List SUSHI and xSUSHI as collateral assets on Fringe Finance

Details of the offer

Request:

Pros for SUSHI and xSUSHI:

  • Extra token utility
  • Reduced selling pressure on the market
  • $SUSHI holders will be able to access stablecoin loans

What does Fringe Finance offer SUSHI and xSUSHI holders?

By listing Sushi and xSushi as collateral assets on Fringe, Sushi users who own these assets will be able to access USD-denominated lines of credit while benefiting from the below described features of the Fringe Finance platform.

On Fringe, borrowers deposit collateral against which they may take out loans in a select set of the most liquid and reliable USD stablecoins. The resultant benefit for borrowers on Fringe Finance is that they have access to deep, unfragmented capital pools from which to borrow. This significantly reduces both the interest rate slippage they can expect when taking out a loan, in addition to reducing interest rate volatility over the course of their loan.

Fringe’s depth and concentration of lending capital liquidity also benefits lenders, as it similarly reduces the interest rate slippage they can expect to experience when depositing capital as well as reducing fluctuations in the interest paid on their capital. This indirectly benefits borrowers, as lending on Fringe becomes more attractive, resulting in more capital being available at lower interest rates.

An additional indirect benefit for borrowers is that Fringe’s platform employs empirically sound custom algorithms to determine lending parameters so as to maximize platform stability. This attracts lenders to the platform and therefore results in greater capital available for borrowers.

Finally, Fringe Finance will very soon implement yield incentives for lenders which will allow Sushi and xSushi holders to borrow stablecoins against their capital at attractive below-market interest rates.
Fringe Finance has twice been audited by respected firms. Listing SUSHI and xSUSHI on Fringe’s Primary Lending Platform also qualifies the asset to be added as a collateral asset on Fringe’s soon-to-be-released USB Stablecoin Platform. On this platform, the Sushi community will be able to mint USB stablecoins against their assets in a way that resembles Maker.

Steps/execution

  1. Approval by the SushiDAO.
  2. Submission of a listing application in Fringe’s Platform.
  3. Feedback session and discussion group upon need.
  4. Fringe Finance to configure Sushi and xSushi as new collateral assets.
  5. Mutual announcement of integration.

Conclusion

  • Allowing Sushi and xSushi holders to take out stablecoin loans on Fringe Finance’s Primary Lending Platform represents a significant added utility.
  • No additional liquidity from the Sushi Treasury is required.
  • No technical implementation by Sushi is required.

Platform description

Fringe Finance is a decentralized money market designed to unlock the capital spread in crypto assets regardless of their capitalization and supported network. With a next-generation DeFi lending & borrowing ecosystem, Fringe aims to unlock the dormant capital from traditional financial markets and all-tier cryptocurrencies.

Vote

  • Support Sushi and xSushi lending markets on FRINGE FINANCE
  • DO NOT support

0 voters

2 Likes

This is a win-win proposal.
The proposal also creates additional value for xSUSHI holders, who can use the token in a borrow/lending platform and further earn from holding.
Nice!

1 Like

This is a great opportunity for both platforms to collaborate. Fringe is a “start up” defi borrowing/lending platform, that has a real chance of being a small player in the Defi space in the near term. The team delivered on their promises, and code is double audited.

1 Like

Non-custodial Primary Lending Platform (PLP)
A safe place for you to invest and borrow against your holdings. Fast, easily and on your own terms.

I don’t see how this could be bad, it seems like there are only benefits

If this was discussed at the last Sushi forum, I have not yet listened to the replay and am unfamiliar with what was discussed. I need to get a better idea of risks and rewards involved for Sushi.

Hey Nick!

We have not yet jumped on the Sushi Forum calls, but are planning to do so.

The main benefit for Sushi holders is additional utility and the removal of the selling pressure and downside volatility.

The risks are basically the same as with other DeFi lending protocols: hacks & bugs. Which we try to mitigate by Audits (the link is in the main post), advanced mechanics, and a bug bounty program.

You can hear the breakdown of the proposal by Carlos from Fringe Finance at the Sushi Forum 89
h t t ps://youtu.be/qKbysNYBgV0?t=6861