The main advantage of Freeliquid is the support of Uniswap liquidity stablecoin pools as collaterals for borrowing. Users can lock their liquidity provider tokens through the smart contract of the Freeliquid Protocol and borrow up to 90% of the initial pool value. The USDFL are issued instantly and transferred to the user’s personal wallet. To return their liquidity tokens, users simply have to cover a part or the whole of the outstanding USDFL debt.
What are the advantages?
- Liquidity providers can keep their passive income from Uniswap fees and simultaneously receive funding in USD stablecoins for further use.
- There is no risk of liquidation, since the price of stablecoins remains almost the same.
- The Freeliquid governance token, FL, is distributed in a fair and uniform manner through several reward programs. The rewards are distributed among users that help the development of Freeliquid ecosystem, for example, by providing liquidity to FL and USDFL pairs.
- The project is constantly growing. More liquidity pairs and platforms (like, for example, Curve Finance or Mooniswap) can be added in the future.