I finally get to talk about Crypto.com’s new DeFi ecosystem; Cronos Chain. The new Cronos blockchain was launched on November 8th, and already has a UniSwap clone called VVS Finance. There are insanely high APYs on VVS finance as the token (VVS) is in its early stages and the developers are choosing to distribute the tokens through incentivized yield farming.
In this letter, I’ll walk you through getting your money onto Cronos Chain and how you can participate in CRO powered DeFi.
A handy past article of mine to read is the article on MetaMask. I use MetaMask to connect to Cronos. MetaMask is compatible with any Ethereum-like blockchain. Cronos is based on Ethereum ( not to be confused with “built” on Ethereum ), and so it can be interacted with using MetaMask.
Insane APYs on Cronos
First thing I’d like to share with you is the insane APYs that I’m getting by participating in the launch of VVS Finance. Here are some things to note about it:
It is a protocol that is just like PancakeSwap or UniSwap.
It allows users to add liquidity to pools, and farm yield.
It is a DEX that allows people to swap one token for another.
Finally, it allows me to stake my VVS tokens for unreasonably high APYs (179,702,804%).
I know what you’re thinking, what’s the catch? Well, the catch is that the APY is paid out in VVS tokens which were created on November 8th. The APY is so high because the developers of the protocol want to incentivize people to provide liquidity to the protocol. Users that provide liquidity to the protocol in the early days will be rewarded handsomely for their participation.
The risk here is in VVS token crashing in price to the point where it was meaningless to participate in farming in the first place.
How to get your cryptocurrency onto Cronos
There are a few steps to getting your tokens onto Cronos. If you’ve ever put your BTC or BNB on Binance Smart Chain, then the process is the same. But if this is the first time you’re moving your tokens onto a sidechain, then pay attention because this is something you don’t want to do wrong.
Option 1: Moving from the App or Exchange
If you want to have WBTC, USDC, or CRO on Cronos, then moving them from the mobile app or the exchange is definitely an easy way of achieving this. Crypto.com has done a good job of making it obvious as well. Let’s check out how its done.
First set up MetaMask
You will need to add a new network to MetaMask so that you can receive and manage funds from MetaMask. Use the following configurations when adding a new network to MetaMask.
Moving WBTC to Cronos
You first need to have WBTC in order to move it to Cronos. So if you don’t have any, its pretty simple to trade BTC for WBTC through either the Crypto.com Exchange or the App. Once you have WBTC, navigate to your wallet and hit the withdraw button.
Then you will be given a screen that allows you to withdraw to either an external wallet address, or the Crypto.com App. You will want to withdraw to Cronos, which is an external wallet address.
The next screen will allow you to add a new wallet address. You will be withdrawing your WBTC to this address.
Since this is the first time you’re withdrawing to Cronos, you will need to set up a new withdraw address. WBTC could be withdrawn to Ethereum, or Cronos. You want to select Cronos. Grab your Cronos address from your MetaMask wallet.
Then you can add the address to the withdraw interface.
The next screen will allow you to withdraw your WBTC to your Cronos wallet, managed by MetaMask.
Make sure all the details are correct, then click send! The process is exactly the same for sending CRO to Cronos. You will definitely need some CRO on Cronos in order to pay transaction fees (which range from .1 CRO to 1 CRO on average).
Providing Liquidity on VVS Finance
I’m currently providing liquidity to the CRO/WBTC pool and its earning me more than 500% APY paid out in VVS tokens. In order to do the same, you need to have both CRO and WBTC in your MetaMask Cronos wallet.
Then navigate to the Trade→liquidity tab on vvs.finance. From there, you can add CRO and WBTC to the liquidity pool.
Once you’ve added liquidity to the pool you will have CRO-WBTC-LP tokens which can be staked for 500%+ APY through the Earn→Farm tab. Hit the ‘+’ button to stake your LP tokens.
You will immediately start earning VVS tokens which then can be staked for 1,000,000%+ APY on the Earn→Mines tab.
That is all that there is to it. I started doing this a week ago, and so I was entitled to massive rewards, but the rewards are in fact diminishing at a massive rate as more people add their liquidity to the pools.
Learn How to Do This for Future Rewards
This guide outlines the general process of moving tokens around various blockchains. This is an essential skill that is required for taking advantage and seizing opportunities that present themselves.
I won’t be holding onto my VVS tokens for very long, as soon as the APY drops below 100%, I’ll likely move my tokens somewhere else to take advantage of the next launch promotions that give me insane APYs.
I’ve been taking about 50% of the VVS tokens and converting it straight into WBTC and CRO as a “take profits” strategy. That way, if worst comes to worst and VVS totally dumps, then I’ve already taken some profits from this little experiment.
I do expect that Cronos will continue to expand as an ecosystem. This will not be the last opportunity to be featured within the Crypto.com ecosystem on Cronos chain.
If you have any questions, feel free to reach out me.
Regards,
Keegan
This letter is not investment advice. In general I think pursuing these high APYs is extremely risky and akin to gambling. Do your own research and proceed with extreme caution should you decide by yourself to follow along with the steps laid out in this letter.