George Town, Cayman Islands (Via ZEXPR) – Freeliquid, the DeFi lending protocol providing stablecoin loans collateralized by liquidity pool tokens, is now integrating Curve Finance’s 3pool LP tokens, thus expanding its total addressable market with $800M in additional liquidity.
The DeFi landscape is showcasing tremendous growth, with billions of dollars being locked in smart contracts by users looking to access emerging revenue opportunities. From providing liquidity to accessing crypto-collateralized loans, DeFi makes it easy for anyone to get involved with the financial market.
Improving DeFi Loans with Freeliquid
Cryptocurrency loans seldom serve the purpose of paying off ongoing real-life expenses. Instead, most crypto loans are taken in hopes of improving one’s yields by accessing emerging revenue opportunities. By collateralizing cryptocurrency, lenders can leverage their loans to purchase other coins, provide liquidity, or access staking initiatives without missing out on the potential gains realized by their collateralized funds.
Freeliquid supports liquidity provider token collateral, and gives out USDFL stablecoin loans amounting to 90% of the collateralized capital. In other words, liquidity providers on Uniswap and Curve finance retain their LP APYs, yet access loans that can be used to provide additional liquidity. This unlocks more LPs that can be used for further lending. The process can be repeated several times over, drastically improving one’s potential yields. Of course, the soft-pegged USDFL stablecoin can also be sold in exchange for growing cryptos or staked via the savings initiative.
Unlike other lending protocols, there’s no risk of liquidation on Freeliquid as it only collateralizes stablecoin LPs.
Announcing the Expansion to Curve Finance
Following a successful community governance vote, Freeliquid has added support for Curve’s 3pool (3CRV) LP tokens. 3pool is Curve’s largest stablecoin liquidity pool, often referred to as the highest-ranking on the DeFi market. Freeliquid will collateralize LP tokens for the Dai, USDT, and USDC, allowing Curve liquidity providers to boost their APYs which currently average between 16% and 40%.
CRV farming rewards will be obtained continuously, even whilst LP tokens are locked in the Freeliquid lending protocol. At this time, the loans entail no interest fee, and come along with flexible repayment times. Access to one’s collateralized LPs is regained as soon as the USDFL loan is repaid.
To learn more about the Curve 3pool LP integration on Freeliquid, read the Medium blog.
What’s Next for Freeliquid?
The Freeliquid team is actively working on further expanding the opportunities provided by its protocol. Yet another successful community vote has led to an upcoming expansion to the Binance Smart Chain. Due to Ethereum’s high gas fees, lending transactions can get quite expensive, creating unnecessary entry barriers for low-volume users. The BSC expansion, scheduled for Q2 2021, will lead to a drastic cutdown of associated costs, enabling stress-free lending by collateralizing LPs of popular AMMs like PancakeSwap.