CrowFi Knowledge Center
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What is a CEX / CeFi?

A CEX - centralized exchange is a platform that offers a convenient on and off ramp of your local currencies, such as the US Dollar or Euro, which allows cryptocurrency investors to buy and sell crypto assets on the live market using FIAT currencies or other cryptocurrencies like Bitcoin. CEX are sometimes referred to as the middleman for investors by offering an order book service that pairs each buyer with a seller - and vise-versa. An easy way to think about this topic is as follows; when you use a credit card at any vendor, you are allowing the credit card company to be the middleman between you and the vendor. This is similar to the way centralized exchanges work.

CEX normally offers a better trading experience by providing a simplistic user-friendly interface that allows the trader to easily understand, place trades, and view balances. Some CEX's offer premium features like leveraged trading, limit orders, and stop losses.

Examples of CEX: Crypto.com, Binance.com / Binance.US, Coinbase.com

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What is a DEX / DeFi?

A Decentralized Exchange (DEX) is a peer-to-peer marketplace where crypto traders can directly transact with each other without the need of a middleman/intermediary. While transactions on a centralized exchange are recorded on the exchange's database, DEX transactions are settled directly on the blockchain.

Unlike centralized exchanges, DEX's don't allow for exchanges between FIAT and crypto.

Arguably, the most notable differences between the two is that CEX's offer a more user-friendly interface, crypto to FIAT on/off-ramping and a limited but vetted cryptocurrencies whereas DEX's offer a vast variety of unvetted tokens in their infancy, anonymity, speedy transactions and trader's funds are stored directly on their own wallet.

Examples of Decentralized exchanges :
Uniswap on Ethereum
PancakeSwap on Binance Smart Chain
CrowFi on Cronos

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What is a crypto wallet? (hot / cold)

A crypto wallet is defined by a unique code that represents its “address” on the blockchain. The wallet address is public, but within it is a set of private keys determining ownership of the balance and the balance itself. There are different forms of wallets such as software, hardware, paper, or other forms. Furthermore, there are two types of wallets, referred to as either “hot” or “cold” wallets. The difference between the two is that the hot wallet requires an internet connection whereas cold wallets do not require one.
Examples of hot wallets are : Exchanges, MetaMask, Trust Wallet, Phantom Wallet

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What is a smart contract?

When a contract is written in a computer code, as opposed to traditional legal language, it is deemed a smart contract. This programmed contract is set up to execute, control or document relevant events or actions automatically according to the agreement, thus allowing parties to agree to complex terms without needing to trust each other and without involvement of third parties.

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What is Web 1/2/3?

The first version of the world wide web is the Web 1.0 where users were limited to reading information provided by the content producers. An example of Web 1.0 are static websites and personal sites.

The Web 2.0, also referred to as Social Web, was not limited to reading information only but rather allowed users to communicate with other users. This means that every user can be a content creator as content is distributed and shared between sites. Some of the famous Web 2.0 applications are Facebook, Twitter and YouTube

The Web 3.0 , also known as "Semantic Web" is also referred to as the future of Web. The purpose of Web 3.0 is to make the Web readable by machines rather than only by humans, and this is accomplished thanks to a Metadata system. Other technologies such as Machine Learning and Artificial Intelligence are also found in Web 3.0, Apple's SIRI being one example of such application.

A simple guide in distinguishing the difference between Web Version is as follows:

Web 1.0 = Read
Web 2.0 = Read-Write
Web 3.0 = Read-Write-Execute

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Known Scams: Rug Pull / Honeypot

Crypto has opened up new and revolutionary ways of investing, but along with the potential for great returns comes great risk of losing money to scams. Investors can increase their security by avoiding the red flags of crypto scams and rug pulls. Common warning signs of crypto scams are fake testimonials, unlicensed or unregistered sellers,promises of guaranteed high returns, websites or messages having many spelling/grammar errors and depicting rapidly increasing investment accounts, among others.

Rug pulls are inherently more difficult to spot as there are various ways in which the founders/team members of a project are able to do that. Most frequently used method is by using smart contract functions maliciously. Investors can mitigate some of these risks by taking the time to do proper research on various aspects such as scanning the smart contract for malicious functions (audits), research team members (KYC), search the website and project documentations such as gitbook or whitepaper.

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How to move funds from a CEX onto a DEX.

Any centralized exchange offers the withdrawal and deposit of cryptocurrencies, however, when moving funds from a centralized exchange onto a decentralized exchange, it is imperative to know which network you want to move onto. For instance, if you want to move funds from any exchange onto the Binance Smart Chain, the user must send cryptocurrencies which are supported on that network, in this case BEP-20 tokens. For the Cronos chain, users must send Cronos compatible tokens and this is applicable for any other network such as Ethereum, Avalanche, Fantom, Tron and so on.

Each centralized exchange varies in what networks they support and not all cryptocurrencies are available in any network. For instance, certain Cronos chain tokens such as CRO and USDC are supported by Crypto.com whereas Cronos chain network is not supported on Binance.
In comparison, Bep-20 tokens such as BNB, USDC and USDT are not only supported by Binance but also on Crypto.com

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What are gas/gas fees?

Gas is essentially a fee that is required to execute a transaction on the blockchain. Fees vary according to blockchain and are paid in native tokens. For instance, CRO is the native token for the Cronos chain and thus all gas fees are paid in CRO.

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What is a blockchain explorer?

A blockchain explorer is an online tool for exploring the blockchain of a cryptocurrency, where you can watch and follow all the transactions happening on the blockchain in real time. Block explorers can serve as blockchain analysis and provide information such as total network hash rate, coin supply, transaction growth, etc.

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What is a bridge and how to use it?

A cryptocurrency bridge is an interoperability protocol which allows the transfer of tokens or data from one network to another. Bridges generally use a mint-and-burn protocol to keep the tokens supply constant on all platforms. When a token leaves one blockchain, said token is burned or locked and an equivalent token is minted on the opposite blockchain. When said token is moved back to its original network, the newly minted equivalent token is burned or locked. Thus keeping a constant supply across all platforms.

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What is staking?

The concept of Crypto staking is primarily used in proof-of-stake blockchain and it involves committing holdings to support a proof-of-stake blockchain network and confirm the transactions. For their contribution to the network, participants are rewarded with tokens and thus earn passive income on their holdings. As the technology evolves, however, more applications have been making use of this concept such as launchpads, NFT's and most notably in the DeFi sector. For instance, most launchpads have adapted a staking system where participants are required to stake a set amount of tokens to be eligible for a guaranteed allocation in projects using said launchpad.

Compared to traditional markets, staking cryptocurrencies offer much higher returns mainly because there are no third party fees and a portion of all transaction rewards go directly to the staking pool as rewards to participants.

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What are liquidity tokens?

For decentralized exchanges (DEX) that offer an automated market makers protocol (AMMs) like Uniswap, Sushi, and Crow Finance, crypto liquidity providers must contribute/stake assets to crypto liquidity pools (LP). When tokens are deposited into a crypto liquidity pool, the platform automatically generates a new token that represents the share the depositor owns of that pool. This is called liquidity provider tokens (LPT) . Liquidity pool tokens are held in providers' DeFi wallet until they are removed from the Liquidity Pool. In that case, the LPT's are reverted back to the pair of assets provided according to the participants share of the pool.

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What is farming?

Farming is the practice where a liquidity provider stakes or lends a pair of crypto assets to a smart contract based liquidity pool which can generate rewards in the form of additional cryptocurrency for the provider. The rewards paid are normally a percentage of the transaction fees paid by traders.

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What is liquidity farming?

Funds are locked, or staked, into smart contracts that control the liquidity pools DeFi lending protocols rely on. These are simply pooled funds from which borrowers draw funds. Pool members earn a share of the interest received based on how much they have locked.

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What is liquidity mining?

Liquidity mining is a process in which crypto holders lend assets to a decentralized exchange in return for rewards. These rewards commonly stem from trading fees that are accrued from traders swapping tokens.

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Terminologies

DYOR
Acronym for “Do Your Own Research”

NFA
Acronym for “Not Financial Advice”

KYC
Acronym for “Know Your Customer”.

DOX
Dox or Doxing is the act of publicly revealing private and personal information about an individual or organization

HODL
Acronym for "Hold On for Dear Life"

ATH
Acronym for "All-Time High"

TVL
Acronym for "Total Value Locked"

DAPP
Acronym for "Decentralized Application"

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Farming and Risks

Farming is a little bit different than single staking. Farming has impermanent losses to be taken into consideration. The idea is that the longer you stake LP, not only do you earn Crow but you also earn a small portion of the transaction rewards within that farm, which over time outweigh, the impermanent losses as long as the fees over time outweigh the gains or losses within the token price action.

Single staking is definitely safer as it doesn't have Impermanent losses and you are basically using your crow to farm more crow, but it's not as lucrative.

Please study this article by heart before jumping on the bandwagon!

https://academy.binance.com/en/articles/impermanent-loss-explained

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HOW TO SINGLE STAKE

This is how you can single stake your
$CROW tokens:

1️⃣ Go to our single stake website: crowfi.app/pools and connect your wallet to the dApp.

2️⃣ Choose which Pool do you want to stake your $CROW tokens (Auto CROW vs Manual CROW)

3️⃣ Enable the chosen pool by pressing "Enable".
You will see your DeFi-Wallet window asking for approval. Press "Confirm".

4️⃣ After the contract is approved, you can add the amount of $CROW tokens you wish to stake.
This can be done either manually, or by using the SLIDER with different % -amounts of YOUR CURRENT HOLDINGS
[25%] [50%] [75%] [MAX]

5️⃣ When you have filled in your preferred staking amount, press the [CONFIRM] -button.

6️⃣ After you have done all this, you should see a pop-up message saying that you have successfully staked your tokens.

7️⃣ Congratulations! You have now successfully staked your $CROW tokens!

From now on you can start following your profits from the chosen pool information window.

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How to Farm

1️⃣ Provide a liquidity pair by going to
crowfi.app/liquidity and connect your wallet to the dApp.

2️⃣ Click "+ Add Liquidity" and select two separate currencies you would like to pair. NOTE: You will need to provide equal $$ amount of each currency.

3️⃣ Enable the chosen LP token by pressing "Enable".
You will see your DeFi-Wallet window asking for approval. Press "Confirm".

4️⃣ After contract is Approved, go to crowfi.app/farm where you can add the amount of LP tokens you wish to farm. This can be done either manually, or by using the SLIDER with different % amounts of your current holdings [25%] [50%] [75%] [100%]

5️⃣ When you have filled in your preferred amount, press the [CONFIRM] button.

6️⃣ After you have done all this, you should see a pop-up message saying that you have successfully staked your tokens.

ℹ️ Congratulations! You have now successfully staked your $CROW LP tokens!

ℹ️ NOTE: Please understand the potential risk of impermanent loss before farming.

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How to bridge USDC from BSC to Cronos Chain

1️⃣ Go on Poocoin, swap BNB for USDC 👉 LINK (at this point the USDC is still on BSC network).

2️⃣ Open Bridge 👉 LINK

3️⃣ Connect your metamask wallet.
Click on “Unlock wallet”. A prompt will let you choose which wallet on metamask.

4️⃣ Choose BSC to CRONOS bridge. Enter total amount of USDC to send. Enter your Cronos wallet address in the recipient line. Click approve then press send.

5️⃣ Now you have your USDC on the CRONOS network and you can send from there to the wallets above.

ℹ️ Alternatively use crypto.com to sell/buy and send USDC (Cronos chain) to your wallet and then to the wallet addresses above.

ℹ️ USDC Contract Address:
0xc21223249CA28397B4B6541dfFaEcC539BfF0c59

ℹ️ How to setup Metamask for Cronos network: 👉 LINK

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NOTE: This is only for investors who participated in CrowFi Pre-Sale.

ℹ️ If you participated in CrowFi pre-sale you were airdropped $PCROW (PreSale Crow):
0x6AA7C188E9b9C8006B4DAe6b7Dc72C2790789bC6

$PCROW is used to swap for actual $CROW Tokens.

1️⃣ Go to crowfi.app/privatesales and connect your DeFi wallet.

2️⃣ You will see three options (Seed Sale, Private Sale, and Public Pre-Sale). The sale you participated in will provide information under each sale category about your vested tokens.

3️⃣ Click "Enable Contract" after approval you can click "Claim" button.

4️⃣ After contract approval you will have received your vested $CROW!

ℹ️ Congratulations! You have now successfully claimed your $CROW tokens!

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