What Is Fringe?
The Fringe Finance platform was created to incubate and deploy experimental, high-yield, smart-contract driven, financial instruments that push the bounds of open finance. Fringe Finance is an algorithmic model that aims to unlock, aggregate and de-risk ~50 billion in dormant value distributed amongst untapped digital assets.
While this allows altcoin holders to put their digital asset holdings to work in the DeFi space, lenders can leverage Fringe to generate passive income by lending their stablecoins to borrowers.
Market participants can also earn crypto on Fringe Finance via temporary opportunities for yield farmers and by staking lender tokens (fTokens), liquidity provider tokens, and the native FRIN token. At the same time, lesser-known altcoin projects can leverage Fringe Finance to list their tokens on the platform, increasing their liquidity and availability within the DeFi sector.
Fringe Coin Storage Key Points
|Coin Name||Fringe Coin|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Fringe Finance platform is already launched but before in May, the project initiated the progressive deployment of the Primary Lending Platform’s component to the Ethereum mainnet. Recently, after completing two independent audits and resolving all related essential issues, the team has released the final smart contracts for its flagship lending facility.
Fringe’s v1 will introduce the project’s Primary Lending Platform – a flagship solution that offers to borrow against altcoin collateral and lending for whitelisted stablecoins. Farmers will get access to additional earning opportunities within a temporary yield farming program designed to raise awareness, attract liquidity, and expand the project’s user base.
How Does Fringe Finance Work?
Let’s dive a bit deeper into the project’s most important facilities to understand how Fringe Finance works, starting with the Primary Lending Platform.
Primary Lending Platform
On the Primary Lending Platform, lenders deposit whitelisted stablecoins. In exchange, the platform mints a proportional amount of fTokens and assigns it to the lenders.
Lenders can redeem their fTokens any time (or optionally sell them on the open market) to receive their original deposit along with interest generated via stablecoin lending during the period.
Managing Risks and Coin Whitelisting
To manage risks efficiently, Fringe Finance leverages external oracles to determine the risk profile of each collateral asset and assign it a tier (between Tier 0 and Tier 2), which will influence its LVR. Higher levels generally include safer and more established coins (e.g., wBTC, ETH), while lower ranks involve riskier and less-known altcoins.
After the v1’s mainnet launch, the project will gradually introduce new features, facilities, and components to expand its ecosystem. In the future, crypto users will be able to access the following core solutions at Fringe Finance.
Yield Farming Program
A limited-time campaign to help kickstart Fringe Finance’s adoption via yield farming incentives, where the project will pay FRIN tokens as farming rewards to lenders for staking fTokens. fTokens are ERC-20 tokens representing lenders’ deposited stablecoin holdings, entitling holders to an increasing quantity of the underlying asset (as interest is accrued over time).
Lines of Credit and PIXT Tokens
Stablecoin borrowers deposit their altcoins as collateral into the Fringe Finance platform. After this, the facility will mint Primary Index Tokens (PIXT) for the borrower.
As a non-transferable token pegged to $1, PIXT represents the borrowing capacity of the user (in USD) arising from his deposited collateral. The maximum amount a user can borrow is calculated by multiplying the value of the collateral by its loan-to-value ratio or LVR (also called LTV).
Borrowers can utilize their PIXT to take out loans in whitelisted stablecoins held in the Primary Capital Pool. Upon repayment of any loan amount, the protocol will return the proportional amount of PIXT tokens to borrowers, which they can use to redeem their deposited collateral (after redemption, the platform burns the borrowers’ PIXT).