The decentralized finance (DeFi) market is taking the financial industry by storm, with banks being shorted by fintech enthusiasts worldwide. DeFi does away with unfair policies, record-low deposit rates, and friction-intensive processes, ushering in an era of transparency, inclusiveness, and constant revenue opportunities.
Banks mainly profit through lending, but this comes at a cost. Users often experience high interest rates, intrusive credit checks, and a plethora of unfair policies with inconsequential benefits. On the other hand, DeFi loans are collateralized via cryptocurrencies, and entail industry-low interest rates and no identity checks. This newly-found liquidity is commonly used to bank on emerging opportunities without selling one’s assets and missing out on potential yields driven by value growth.
Freeliquid is further tapping into DeFi’s total addressable lending market, by allowing the collateralization of liquidity pool tokens. Seeing huge success and demand, Freeliquid is now integrating with Curve Finance and expanding to the Binance Smart Chain.
Freeliquid Decentralized Lending Service Adds Support for Curve Liquidity Pool Collateral
DeFi users engage in liquidity providing on automated market makers (AMMs), which are lightning-quick decentralized exchanges. By providing trading pair liquidity, users hold a fractional share of the pool, and therefore earn proportional transaction fees. Users’ pool share is mirrored through the means of LP tokens. So far, Freeliquid only supported Uniswap, but effective immediately, Curve’s 3pool has been integrated as well.
Freeliquid’s value proposition thereby consists of collateralizing LP tokens to fund flexible and interest-free loans of up to 90% of the collateral’s size. In doing so, DeFi enthusiasts retain their LP income, while accessing extra liquidity that can be leveraged to attract additional revenue inflows. Freeliquid loans are given in $USDFL, a stablecoin soft-pegged to the USD. Once a loan is secured, one could easily use their $USDFL to provide additional liquidity, thus increasing their APY. Users can rinse and repeat the process many times over, leading to incredible APYs that no other DeFi protocol can hope to match. Of course, $USDFL can also be used to profit off token value growth or staking incentives.
The Freeliquid community has recently decided to add Curve Finance’s 3pool. Following the integration, $3CRV tokens can now be deposited as collateral on Freeliquid to obtain 110%-backed loans. The Curve expansion brings $800M more in potential liquidity stored in $DAI, $USDT, and $USDC. Holding the market record for the highest amount of stablecoin liquidity, Curve users will further boost their APY by borrowing $USDFL via Freeliquid.
Freeliquid Plans Expansion to Binance Smart Chain after Community Vote
Holders of Freeliquid’s $FL governance token are well-aware of Ethereum’s scalability issues and unsustainable transaction fees. DeFi is meant to be inclusive, yet charging $50 in gas fees for a transaction deters new users from ditching banks in favour of decentralized finance.
Freeliquid is based on the Ethereum network, but it is now adjusting its smart contracts to support the Binance Smart Chain (BSC). As a fork of Ethereum, BSC is similar in design, yet facilitates quicker transactions that incur a fraction of the standard costs.
The expansion is scheduled for Q2 2021, and will see the deployment of a separate set of smart contracts, allowing both infrastructures to coexist. Freeliquid is building a ETH-BSC bridge designed to allow cross-chain transactions in $FL and $USDFL.
BSC holds billions in liquidity from successful AMMs like PancakeSwap, which report a total-locked value as high as $4B. The supported BSC liquidity pairs are yet to be announced. As such, the move is expected to generate a large influx of DeFi enthusiasts looking to boost their APYs via Freeliquid’s LP-collateralized lending service.
Attaining Liquidity Freedom in DeFI
DeFi has never been short on exciting revenue streams, yet finite capital leads to opportunity costs. Freeliquid’s proposition of LP-collateralized loans breeds freedom to take advantage of any and all circumstances. With flexible terms, no interest concerns, community governance, and saving incentives, Freeliquid is the place to be for all DeFi liquidity providers, now on Curve and soon on BSC!
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Company Name: Freeliquid
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