Welcome to this post, where we are going to see how MM Finance works, one of the main platforms that we find in the Cronos network.
MM Finance is currently the number 2 DEX in Cronos, but very close to VVS Finance. With more than $800 million of LTV or total value locked up. Furthermore, if we take into account its other platform, MM Optimizer, which has $400 million LTV, we could say that MM Finance has more capital than VVS Finance, and therefore, it is the most capitalised platform in all of Cronos.
What is MM Finance
MM Finance is the most popular AMM & DEX in Cronos Chain with the highest trading volume. They have the lowest commissions in Cronos Chain at only 0.17%. In addition, they are the FIRST to introduce Protocol Proprietary Liquidity (POL) in their DEX!
MM Finance is a fork of Uniswap, in the same way that we have seen in other networks very similar platforms such as Pancakeswap, sushiswap, quickswap, biswap, spookyswap and many others.
If we compare the LTV of MM Finance with its main competitor, VVS Finance, we can see that the latter is in 2nd position, having less LTV. Although the LTV varies, both platforms are very close to each other and are very similar, with small differences between them. So let’s see what’s different and what MM Finance can offer you compared to its main competitor.
In trade we find the part of swap in Exchange and to create LP Tokens in liquidity to do farming and get a profit with your cryptocurrencies. In this guide, we are not going to cover how it works, as we have already done it in the VVS Finance guide that you can find here.
In farms you will find the different farms with LP tokens that are available in MM Finance, with good annual returns. In apr, you can see the annual % that you will receive when placing that LP token. And further to the right a multipler, which is the amount of incentives that LP token has in comparison to the others.
Once you have deposited your LP Tokens, you will receive the MM platform token as a reward, so it is something to keep in mind. Because they tend to be very inflationary tokens, and if they are halved in price, you’re actually getting half the annual apr. So keep this in mind.
You can find a wide variety of LP Tokens, both with MM or with different cryptocurrencies that can be interesting to farm.
In Pools the operation is very similar, but instead of LP, you deposit a single token. In this case, the token of the MM platform. You can find pools where you deposit MM and get more MM, or others where by depositing MM, you get another cryptocurrency. And it is a very useful way to get another cryptocurrency instead of buying it, depositing your MM in that pool.
You will see quite high %.
In launch, we find the launchpad part, where we can access new projects before they are released publicly.
Here, we will have to buy the Savanna token (SVN) to access these new token launches. The way it works is simple, the more tokens you deposit, the more of the token you get. The unused amount of your SVNs will be returned to you once the launch is over. Each release has a price per token, and is split between the total amount invested in that release.
It is a good way to access projects that you think may have good potential before their token is publicly traded, and get it at the starting price.
You will be able to see in finished all the launches that have been made previously in MM Finance, and see if they have been profitable launches or not for the users. You can also see the amount that was deposited in each launch to be able to estimate what you can receive if you invest X amount in the next launches.
The platform has other functions, but they are not found within the platform. For example, we find in earn if we click on vaults, we will be redirected to the MM Optimizer page, where we can optimise the farming of LP tokens or a single token on this page.
Also, in games we find different games that you can play on other sites. In DEFI, there are linked different sites with different farming or staking strategies within the Cronos network, which are related to MM Finance. And finally, we also find platforms for loans or yield farming with leverage that you can find on the right hand side of the menu, which are other platforms linked to MM Finance.
I hope this has helped you to learn more about how one of the main DEX of Cronos works. Remember that if you don’t have an account with binance, you can create one just below.