Fringe Finance is a groundbreaking platform dedicated to unlocking the capital in speculative cryptocurrency assets as it achieves this by providing loans and leveraged trading facilities collateralized by these assets.
The Cryptocurrency Market
The cryptocurrency market is vast and diverse, with numerous cryptocurrencies ranging from well-known, high-liquidity coins to smaller altcoins with niche use cases and while larger cryptocurrencies enjoy broad support from many DeFi platforms, smaller altcoins often face challenges in accessing the DeFi ecosystem due to their lower liquidity and market capitalization.
Fringe Finance Solution
$FRIN solves this problem by accepting a wide variety of collateral assets, including smaller altcoins, for loans and leveraged trading. Despite the higher volatility of these altcoins, Fringe Finance implements various borrowing parameters and mechanisms to ensure platform stability and financial protection. These parameters include platform-wide maximum borrowing capacities and automated computation of loan-to-value ratios (LVRs) for each collateral asset, considering metrics such as historic volatility and available liquidity.
Key Features and Vision of Fringe Finance
$FRIN‘s vision extends beyond loans and leveraged trading as it includes cross-chain collateralization, fixed-interest loans, lending against NFTs and LP tokens, a decentralized backend, decentralized UI, and embedded DeFi insurance, making Fringe Finance a comprehensive platform that caters to the growing crypto economy.
Benefits for Participants
The platform offers compelling benefits for various participants:
- Lenders: Earn attractive interest rates by lending out their crypto assets.
- Borrowers: Put their assets to work by taking out loans instead of waiting for price appreciation.
- DAOs and Project Treasuries: Borrow funds or lend out their treasury assets, benefiting from price impacts on their tokens.
- USB Saver: Earn interest by depositing USB stablecoins.
- Staker: Earn rewards for staking various assets in the Fringe ecosystem.
- Liquidator: Help stabilize the platform by liquidating positions that fall below minimum collateralization levels.
- Traders: Gain leveraged exposure to maximize potential gains through leveraged trading facilities.
Conclusion
Fringe Finance offers a unique opportunity for holders of both high-liquidity and low-liquidity coins, along with other participants in the crypto economy as its sustainable model of reciprocal economic incentives and future governance by the community through the Fringe Finance DAO position it as a valuable player in the DeFi ecosystem, promising more value for $FRIN holders.
References
Fringe Finance is now listed on Cryptopia! 🎉