The Primary Lending Platform
The Testnet deployment of Fringe's Primary Lending Platform
The Primary Lending Platform (PLP) is a lending/borrowing facility. It allows Lenders to deploy their capital to earn interest and allows Borrowers to take collateralized loans from the Lenders’ pool of funds. The two diagrams below illustrate the key functions, participants, and their use cases in the PLP:
Functioning of the Primary Lending Platform
Primary Lending Platform use cases
The PLP is intended to be similar to the Compound platform, with the following key differences:
  1. 1.
    The Primary Capital Pool is limited to select stablecoins.
  2. 2.
    Primary Collateral Safes accept a larger variety of assets (Tier 0 – Tier 2).
  3. 3.
    Platform fees will be distributed as rewards to FRIN token stakers.
Collateral types accepted into Primary Collateral Safes are assigned a Loan to Value Ratio (LVR) through our approach to parameter asset modeling.
In the next pages of this section, we will explore in detail the user roles and mechanisms of the Primary Lending Platform.
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