DeFi lending protocol C.R.E.A.M. Finance is launching a protocol-to-protocol flash loan product through its Iron Bank, with the aim to increase capital efficiency and expand the scope of decentralized finance.
DeFi protocols will now be able to take out flash loans ––uncollateralized loans that need to be repaid at the same block that they are taken out–– across assets held in C.R.E.A.M’s Iron Bank. The Iron Bank, which has $425M in total value locked, is a lending protocol which allows other protocols to borrow from its pools permissionlessly via Alpha Homora v2 and Yearn Vaults.
“More assets than ever are now available for flash loans, and at cheaper rates than before,” Leo Cheng, Co-Founder and Project Lead at C.R.E.A.M. Finance, said in an interview.
Flash Loans on C.R.E.A.M. cost 0.03%, compared with 0.09% on Aave and 0.3% on Uniswap.
While protocol-to-protocol flash loans will be available via the Iron Bank, users will be able to access the product via Cream v1 at app.cream.finance across Ethereum, Binance Smart Chain, and Fantom.