Over the past two months, Freeliquid has made a name for itself as one of the best choices in the market for accessing liquidity pool token-backed loans. While the Ethereum blockchain is home to most of the DeFi ecosystem, a significant portion of projects, investors, and traders are turning to BInance Smart Chain (BSC). The main reasons include significantly improved scalability and efficiency, as users can transact at a fraction of the costs incurred on Ethereum.
Free liquid has now announced that it is working on expanding the Binance Smart Chain, thereby tapping into a larger addressable market. Once complete, the expansion will seamlessly fit into the existing Freeliquid ecosystem, with users free to operate on Ethereum or BSC.
To facilitate expansion, Freeliquid will branch off and adjust its smart contracts. The two technical infrastructures will operate side by side, without depending on each other. An inter-chain bridge will be created to ensure that the FL and USDFL tokens are interoperable and transferable between the two chains on demand.
The integration of BSC will be completed in the 2nd quarter of 2021.
Understanding Freeliquid’s loan product
The main function of Freeliquid is to provide liquidity providers with 90% loans on their LP collateral. This feature is of great benefit to investors all over the world as it allows for the creation of additional income streams while retaining all the profits obtained by providing liquidity. Loans are offered in USDFL, a stablecoin indexed to the value in USD. Depending on the size of their pool share, LPs can easily engage with the DeFi market in other ways, effectively doubling their profits with the same initial investment. Free cash loans does not result in unnecessary interest rates or urgent repayment obligations. LPs deposited on Freeliquid are due upon repayment of the USDFL loan.
Second, Freeliquid Save allows users to save on their USDFL by locking tokens in an automatic, non-custodial contract.
How BSC’s infrastructure complements Freeliquid
Binance Smart Chain houses unparalleled liquidity on its most popular swaps. For example, PanCakeSwap reports a total locked-in value of $ 4.24 billion, with billions more accessible on other BSC native automated market makers.
With sufficient in-store liquidity and very low transaction fees, it makes sense that Binance Smart Chain has attracted millions of users. As Freeliquid is rolled out on BSC, LPs will access another lucrative revenue stream that remains true to Freeliquid’s ethic of decentralization and anonymity, despite the more centralized nature of BSC.
The team will soon announce which stablecoin pools and pairs will be accessible on the Integration of Binance Smart Chain. Currently, Freeliquid provides a guarantee of LP DAI, USDT, USDC and USDN running on the Ethereum mainnet.
For more information, see The Freeliquid site, Telegram community, and Average page.
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