Freeliquid Welcomes Curve Liquidity Providers Looking to Access LP-Collateralized Stablecoin Loans
Unlike the traditional lending market, the cryptocurrency lending ecosystem does not believe in friction-intensive processes like credit checks, identity checks, high interest rates, or strict repayment times. Rather, it fosters freedom of choice, decentralization, and security by providing crypto-collateralized loans.
Crypto loans show great promise in increasing users’ liquidity in hopes of profiting off emerging opportunities. Rather than selling coins to access much-needed liquidity, DeFi allows seamless collateralization that helps traders retain all profits they’d otherwise make through organic value growth.
Despite DeFi’s innovative solutions, users whose funds are locked in automated market maker (AMM) liquidity pools often have nothing left to collateralize, missing out on extra yields. While depositing fresh capital is possible, it’s understandable that many DeFi enthusiasts refrain from reducing their fiat reserves too much.
What if there was a way to collateralize your liquidity pool assets, receive stablecoin loans, and capitalize the extra liquidity by investing in other DeFi opportunities? As a matter of fact, there is! Freeliquid provides USDFL stablecoin loans amounting to 90% of users’ LP shares. The protocol stays true to the DeFi ethos of flexibility and inclusiveness, with flexible terms, no interest fee, no liquidation, no credit checks, no KYC, and unparalleled collateral security through efficient smart contract deployment.
Freeliquid Announces Expansion to Curve Finance Liquidity Pool
Until now, Freeliquid has solely operated on Uniswap, attracting thousands of users looking to collateralize their LPs. The team believed that an expansion to Curve’s 3pool would attract even more users while further establishing Freeliquid as the market’s best DeFi lending protocol. Its community was in full agreement as observed in the recent governance vote passed by FL token holders.
The expansion to Curve’s 3pool is already complete, with support added for Dai, USDT, and USDC. Curve LPs can now collateralize their ownership tokens to access 90% loans on their pool share. As was the case on Uniswap, Curve users will receive loans in USDFL, a stablecoin that’s soft-pegged to the USD.
A fun trick is that the loan can be used to provide additional liquidity, yielding even more LPs. These LPs can be further collateralized to obtain even higher yields. By repeating the process several times over, users can at least double their initial APY. Of course, customers can do with USDFL as they please, sith no strings attached. Noticed an interesting staking initiative? No problem! Want to exchange USDFL to capitalize on a growing coin? Easy! In fact, debtors can even choose to keep their USDFL idle and still earn a profit. By locking USDFL in the non-custodial Freeliquid Save, variable yields on deposited USDFL are secured.
LPs are unlocked as soon as the USDFL loan is repaid, with users keeping their farm rewards and standard APYs.
What’s Next for Freeliquid?
Yet another community vote has successfully passed the proposal to expand to the Binance Smart Chain. Scheduled for Q2 2021, the expansion will bring along thousands of BSC enthusiasts with billions in stablecoin liquidity.
Over the last few months, the Binance Smart Chain has grown into Ethereum’s main competitor due to its much lower transaction fees and better scalability performance. While Ethereum may scale eventually, competition is always fruitful.
Freeliquid will soon integrate the Waves Protocol, introduce stability fees, and launch a USDFL stabilisation mechanism, as seen on the official roadmap.
To learn more, check out Freeliquid’s website, Medium, Twitter, and Telegram communities.