What happens after v2? Breaking down our roadmap for the years to come.
Fringe is constantly evolving and improving. As we deploy Fringe’s v2, we already plan for what comes next.
In the second half of 2023, we’re gearing up to release several new features, integrations, and enhancements. All these improvements are designed to boost the platform in three dimensions; security, liquidity, and functionality, all focused on advancing our goal of #DeFi4Everyone. Every one of our new features is geared towards exploring opportunities for as many assets as possible rather than simply highlighting popular ones.
Let us give you a tour of our plans for Fringe Finance’s post-v2 era.
Margin & Amplify platforms
First up are our upcoming Margin and Amplify trading platforms.
Margin will provide users with the flexibility to choose their own pair of assets to trade against, rather than just trading against the US dollar. This will allow traders to select the base or “quote” asset of their choice, expanding the range of available trading options. Traders can take leveraged positions according to the direction they believe the market will take for a given pair, and select the amount of margin they want to add to the trade.
The user experience for the Margin Trading Platform differs slightly from the Amplify platform (see below), as users can select the assets they want to trade and adjust the parameters of the trade, including the degree of exposure they wish to gain. This is a crucial addition to the Fringe ecosystem, as it will attract traders looking to maximize their returns in the assets they’re most interested in without using centralized platforms, expanding Fringe’s user base.
The Amplify Platform, on the other hand, will allow users to magnify their exposure to a specific asset by taking a leveraged long position. This means that anyone can put down a deposit and receive amplified exposure to the asset they choose to trade, in this case, in relation to its US dollar value. With the use of loan-to-value ratios, traders can potentially multiply their exposure and amplify any gains resulting from the market moving in their favor. However, it’s important to note that traders should be aware of the added exposure if the market moves against their position and understand the risks associated with taking leveraged positions.
Both platforms will offer robust security measures to protect users’ assets and provide a seamless trading experience.
USB Stablecoin Platform
Another long-term goal for Fringe Finance is the USB Stablecoin Platform. This will introduce our stablecoin-backed lending platform.
The USB Stablecoin Platform allows borrowers to deposit their crypto collateral and mint a stablecoin called USB that is pegged to the US dollar. By doing so, borrowers can effectively leverage their crypto holdings as a line of credit. The platform’s economic mechanism is designed to maintain the stability of the USB stablecoin by requiring borrowers to pay a stability fee that acts as an interest rate. In turn, USB savers receive interest payments, which creates a dynamic interplay between the two parties. The platform also accepts a diverse range of whitelisted altcoins as collateral, which sets it apart from similar platforms.
While the initial V1 release will feature a reliable and secure platform, it relies heavily on $USDC as part of its pegged stability mechanism. However, with the IMF targeting stablecoins, we’re already planning ahead.
Subsequent USB releases will cover the platform’s censorship resistance, ensuring it remains a trustworthy and decentralized option. Alternative stablecoin mechanisms (such as those that are ‘stable’ but not pegged to a fiat currency) have languished until now because USDC-dependent stablecoins have worked fine. But that’s likely to change as the DeFi ecosystem moves away from pegged stablecoins and explores alternative stablecoin mechanisms. Specifically, mechanisms that offer stability without centralization or censorship risks. We’re excited by the possibility of eventually moving away from dollar-pegged stablecoins with USB’s v2. Future releases of the USB platform will focus on complete decentralization and enhancing its censorship resistance.
Furthermore, USB will also be further empowered by the Savings platform, where USB holders can lend out their tokens to earn yield.
New oracle price model
As we continue to build on the robust foundation of the Fringe platform, it is essential to emphasize the importance of not relying on a single oracle provider for any DeFi project. In decentralized finance, oracles play a critical role in providing accurate and up-to-date information on asset prices. However, relying on a single oracle provider can create a single point of failure, potentially exposing the platform to malicious attacks or price manipulation.
In light of these risks, Fringe is committed to developing a decentralized oracle solution that allows the platform to list as many assets as possible within our lending ecosystem. By diversifying our oracle sources and integrating multiple trusted providers, we aim to minimize the risk of manipulation and increase the overall security of our platform. This innovative approach ensures a more resilient price feed and fosters a healthier and more competitive lending ecosystem.
Furthermore, by developing our own oracle solution, we can create a flexible and scalable system that supports adding new assets and financial instruments as the DeFi market continues to grow and evolve. This adaptability is crucial for maintaining a thriving lending ecosystem, as it empowers Fringe to respond effectively to our users' changing needs and demands.
The new oracle price model is designed to work with Fringe’s partial liquidation model, offering a comprehensive and cohesive approach to risk management on our platform. By combining these two features, we can better protect our users from sudden price swings and mitigate the impact of potential price manipulation. This, in turn, builds trust in our platform and ensures a more secure environment for all participants.
In conclusion, developing a decentralized oracle solution that supports a diverse range of assets is paramount to the success and security of any DeFi project. By reducing reliance on a single oracle provider and implementing a dynamic, multi-faceted approach, Fringe aims to create a resilient and adaptable platform, ensuring the long-term growth and stability of our lending ecosystem.
The following integration on our docket is pooled collateral. As you know, we’re always looking for ways to make DeFi lending and borrowing more accessible. This addition will allow users to pool their various collateral deposits to take out loans against them as a whole.
Previous iterations of our lending design limited users to taking out loans against a single collateral asset. However, with the introduction of the pooled collateral enhancement, users will be able to borrow an asset like $USDC, $USB, or even $ETH (as more lending assets will be introduced with v2) along with a pool of multiple collateral assets. This flexibility and power of pooled collateral will enable users to leverage various assets, which can result in more diversified and robust lending portfolios. Users will no longer have to worry about the volatility of a single collateral asset impacting their entire position, as they can pool multiple assets and spread the risk.
To support pooled collateral, Fringe Finance is changing its liquidation mechanism. Previously, a borrower’s loan position had an explicit link to a particular collateral asset, and if that asset’s value dropped below a certain threshold, the position would be liquidated. However, with pooled collateral, a loan position will no longer be explicitly linked to any one collateral asset.
Instead, a borrower’s deposits will be pooled together, and a liquidator can select which collateral assets they wish to liquidate. This not only supports the flexibility of pooled collateral but also provides a more efficient and dynamic liquidation process that can quickly adapt to changes in the market.
By eliminating the traditional one-to-one link between collateral assets and loans, we aim to break down the barriers and make it possible for smaller investors to participate in DeFi lending and borrowing, regardless of their experience level or the size of their investments.
Multisig DAO wallets
Our next integration is multisig DAO wallets to provide a higher level of security and enable more efficient management of a DAO’s resources.
Multisig DAO wallets are a crucial step towards our vision of bringing DeFi to Everyone, and empowering DAOs with greater control and flexibility over their treasuries. With the built-in security of a multisig setup directly in the Fringe ecosystem, DAOs can optimize their resources and confidently navigate the complexities of a decentralized landscape, using the Fringe Finance ecosystem as they see fit.
Real yield and DAO governance
By staking their $FRIN tokens, users can earn real returns from the fees collected by the platform. They will also have a direct hand in moderating the use and distribution of network fees through the Fringe DAO. This unique opportunity provides an edge in today’s highly competitive crypto market, incentivizing users to participate in the platform’s maintenance actively, rewarding them for its success.
One of Fringe’s most expected features is, without a doubt, fee distributions. For this innovative mechanism to enter the picture, it’s critical that our platform begins collecting and earning fees from users, which can then opt into receiving their share. Every single addition to the platform, and every marketing decision made along the way, has the ultimate goal of bootstrapping this adoption.
In summary, it all starts with v2
These releases, integrations, and enhancements will build upon the foundation laid by Fringe’s v2, creating a more robust and secure platform. The team is also engineering various crypto-economic enhancements to improve the platform’s liquidity and overall functionality.
Fringe v2 introduces several cutting-edge features that make DeFi lending and borrowing more efficient, stable, and user-friendly than ever before.
With the introduction of partial liquidations, borrowers will be able to manage their loans more effectively, while multi-asset lender tokens and multi-chain support provide greater flexibility and access to a broader range of assets. Atomic loan repayments simplify the repayment process, making it more convenient for borrowers, and LP token support offers unprecedented flexibility and access to the untapped value of Liquidity Pool tokens. Additionally, an improved interest rate model maximizes the percentage of lender funds being loaned out, decreasing costs for borrowers and increasing revenue for lenders.
Fringe is committed to avoiding total reliance on centralized lending assets by increasing the available asset types while prioritizing decentralized assets. Simultaneously, we’re also taking significant steps toward trust minimization. We aim to implement an open-sourced frontend codebase, allowing greater transparency and collaboration within the community. This will ultimately pave the way for the Fringe DAO to take control of the platform. This move will further decentralize our lending ecosystem and create a more equitable and sustainable environment.
These innovations are underpinned by a decentralized back-end and integration with decentralized indexing services, which offer greater transparency and security for users.
Ensuring security is a fundamental aspect of Fringe’s mission to democratize access to DeFi for all. Unlike traditional finance, DeFi’s decentralized nature often lacks the same safeguards, making security a top priority.
Prioritizing user security and the security of funds is crucial for the long-term success and sustainability of any DeFi project. So far, Fringe has conducted rigorous audits and thoroughly tested each platform iteration. This process will continue so that we can better guarantee the project’s safety and prevent potential security breaches or exploits.
Our ultimate goal
Our ultimate goal is to enable a fully permissionless DeFi environment where retail users, DAOs, and whales can benefit from the most lucrative opportunities.
Current DeFi platforms have limited options for smaller altcoins, leaving them without access to the benefits of this emerging financial ecosystem. By expanding access to a broader range of both well-known coins and lesser-known assets, we are creating a more inclusive and equitable economic system that benefits everyone, regardless of their token holdings.
Fringe Finance is 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.