By this moment, it has become clear that banks must buckle up, because a paradigm shift to lending is imminent. The DeFi market is rapidly taking the credit market by storm, effectively creating friction-less means of collateralizing cryptocurrencies in exchange for fiat, stablecoin, and crypto-based loans. Coupled with much lower interest fees and no bureaucratic processes, millions upon millions of dollar’s worth in crypto-secured loans are processed on a monthly basis.
Freeliquid is further opening the DeFi lending market by providing users with loans backed by liquidity pool collateral. The service mainly appeals to liquidity providers on Uniswap and Curve Finance, who are currently earning APYs through stablecoin pair liquidity.
Freeliquid Partners Up with Swop.Fi and Waves Exchange
After seeing significant success on its path to becoming the DeFi market’s best LP-based lending product, Freeliquid is further expanding its value proposition by partnering up with leading exchanges like Swop.Fi and Waves Exchange.
As part of the Swop.Fi integration, Freeliquid enthusiasts can now add FL/USDN liquidity and carry out exchanges via the low-fee automated market maker. $FL is the protocol’s governance token, allowing users to vote on platform updates and expansions. Since $FL was launched using a fair distribution model that rewarded LPs, these incentives must go on. On Swop.Fi, FL/USDN LPs will earn rewards in $SWOP, currently estimated at 160% APY.
Freeliquid has also listed its FL/USDFL trading pair on Waves – albeit being a centralised exchange, Waves provides non-custodial access to capital, as well as industry-low fees. For those who’re still out of the loop, $USDFL is Freeliquid’s lending stablecoin, soft-pegged to the USD.
How Freeliquid Works – An Overview
Freeliquid collateralizes liquidity pool share tokens for DAI, USDT, USDC, and USDN pairs originating from Curve’s 3pool and Uniswap. With billions available in collateralizable liquidity, the platform’s unique market offering will certainly position the platform as the best DeFi lending protocol out there.
Securing a loan is simple – users must interact with the borrow function on FL’s website, by collateralizing their LPs. Once the process is complete, $USDFL is minted from the treasury. The loan can then be converted to any digital asset or can be further pooled in liquidity pairs, minting additional LPs. A new loan can then be taken, assuring even higher APYs. Access to the collateralized LPs and the afferent transaction fee rewards is instantly gained as soon as the corresponding $USDFL loan is repaid.
At press time, Freeliquid does not charge interest rates or stability fees, with flexible loan terms being provided. Following community votes, such fees may be implemented in the near future, further empowering $FL token holders.
Freeliquid to Expand to Binance Smart Chain
Ethereum’s gas fees are no longer sustainable for low-volume users, whereas the Binance Smart Chain (BSC) processes transactions at a fraction of ETH’s costs. In response to changing market dynamics, Freeliquid will soon collateralize BSC-based liquidity pool tokens, opening up to billions more in addressable liquidity.
Last but not least, the lending protocol’s management team has hinted at FL-ETH pair farming, as well as other exciting developments for the current year.