Fringe Finance is thrilled to announce that our highly anticipated V2 will be launched on the 25th of January 2024 at 11:00 PM GMT. The latest iteration of our lending platform will be supplemented by margin trading and amplification facilities. Even more excitingly, starting today, we’re soft-launching the platform for early adopters. More details can be found in the “Soft Launch” section of this article.
Prepare all your questions, as we’ll host an AMA session on Twitter (AKA X) Space before the official launch to answer them all.
Our community members are already familiar with the numerous updates we’re bringing to the table with the V2 launch, but let’s briefly review for any newcomers.
What’s New in V2?
We had a hard time choosing which of the implemented updates to include because there are so many of them, making an announcement too long to read. Just take a look at the candidates that were included in the release but didn’t make it to this article:
- Pooled collateral
- Decentralized back-end
- Atomic repayments
- Proportional liquidator rewards
- Non-rehypothecating model
All of them deserve a special article, and some of them already have or will have one. Now, let’s take a closer look at the ones we will scrutinize more thoroughly.
Available assets & chains
Since V1, our crucial competitive advantage has been the number of available markets on the platform. With the V2 launch, we’re doubling down on that with an order-of-magnitude increase. The platform is expanding the list of available chains from Ethereum-only to include Arbitrum, Optimism, ZkSync, and Polygon.
Our new lending model design makes virtually all whitelisted assets available on the lending side, marking a drastic change from the previous USDC-only model.
With the new available price oracle model, we’re ready to finally onboard an unbelievable number of markets:
- 118 assets on the Ethereum Mainnet
- 36 assets on Arbitrum
- 31 assets on Polygon
- 18 assets on Optimism
- 5 assets on zkSync
Total loans that could be taken on the platform, considering the combined deposit limits and LVR of all the assets, are estimated at $2.5 billion.
The whole world will be tokenized. I knew it the second I started viewing tokens as a new form of equity. That’s why I knew the world would need a venue to borrow, hedge, and leverage those assets in a permissionless, trustless manner. V2 is our declaration to be that venue: 150+ assets, 5 chains, 4 products, 1 destination. Fringe’s motto is DeFi4everyone because that means there’s no one left for the banks. We’re coming for it all.
Paul Mak, CEO of Fringe Finance
Margin Trade and Amplify
Yes, we are no longer just a lending platform with the launch of two new leveraged trading facilities. The innovative Fringe Amplify facility lets users strategically amplify exposure to any of our supported crypto assets, accelerating potential returns.
With the introduction of the Fringe Margin Trade facility, we are empowering users to engage in leveraged margin trades on pairs of any of our listed crypto assets, enhancing the potential for accelerated returns as they strategically go long on one asset and short on another, with the user specifying the desired exposure and margin amount for the position.
Improved Interest Rate Model
The new revamped Interest Rate Model, a departure from simplistic interest rate models used by most other lending platforms, dynamically adjusts interest rates to target a specific utilization rate. It continually incentivizes borrowing by reducing rates when below the target and encourages capital deposits by increasing rates when surpassing the target.
The purpose of Fringe’s new interest rate model is to maximize the percentage of lender funds that are loaned out at any point in time, to increase lender revenue, and to decrease costs for borrowers.
New price oracle model
Fringe Finance’s innovative price oracle model is designed to provide substantial advantages for users, including lenders, borrowers, and traders. It focuses on enhanced resilience against market price manipulation attacks, ensuring dependable and precise prices for user interactions. This model employs meticulous rules for price procurement, considering factors such as user interactions and price-updating bots, while also maintaining efficient processing through the logging of prices. Furthermore, price processing involves the integration of additional sources and a series of operations on reported prices to reinforce system protection.
DeFi lost an estimated $400M+ from oracle manipulation attacks in 2022. Fringe Finance’s new V2 platform is resistant to oracle manipulation attacks with our New Price Oracle Model. Come for the 150+ supported assets, five chains, and feature-rich DeFi lending & margin trading, and stay for the security.
Brian Pasfield, CTO of Fringe Finance
LP Token Support
At the subsequent release following the V2 launch, we’re introducing Fringe Finance’s groundbreaking approach to unlocking traditionally inaccessible LP capital by offering overcollateralized loans.
Liquidity providers will be able to tap into stablecoin (or any available coin) funds without closing their LP positions, leveraging yields, optimizing capital allocation, and at the same time maintaining income from liquidity provision fees.
The value of a token will be calculated proportionally to the value of the assets it can be redeemed for.
For those of you who cannot wait until the official launch date, we’ve prepared the soft launch of V2 at appv2.fringe.fi.
While the contracts are deployed and operational, the team is actively refining the user interface before the official launch. The underlying contracts remain stable, ensuring a secure foundation. Users are invited to explore the soft launch, providing valuable feedback for further improvements.
“Build a good product, and customers will come,” one wise man said. So true, but anyway, you need people to know about the product’s existence first.
Social Media Activities
The first event in the series will be a Twitter Space, where the team will gather to discuss their corresponding parts of the ecosystem and answer any questions from our beloved community members.
Following that, we’ll start a series of tweets that disclose the assets already listed on the platform and the ones that will be listed with the official launch. We’ll invite some projects whose assets are listed on the platform to join us for the Twitter Space and other promotional activities.
On Debank, the rising star among decentralized social networks, a special promotion is planned as well that will help boost the platform’s visibility among Web3 users.
OP Red Wars
A list of chain-specific activities will start with Optimism Red Wars, a series of events that incentivize the protocol’s usage on that L2 chain.
The program will take into consideration the following activity parameters on the platform:
- Amount of funds borrowed per day
- Amount of funds lent per day
- Amount of funds lent from borrowed assets per day
- Number of assets in the portfolio
- Amount of historically borrowed assets per day
Fringe Finance will participate in the 3rd round of the program along with other lending protocols in the space. The overall rewards will include the distribution of 20K OP, and we’re adding our own pool with $ 2K worth of FRIN tokens.
You can read more about OP Red Wars here.
In conclusion, Fringe Finance’s highly anticipated V2 launch on January 25, 2024, introduces a myriad of enhancements, including expanded asset availability across five chains, and innovative facilities like Margin Trade and Amplify.
The V2 launch is a significant step for the entire DeFi ecosystem, and we expect that the narratives set by our release will become the golden standard for the industry. With a soft launch already available at appv2.fringe.fi, users are invited to explore and provide feedback for final refinements before the official launch.
Fringe Finance — DeFi for Everyone