Three Ways to Participate in Chromia DeFi
DeFi opportunities are live and ready to be explored on mainnet! This article will give you the info you need to get started.
Understanding Chromia’s Multi-Chain Structure
Unlike monolithic blockchains where all tokens and activity reside on a single chain, Chromia uses a multi-chain structure in which each dapp runs on its own dedicated blockchain.
Because tokens can only be on one chain at a time, users must move them to the dapp chain where they want to use them.
Chromia makes this process easy through Chromia Vault (our official wallet and dapp browser), which allows users to transfer assets instantly and for free between chains using the ‘Transfer’ tab.
Throughout this article, you’ll see references to different chains such as Economy Chain, ColorPool DEX Chain, and UdonFi Finance Chain. These are individual chains on mainnet.
Onboarding to Mainnet
Onboarding Using CHR
For most users, the easiest and most efficient way to get started is by onboarding with native CHR on Economy Chain. This can be done by bridging from Ethereum or Binance Chain, withdrawing directly from an exchange that supports Chromia Mainnet, or using a fiat on-ramp service like Transak. For full guides with visual aids, visit our Vault Knowledge Base, which includes five tutorials to help new users onboard successfully.
Onboarding Using USDC via ColorPool Bridge
A secondary method of getting assets onto mainnet is to bridge USDC from Binance Chain to ColorPool using ColorPool’s official bridge. Step by step instructions can be found in ColorPool’s documentation.
Now that we’ve covered the basics, let’s look at three ways you can get involved today!
- Stake Native CHR
Location: Economy Chain
https://vault.chromia.com/en/staking/
If you’ve onboarded using native CHR, your tokens arrive on the Economy Chain: the perfect starting point for staking. Staking is a great option for beginners or anyone who prefers a simple, hands-off way to earn a little extra while holding CHR.
Staking is fully integrated into Vault, making the process fast and user-friendly. You can stake your CHR, choose a provider to delegate to, and start earning with just a few clicks. When you stake your CHR, you’ll earn:
- 3% APY base rewards, plus
- An additional “reward share” - a portion of the fees and additional rewards earned by the provider you delegate to.
Some important things to note about staking:
- There is a two-week holding period before you can withdraw your staked CHR. Stakers must request the withdrawal, wait two weeks, and then they can retrieve their tokens.
- Once your CHR is staked, it cannot be used elsewhere (for trading, dapps, transfers, etc.) until it is withdrawn from the staking contract.
Staking on mainnet will also enable users to participate in governance once the upcoming Chromia Governance module is released. Planned for launch before the end of this year, the module will allow CHR stakers to propose and vote on new providers as well as grants. For more details, check out our recent blog post on the topic.
- Trade and Provide LP on ColorPool
Location: ColorPool DEX Chain
Trade
ColorPool is the leading decentralized exchange (DEX) on Chromia, supporting USDC, CHR, COLOR, ALICE, and D tokens. Trading on ColorPool offers the fastest and easiest way to swap between all Chromia ecosystem tokens, entirely contained on Chromia mainnet.
Thanks to Chromia’s innovative economic model and ColorPool’s “Zero Gas Credit System”, users can make hundreds of trades and other actions per day without paying gas fees.
Earn by Providing Liquidity
For those looking to take it a step further, users can provide liquidity and participate in ColorPool’s farming campaigns, earning attractive APY rewards paid in COLOR tokens. These farming incentives are designed to promote deeper liquidity and long-term engagement within the Chromia ecosystem.
APR rates can reach as high as 60%+ for liquidity providers in the CHR/USDC pool. See the screenshot below for available farms. Please note that APR rates are variable and may fluctuate depending on the total liquidity and the number of participants in each pool.
To learn more about managing liquidity and getting started with farming, visit the Official ColorPool Docs. There, users can find instructions on adding liquidity, staking and unstaking, and harvesting rewards.
- Lend and/or Borrow Assets on UdonFi
Location: UdonFi Finance Chain
UdonFi is Chromia’s leading borrowing and lending platform.
Udon Finance functions through a system of decentralized liquidity pools that facilitate lending and borrowing activities. Liquidity providers deposit assets into these pools, creating a shared source of funds from which borrowers can draw. Interest rates within each pool are determined algorithmically and adjust dynamically based on market utilization and liquidity demand.
When users supply assets to a pool, they receive corresponding aTokens, which represent their share of the pool. These tokens automatically accrue interest over time, reflecting the yield generated from lending activity.
Users seeking to borrow must first provide collateral in the form of supported assets. The borrowing capacity is determined by parameters such as Loan-to-Value (LTV) ratio and Health Factor, which are designed to maintain protocol stability and reduce default risk.
Earn With the PreUdon Rewards
Ahead of the official launch of the Udon token, the platform is running an open-ended PreUdon Rewards Program. PreUdon tokens are designed to be held until the official token launch, at which time a migration event will enable a seamless and guaranteed conversion to the native Udon token.
To learn more about the PreUdon program, refer to the corresponding section in UdonFi’s Official Documentation.
See the screenshot below for available assets to supply and borrow. Please note that APR rates are variable and may fluctuate depending on the total liquidity and the number of participants.
Coming Soon: Liquid Staking
UdonFi is also developing a Liquid Staking program, which will expand the platform’s offerings and provide additional yield opportunities for users. Further details are available in the Liquid Staking section of their documentation.
For questions, updates, and community discussions, visit UdonFi’s Official Telegram Channel.
About Chromia
Chromia is a Layer-1 relational blockchain platform that uses a modular framework to empower users and developers with dedicated dapp chains, customizable fee structures, and enhanced digital assets. By fundamentally changing how information is structured on the blockchain, Chromia provides natively queryable data indexed in real-time, challenging the status quo to deliver innovations that will streamline the end-user experience and facilitate new Web3 business models.Website | X | Telegram | Instagram | Youtube | Discord | Reddit | LinkedIn | Facebook |