Crescent Network is a DeFi solution composed mainly of three operational branches through which Crecent will enahnce capital efficiency and profitability and manage costs and risks effectively.
The origin of Crescent Network
It all started with the coming together of great minds from the Cosmos ecosystem in search of an overall improvement: to increase profitability and provide the community with a more functional solution that allows users to get the most out of the DeFi economy.
The teams at B-Harvest and Ignite, formerly known as Tendermint, worked hard to give birth to the tool that was intended to be the most complete DeFi solution within Cosmos, allowing users to profit from the latest tools in decentralized finance, except this time on a large scale. It would be Ignite who would work on the back-end and create the Gravity DEX liquidity module, launched last July 2021, while B-Harvest would be in charge of developing the front-end under the name Emeris.
However, after not obtaining the expected results or generating the profitability that was intended, and with the concern of having to increase ATOM inflation to generate the Gravity DEX rewards, a proposal was launched to finally migrate Gravity DEX to another independent network.
And so Crescent Network was born! Crescent is not only the name of an independent blockchain, but also the name of a DeFi product that will consist mainly of three functionalities focused on boosting capital and managing the risks derived from decentralized finance in the best way: Crescent DEX, Crescent Boost and Crescent Derivatives.
CRE Token Distribution: Tokenomics
To better understand the Crescent tokenomics, it is important to know how the tokens will be distributed and over what time period. In total, 1 billion CRE will have been released by 2032, that is 10 years from now.
An amount of 100M of CRE was earmarked for the airdrop, which would be distributed among the community, and another 100 million CRE for a strategic reserve. On the other hand, there is 200 million CRE earmarked for the Crescent team, which will be released progressively over 10 years. This last allocation will be used both for developers and for the development of future features that are yet to be released on the network.
In the CRE distribution, the largest percentage distributed corresponds to that allocated to ecosystem incentives, leaving a total of 530 million CRE to be distributed among the community by way of incentives for Crescent DEX in a first launch.
It is important to remember that, although these data were presented in a first revision of the project, they may change, and that is when governance will come into play.
The key elements of Crescent Network
Crescent DEX
Crescent's decentralized marketplace, known as Crescent DEX, is not only an automated marketplace (AMM), but also applies orderbook estrategies. You can choose whether to create purchase orders or just trade. This makes it the first decentralized cryptocurrency exchange with the ability to place buy and sell orders in the Cosmos ecosystem.
Let's see what are the main branches that have been enabled at the Crescent DEX:
Swaps: you will be able to make swaps between different assets. Either to buy CRE, or to reach any other asset of your interest.
Staking: liquid staking is available on Crescent. When you're staking CRE, you receive bCRE in return. This helps to keep generating profits at the expense of your staking tokens. The bCRE token represents the staking amount plus rewards.
Farming: earn rewards for adding liquidity to the pools available on the platform and allowing other people to access those funds. One of the possibilities offered by Crescent consists of adding CRE and bCRE at the corresponding pool to earn a high percentage of annual profit (APR). This way, Crescent ensures its stability.
Governance: as a CRE token holder, you can participate in the community's proposals and help decide the direction Crescent will take.
Crescent Boost and Crescent Derivatives:
Crescent DEX is a product that allows to provide liquidity, staking and diversify your portfolio. However, Crescent goes further and intends to release two complementary products to offer a complete DeFi experience: Crescent Boost and Crescent Derivatives.
Crescent Boost is a new feature that will soon be available within Crescent. It consists of a combined product where leveraging, lending and hedging will be available. This will allow DeFi strategies to be taken to a more advanced and risky level, not advisable for those just starting out. The higher the risk, the higher the profit, and this is why many users are eagerly awaiting its launch.
There is no official documentation yet on the functionalities that Crescent Derivatives will bring, but it will perfectly complement Crescent Boost to continue to increase the returns on tokens derived from your assets.
The Crescent Airdrop
Fortunately for ATOM delegators who had their tokens staked on 1st January 2022, the famous Crescent airdrop was announced. One of the main reasons why Gravity DEX would migrate to another network lay in the concern of increasing ATOM inflation in the DEX incentive and airdrop distribution. Now, Crescent is independent and distributes incentives and airdrops in CRE, without directly affecting the main network of the Cosmos ecosystem.
By simply participating in ATOM staking, you will unlock the first mission, receiving 20% of the total CRE available to claim.
The following tasks consist of adding CRE liquid staking, swapping in Crescent DEX, adding liquidity to the bCRE pool and voting in the Crescent's governance.
What's next for Crescent
Counting on the potential of the tools brought by Crescent in a fully decentralized way, and taking into account the great leaders behind the creation of the project, Crescent promises to bring a good product to the market. However, it will have to live up to expectations!