Fringe Finance is a lending platform that aims to engage all crypto assets, including those with smaller markets, in the DeFi economy, providing easy access to decentralized financial markets.
Formerly known as Bonded Finance, Fringe Finance focuses on unlocking the dormant multi-billion capital locked in volatile cryptocurrency assets by providing loans guaranteed by them. The platform aims to accept the greatest assortment of altcoins as collateral in the market to date.
Fringe Finance proposes a full set of borrowing, lending, and staking options, such as variable and fixed-interest loans, as well as extra insurance and saving solutions. It also intends to provide cross-chain interoperability for some of its services.
How does the platform work?
As opposed to what happens with Bitcoin and other cryptocurrencies, the price of a stablecoin always stays the same. Thus, stablecoin holders don’t get an opportunity to profit from speculating on it. Fringe Finance allows users of these coins to earn interest as lenders, while altcoin holders can access stablecoin loans.
There are two options for stablecoin holders within the Fringe ecosystem: the first one is to lend their assets, providing loans for other investors; the second is to stake $USB, the platform’s native stablecoin collateralized by altcoins, and receive passive income.
To earn rewards and interest on Fringe’s Primary Lending Platform, lenders first have to deposit whitelisted stablecoins. Altcoin holders, in turn, can use their holdings as collateral to borrow stablecoins. According to the loan terms, only stablecoins from Fringe’s whitelist are leased out, and the only sort of collateral permitted is Tier-0 (wBTC, ETH) to Tier-2 (well-known but volatile altcoins) ERC-20 assets.
Fringe Finance also plans to allow its users to stake FRIN and USB tokens to earn interest and rewards. Liquidators are also rewarded for their assistance in the stabilization of the platform, while $USB stakers get attractive interest rates. This also offers temporary yield farming opportunities to encourage more users to interact with the platform, increasing brand awareness and boosting mass adoption.
What is the $FRIN token?
$FRIN is the native token of the Fringe Finance platform. Rather than making $FRIN a solely ERC-20 token, the team picked the DS ERC-20 standard, which is comparable to the one used by MakerDAO’s MKR governance token. This allows for Fringe to program stabilization features into its token, to be triggered in emergency cases that threaten the platform.
FRIN token holders can generate passive income by taking part in the FRIN Stake and Reward Program. To become eligible for the rewards offered, they should stake their tokens into the $FRIN Staking Pool. Rewards are then to be distributed among stakers in proportion to their contribution to the pool.
What is the USB stablecoin?
The USB stablecoin is a USD-pegged stablecoin to be used by Fringe’s Lending Platform. The functioning mechanism of the USB Stablecoin, backed by altcoins, is similar to that of the DAI stablecoin.
On the USB Stablecoin Platform, miners can add altcoin collateral into their USB collateral, and get a Line of Credit using the USB stablecoin. USB Collateral accepts Tier-0 to Tier-4 assets as collateral.
The USB Platform allows users to mint USB stablecoins in exchange for the altcoins collateral they have deposited. For users to claim back their collateral, the minter must repay their loan.
Fringe Finance’s partner ecosystem
Fringe Finance has partnered with major players in the world of blockchain technology and decentralized finance, such as REN, Elrond, Polygon, Chainlink, NEM, Waves, Origin, and TomoChain.
Through its partnership with Union Finance, Fringe users will have access to smart contract protection for their deposits. Borrowers will be able to add insurance to their positions and secure themselves against the volatility of their collateral.
Audits and Security
The safety of user data and assets is a top priority for the project. Fringe Finance has demonstrated its commitment to security by partnering with two well-known auditors, CyberUnit and HashEx.
To date, Fringe Finance has struck two dozen prominent partnerships. The joint market capitalization of all Fringe partners exceeds $26 billion, while its own market capitalization is approximately $5 million. Of course, by design, every new platform listing into Fringe has the potential to expose the project to thousands of new community members.
In Summary: You too can start using Fringe.
Despite the fact that the platform has not yet been officially launched, anyone can test its capabilities in its testnet mode. Interested users can find the instructions to do so in here.
With Fringe Finance, beginners and experienced professionals can look forward to a dependable and simple stablecoin lending platform with a wide range of features and a friendly interface. Because of the wide range of altcoins that will be accepted on the platform, it is currently the best option for stablecoin lending.
In addition to $FRIN staking and rewards, Fringe proposes great interest rates for lenders and borrowers, as well as an opportunity for holders to earn passive income via yield farming. The platform will also boast a high level of security and insurance for borrowers, serving to safeguard against the volatility of crypto assets and attaining a higher loan-to-value ratio.