Platform overview
Participant | Value Proposition |
|---|---|
Lenders can be institutional lenders, high net-worth individuals or stablecoin holders who wish to receive more attractive interest rates as compared to what they can receive in the traditional banking system. They do this by lending out their USD holdings on the Primary Lending Platform in the form of whitelisted USD-pegged stablecoins. | |
Borrowers who have conviction of the upside price opportunity of their assets can now put them to productive work instead of just waiting idly for their price to appreciate by taking out stablecoin loans on the Primary Lending Platform. They can also mint USB stablecoins on the USB Stablecoin Platform and deploy them as they see fit elsewhere in the crypto economy. | |
An altcoin project enjoys the same benefits as a Borrower by deploying their treasury into the platform so that they can take out loans for project expenditure or invest in new initiatives without needing to sell their project tokens.
This has the additional benefit of removing from market supply the tokens they use as loan collateral, resulting in a positive impact for the price of their project token | |
Any participant in the crypto economy who holds the USB stablecoin can deposit their USB in the USB Stablecoin Saving facility to receive interest payments. | |
The Fringe Finance Staking Platform aims to offer rewards for staking of various assets to incentivize token holding and staking to benefit the Fringe ecosystem and community. Staking assets will include FRIN tokens, relevant liquidity provider tokens, fTokens (Fringe Finance’s interest-bearing tokens received by lenders) and others. Staking rewards will be offered variously in relation to both long-term and short-term staking incentivization schemes. FRIN token holders can opt to stake their FRIN tokens to receive rewards derived from fees charged on the Fringe Finance Platform. FRIN Stakers will also be able to participate in directing the evolution of the platform via voting for DAO proposals. | |
Liquidators help keep the platform stable by liquidating positions that fall below minimum collateralization levels – and receive the liquidated collateral assets at a discount – which they can sell on the open market to realize a profit. |
Fringe Finance's market differentiator is to provide holders of low liquidity coins with a means to act as borrowers by accessing collateralized loans of stablecoins and to mint the Fringe Finance stablecoin (USB) to use as they see fit within the broader DeFi economy.
Lenders can also enjoy attractive interest rates by offering to lend out their stablecoin capital on the platform.
Fringe Finance also offers incentives for Liquidators to help stabilize the platform, for USB stakers to earn attractive interest rates and for FRIN token ($FRIN) holders to stake their tokens to earn rewards from fees charged on the Fringe Finance platform.
Finally, the Fringe Finance platform provides temporary yield farming opportunities to encourage various actors to interact with the platform, promoting awareness and adoption.
In all, the Fringe Finance platform offers a unique opportunity for low-liquidity coin holders and for all other participants who interact with the platform in alignment with this endeavor. The Fringe Finance Platform offers an immediate-term, sustained model of reciprocal economic incentives for all participants to establish and support this vision.
And with the Fringe Finance platform’s future transition to governance by the community via the Fringe Finance DAO, the core platform can evolve and extend over time to add more value to holders of speculative altcoin assets which will lead to more value for $FRIN holders.
The Fringe Finance platform consists of the following facilities:
- Primary Lending Platform: A facility where lenders loan out their stablecoins and where borrowers borrow stablecoins against their altcoin collateral.
- USB Stablecoin Platform: A facility where borrowers mint and borrow stablecoins against their altcoin collateral and where USB stablecoin holders can stake USB to earn interest.
- The FRIN Staking & Rewards Platform: Where FRIN token holders can stake their $FRIN to earn rewards from the fees collected by the Fringe Finance platform.
For further description of the platform, see the Fringe Finance Whitepaper available on our homepage.