yield farming can give higher rewards than regular pools, but it comes with the risk of Impermanent Loss. If you'd like to read about Impermanent Loss, check out this article.