Over the last few months, DeFi lending protocols have seen a huge influx of new users looking to collateralize their crypto assets in exchange for additional liquidity, a process that’s destined to yield additional revenue when used right. Since DeFi-based loans help users retain capital obtained through organic coin value growth, they can easily lead to much-improved revenue streams.
Funding Liquidity Providers via Freeliquid
The main drawback of traditional DeFi loans is their incompatibility with liquidity providers earning yields by depositing their stablecoins into automated market maker pools. Luckily, Freeliquid is the leading protocol for funding loans by collateralizing liquidity pool ownership tokens. The protocol seamlessly and instantaneously funds loans corresponding to 90% of users’ LP shares. Incurring no interest rates, stability fees, or strict repayment loans, Freeliquid does away with standard practices, providing the very best lending solutions to its customers.
How the Advanced Lending Protocol Works
With a sleek user interface, audited smart contracts, and a tight-knit community, Freeliquid is the simplest DeFi lending protocol there is. To take part, simply interact with the borrowing smart contracts and collateralize your LPs. All loans are funded in USDFL, an algorithmic stablecoin that’s soft-pegged to the value of the US Dollar. Once the loan is obtained, do with it as you please! Whether you exchange it to a growing token or use it to provide additional liquidity, yields are likely to improve.
Many users choose to use their USDFL to provide additional liquidity, minting more LPs, which are used to access additional loans. By repeating the process a few times, DeFi enthusiasts watch in awe as their annual percentage yields reach double-digit values.
From a technical standpoint, Freeliquid collateralizes stablecoin pools originating from Uniswap or Curve Finance. With support for USDT, USDC, and Dai, there are billions in potential liquidity waiting to be collateralized. The recent integration with Curve even retains $CRV rewards, further incentivising users to get involved.
As a community-governed protocol, Freeliquid also has its very own governance token, $FL. Initially distributed through a fair mechanism designed to incentivise LPs, $FL holds a core position within the protocol’s infrastructure. All developments are voted upon by $FL holders, with additional incentives being granted to those who provide liquidity in $FL-based pairs.
Freeliquid Launches Trading Pairs on Swop and Waves
Swop.Fi is an automated market maker that rewards contributors with $SWOP, the platform’s governance token. Swop.Fi has now launched a FL/USDN pool where LPs can obtain transaction fees incurred via swaps, as well as $SWOP distributions.
On the other hand, Waves is a centralized exchange that does away with the traditional model and operates more like an AMM, providing non-custodial coin management. Since it runs its own blockchain network, all transactions on Waves entail considerably lower costs as opposed to the Ethereum blockchain. The supported tokens are bridged, assuring inter-chain operability. Waves is now introducing a FL/USDFL trading pair, allowing swaps between Freeliquid’s two tokens.
Freeing Liquidity for the Many
With these aspects in mind, DeFi liquidity providers looking to boost their APYs for ‘free’ are encouraged to leverage Freeliquid’s services to fund USDFL loans. Either by collateralizing Curve’s or Uniswap’s LPs, or by using Swop.Fi or Waves, Freeliquid provides many ways to get involved. Soon to be launched on the Binance Smart Chain, Freeliquid’s ascension as the market’s best lending platform is a given.