Fringe Finance, an all-new and inclusive DeFi lending platform, saw the integration of $FOX as a collateral type into its Primary Lending Platform (PLP). With Fringe’s PLP, borrowers can take out $USDC loans against their altcoins. Now $FOX holders will get access to stablecoin loans and will be able to unlock part of the value of their positions without selling their tokens.
Below, we’ve prepared a short tutorial on borrowing $USDC with FOX tokens.
How do $USDC Loans work?
Through Fringe Finance, you can take out instant $USDC overcollateralized loans against:
- $MATIC (Polygon)
- $FOX (Shapeshift FOX Token)
- $LINK (Chainlink)
- $TOMOE (ERC-20 $TOMO) (Tomochain)
- $REN (Ren Protocol)
- $IOTX (IoTeX)
- $BNT (Bancor)
- $OGN (Origin Protocol)
- $LDO (Lido Finance)
- $SHIB (Shiba Inu)
- $APE (Ape Coin)
Here’s how it works:
On the Primary Lending Platform, you can deposit altcoins into your personal collateral safes. Your wallet is the only key to moving the assets on your collateral safes. You, and only you, maintain full control of your assets throughout the duration of your loans. Fringe’s PLP has been doubly audited by HashEx and CyberUnit; thus, it has the highest standard of security in crypto. Still, we encourage users to always do their own research before dropping assets to a smart contract.
Once assets have been deposited into the platform, you may take out loans against your holdings. The amount a user can borrow depends on the total value deposited in the collateral safe, the asset’s maximum borrowing capacity, and the asset’s loan-to-value ratio (LVR). $FOX current LVR in Fringe’s PLP is 44% — depositing $1000 worth of $FOX allows a user to borrow up to 440 $USDC.
Outstanding loans accrue interest continually. This interest, however, does not increase proportionally as your $FOX increases in value. This means that any gains from your $FOX position are entirely yours. If your $FOX drastically depreciates, your position may become undercollateralized and subject to liquidation. In other words, the platform will be allowed to sell an equivalent amount of your deposited $FOX plus a liquidation fee to settle your loan.
What is FOX?
ShapeShift is a cryptocurrency exchange founded in 2014. After being pressured by regulations to add KYC requirements in 2018, ShapeShift decided to transition into a KYC-less self-custodial DEX with zero fees. Shapeshift works as a DEX aggregator, selecting the DEX route that costs the least to the user. Its platform also features an interface to access and control DeFi investments, and integration with fiat on-ramps such as JunoPay, Banxa, and GEM.
Shapeshift also runs CoinCap.io, a cryptocurrency market data platform, and KeepKey, a cryptocurrency hardware wallet. $FOX is ShapeShift’s governance token, controlling the ShapeShift DAO and offering liquidity farming opportunities.
How to borrow USDC with FOX on Fringe Finance
You can get an instant $USDC loan with $FOX in five easy steps.
- Go to Fringe Finance’s PLP and open the Borrow tab. Click the Deposit button on the right of the Fox token and press Enable. Metamask will prompt you to confirm a transaction enabling the deposit of $FOX into Fringe’s PLP.
- First, enter the amount of FOX tokens you would like to deposit. Click Deposit and confirm the operation via your MetaMask wallet.
- Click FOX’s “ ⋮ ” button to open the drop-down menu, and then click
- Enter the amount of $USDC you want to borrow, taking care to keep the Health Factor as far from 1 as reasonable to avoid being liquidated. Click Borrow and confirm the operation via your MetaMask wallet.
- That’s it! Your borrowed $USDC will be available in your wallet automatically.
How to repay your loan
You can repay your $USDC loan in three easy steps.
- On the Borrow tab of the Fringe Finance’s PLP click Repay.
- Enter the amount of $USDC you want to repay. Click Repay and confirm the operation via your MetaMask wallet.
- After the successful confirmation of the transaction, your loan will be repaid. Hence, you will be able to withdraw your deposited $FOX by clicking Withdraw.
Learn more about Crypto Borrowing and Lending
FOX is one of the top altcoins that can be used as collateral to get an instant loan on Fringe Finance. You can check other accepted altcoins on our Primary Lending Platform, alongside the $USDC lending functionality that allows you to effortlessly earn interest on your $USDC.