The Road to Sharing in Fringe’s Profits
Fringe has released Fringe V2, a platform that marks a notable stride in innovation by extending the frontier of lending and margin trading across multiple chains and by unlocking utility for an unprecedented large range of assets.
As we chart the course toward sharing in Fringe’s potential profits, a nuanced understanding of how FRIN holders stand to benefit becomes paramount.
Fringe V2, despite being in its nascent stages without significant platform fee accumulation, is designed to generate revenue through a portion of the interest paid by its borrowers and traders. This mechanism introduces a sustainable model for profit generation, where the success of the platform directly correlates with the potential returns to FRIN holders. Notably, the addition of traders via the Amplify and Margin Trade facilities opens up new revenue streams, amplifying the platform’s economic dynamics.
Revenue Model
The revenue model of Fringe is crafted to allocate a share of the platform’s earnings to those who stake their FRIN tokens, which will be enabled in the future. However, it’s essential to underscore that the distribution of revenue shares will commence once Fringe achieves product-market fit (PMF) — a state of reliable, sustainable, and meaningful usage.
The holy grail is achieving PMF so that sustained revenue share can then occur. The project intends to allocate resources judiciously to achieve that holy grail — for both the project’s success and for the long-term, sustained benefit of FRIN token holders. Distributing rewards before PMF is achieved compromises this goal.
The anticipation of future returns plays a pivotal role in shaping the FRIN token’s value. Investors and users gauge the platform’s potential by evaluating its unique value propositions (UVPs), marketing strategies, and partnerships. These assessments are instrumental in forecasting the likelihood of positive returns, thereby influencing the token’s market dynamics.
Platform features — Unique Value Propositions (UVPs)
Fringe’s commitment to supporting a wide array of assets, including both large-cap and long-tail assets, is a cornerstone of its UVP. This wide asset support not only caters to a broad spectrum of users but also represents appeal for DAOs in that it mitigates the downward price pressure by offering an alternative to selling governance tokens for funding. Moreover, the platform’s multi-chain support and advanced lending features underscore its broad utility, security, low cost and commitment to relevance to a wide user base.
Security measures, such as the novel Price Oracle model and the non-rehypothecation policy, ensure the integrity of transactions and the safety of user assets. The innovative interest rate model, support for LP tokens and ERC-4626 yield-bearing tokens and cost-saving mechanisms, like Fringe’s partial liquidation model, as well as convenience features such as repayment using collateral further delineate Fringe from its contemporaries by optimizing capital efficiency and minimizing user costs.
Yet, achieving PMF and unlocking the revenue-sharing potential hinges on effective marketing and strategic partnerships. Engaging with communities, integrating with other DeFi platforms and incentive programs and maintaining an active online presence are vital components of Fringe’s strategy to foster adoption and usage.
Conclusion
In essence, the journey to sharing in Fringe’s profits through FRIN tokens is one of strategic investment. The platform’s comprehensive suite of services, coupled with its forward-looking revenue model, presents a robust case for the token’s value. As Fringe navigates the path to PMF, the anticipation of shared profits serves as a beacon for investors, signalling the dawn of an era where participation in DeFi is not just about using the platform but being a part of its growth and success.
Fringe Finance — DeFi for everyone.
About Fringe Finance
Fringe Finance is a decentralized money market designed to unlock the capital spread in crypto assets regardless of their capitalization and supported network. With a next-generation DeFi lending & borrowing ecosystem, Fringe aims to unlock the dormant capital from traditional financial markets and all-tier cryptocurrencies.
For more information on Fringe Finance, visit our website.
