Fringe Finance Mainnet launching! Fringe Finance is very proud to announce that the first release of the non-custodial Primary Lending Platform (PLP) will be finished and live on the Ethereum Mainnet for public access on June 24th, at 11:00 PM GMT.
Starting from this date, lenders may deposit $USDC to the Primary Lending Platform to earn interest, while borrowers may deposit their whitelisted tokens as collateral to take out $USDC loans.
The Primary Lending Platform’s launch will be celebrated with a Metaverse Yacht Party, which will start as the platform goes live.
A key part of Fringe Finance’s mission is to allow holders of a wide range of tokens to optimize their capital. Today’s initial release is the start of a journey whereby the PLP will progressively add support for a long list of tokens as collateral.
Fringe Finance Mainnet release, supports the following collateral assets by the PLP:
Each month Fringe Finance will announce support for additional sets of collateral assets.
Fringe Finance will be adding support for additional popular and reliable capital assets over time. At this time, the only capital asset for lending is $USDC.
Moreover, Fringe Finance is intentionally only supporting popular and reliable capital assets. Given each new capital asset fragments liquidity between multiple lending pools. Its selective approach results in less volatile interest rates and lowers interest rate slippage.
Currently, the PLP supports variable interest rates. The variable interest rate mechanism is dependent on the supply of lenders’ capital versus the demand for loans taken out by borrowers. Anticipate that there will be some initial high variability in interest rates for a short period. This could represent a unique opportunity for lenders and borrowers as the market initially equilibrates on an interest rate.
Abundance of caution
For the sake of caution, Fringe Finance will initially set low debt limits (Max Borrowing Capacity). For each collateral asset before increasing them over the coming weeks to their target values.
Crucially, rather than limiting the borrowing capacity of individual borrowers, debt limits only limit the total amount of $USDC enabled to be borrowed against each collateral asset by all borrowers combined. Additionally, the goal of these initially conservative parameter values is to ensure that in these early days of the PLP, the platform is working as expected and funds are safu.
ABOUT Fringe Finance
Fringe Finance is a decentralized money market. Designed to unlock the capital spread in crypto assets regardless of their capitalization and supported network. With a next-generation DeFi lending & borrowing ecosystem, Fringe aims to unlock the dormant capital from traditional financial markets and all-tier cryptocurrencies.