Friday, December 8, 2023

Enhancing the Utility of Low Cap Altcoins Through Multifunctional Lending Platforms

In the past 13 years, since the world has borne witness to the unique potential of blockchain technology, a lot of innovations have been introduced. 

Amongst these is Decentralized Finance (DeFi), a finance model that sought to give better financial products and services compared to what mainstream banks offer. Thanks to the proliferation of various smart contracts and digital tokens, many tailored services have now emerged that make it possible for users to borrow coins in an easy and decentralized manner — with a provision to incentivize the group of investors who provide the liquidity.

Just as the law of natural selection makes it possible, these protocols are often focusing on the most popular or established coins. This streamlined embrace poses a great deal of strain to the mainstream adoption of decentralized finance. As such, it lies on innovators to debut a model that will recognize the sidelined altcoins and broaden the options available to investors.

Stepping up to the Challenge: Radar on Fringe Finance

The blockchain world is very competitive. With the massive competition, innovators are often cautious when choosing what to invest their ingenuity and resources into. While a lot of innovators generally shy away from unfamiliar products and services, a whole lot of others reconstruct what has been in existence to have a fair chance of gaining a market advantage.

Fringe Finance is one of the few names that is stepping up to resolve the few unanswered challenges in the space. As a predominantly decentralized finance protocol, Fringe accepts a diverse set of smaller altcoins and allows them as collateral for stablecoin loans. 

Its allowance for smaller altcoins did not impact its ease of onboarding of any altcoins as these tokens can easily apply for inclusion on the Fringe Finance platform. Once the Fringe admin receives this application, the token is subjected to a comprehensive and rigorous vetting process. It gets assigned a Tier based on a set of predefined qualities: the token’s inherent liquidity, susceptibility to extreme volatility, and non-circulating supply amongst others.

As mentioned earlier, Fringe Finance is a DeFi platform through which users can borrow whitelisted stablecoins, and collateralize them through the hoard of stablecoins profiled on the platform. This provision offers massive flexibility to altcoin owners, most of which have in time past been pushed to liquidate their holdings, sometimes at a loss when the need arises since there is a scarcity of protocols that would let them lend and deposit these tokens as collateral.

Fringe Finance also helps lower the barriers to entry for interested borrowers, while offering everyone in its ecosystem a host of other tailored products and capabilities across the board that gives additional value to their holdings.

Reinventing the Reaches of Decentralized Finance

It is not uncommon to find a massive influx of users into the DeFi world daily. This trend is fueled by the ecosystem offering some unique interest rates that are relatively better than what the mainstream market is offering. 

While protocols are emerging in the DeFi world today, the onus lies on the pioneers to reinvent the products and services so that users can be exposed to the diversity that would characterize the inherent capabilities of the underlying blockchain technology. DeFi has a functional evolutionary tendency, and the only way to connect to the depth of innovative offerings is when creators think beyond the horizon. 

While the sector may still be in its infancy, a number of platforms are fit to be tagged as helping to bootstrap its growth. In the next few years, the dividends of this pioneering work are billed to yield its fruits across the board.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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