Fringe Finance has announced the upcoming launch of its V2 platform, scheduled for January 25, 2024, at 11:00 PM GMT.
This update represents an evolution in the company’s decentralized finance (DeFi) offerings, expanding its services across multiple blockchains.
Key Features of V2
The V2 update includes several new and enhanced features:
- Multi-Blockchain Support:
Building on its Ethereum base, V2 will now be available on Arbitrum, Optimism, ZkSync, and Polygon, widening user access across different blockchain networks. This integration allows users to access Fringe Finance’s services on their preferred blockchain network, enhancing accessibility and user choice. This multi-chain approach caters to a broader audience, potentially reducing transaction costs, and speeding up processing times, depending on the blockchain used.
- Increased Asset Range:
The platform will support a diverse range of assets, with a total of 118 on Ethereum, 36 on Arbitrum, 31 on Polygon, 18 on Optimism, and 5 on zkSync, increasing the total loan capacity to approximately $2.5 billion.
- New Trading and Lending Options:
Introducing Margin Trade and Amplify features that allow leveraged trading and enhanced exposure to various crypto assets. These new features enable users to engage in leveraged trading and amplify their exposure to different crypto assets. Margin Trade allows users to take leveraged positions on pairs of listed crypto assets, while Amplify lets users increase their exposure to specific assets.
- Updated Interest Rate Model:
A new interest rate model aims to dynamically balance rates to maintain optimal utilization and benefit both borrowers and lenders. The new model adjusts interest rates based on the current utilization rate, aiming to balance the demand for borrowing with the supply of lender capital. This approach maximises lender revenue and reduces borrowing costs, making the platform more attractive for lenders and borrowers.
- Enhanced Price Oracle Model:
This model is designed to provide more reliable and accurate pricing, reducing susceptibility to market manipulation. This feature is particularly important in the wake of significant losses in the DeFi space due to Oracle manipulation, enhancing the overall security and trustworthiness of the platform.
- Future LP Token Support:
A subsequent update will allow liquidity providers to access overcollateralized loans using their LP tokens as collateral, without liquidating their positions. This enables liquidity providers to leverage their positions, optimizing capital allocation and potentially increasing their returns.
Impact on the sector
The V2 launch of Fringe Finance marks a significant advancement in the DeFi sector, introducing a comprehensive set of enhancements to improve user experience, security, and functionality. With its expanded blockchain support, diverse asset range, innovative trading and lending options, and updated interest rate and price oracle models, Fringe Finance is set to offer a more robust and versatile DeFi platform.
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