Fringe Finance is a lending protocol that aims to engage different cryptocurrency assets from Tier 0 to Tier 2 and stablecoins in the decentralised blockchain economy. By doing that, Fringe Finance will grant the holders of those assets the ability to put their holdings to work and generate passive income.
According to approximate estimates, there are more than dormant $50 billion locked in those assets. And this liquidity could be used as collateral for different needs and profit-making opportunities available in the DeFI space. As such, Fringe Finance will provide a set of options including borrowing, lending and staking for its users.
Opportunities for profit on the platform
The platform will have two native tokens: the USB stablecoin and the FRIN governance token. The platform will also have two whitelists for assets that can be collateralised and for stablecoins that can be loaned out. The former will include Tier 0 (wBTC, ETH) to Tier 2 ERC-20 assets, and the latter will include the well-established stablecoins.
The USB stablecoin will have a fluid total supply because it can only be acquired by providing collateral on the platform and will depend on its amount. When a user thus acquires the USB stablecoin, they can use it to take out a loan in a different stablecoin or stake USB in the USB staking pool to generate passive income.
Lending and borrowing
Depending on what kinds of assets a user holds, they will be able to use them differently. The only mandatory condition to be complied with is that those assets have to be whitelisted.
Thus, altcoin holders will be able to collateralise their assets and acquire the platform’s native USB stablecoin. It will enable them to either stake it on the platform to generate passive income or use it to get a loan in a different stablecoin.
The holders of the popular stablecoins will be able to add them to the platform’s lending pools and earn on the interest of loans given out to the borrowers on the platform. Their individual income will then depend on their share in the pool’s capital. The higher their share is, the higher their income will be and vice versa.
The FRIN governance token
The holders of the platform’s governance token FRIN will be able to earn by participating in decision making of Fringe Finance and taking part in the Stake and Reward program on the platform. To do the latter, they will need to stake their token in the FRIN staking pool.
Rewards for staking the FRIN token will be distributed in proportion with every individual staker’s share in the FRIN staking pool.
Security and partnerships
The safety of users’ funds in the smart contracts of Fringe Finance will be guaranteed by technical audits of the Fringe Finance smart contracts by two highly qualified smart contract auditors CyberUnit and HashEx.
The partnership with Union Finance will also allow Fringe Finance users to protect their collateralised liquidity against volatility by allowing them to deposit additional liquidity to avoid liquidation or withdraw the excess.
Fringe Finance has equally made several partnerships with major blockchain projects. Fringe Finance’s partners currently include such blockchains and DeFi protocols as TomoChain, Chainlink, Polygon, NEM, Origin, Waves, Elrond and REN.