Fringe Finance

Fringe Finance, an all-new and inclusive DeFi lending platform, saw the integration of $UNI as a collateral type into its Primary Lending Platform (PLP). With Fringe’s PLP, borrowers can take out $USDC loans against their altcoins. Now $UNI 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 Uniswap tokens.
<h2 id="header-0">How do $UNI Loans work?</h2>
Through Fringe Finance, you can take out instant $USDC overcollateralized loans against:
<ul>
 <li>$MATIC (Polygon)</li>
 <li>$UNI (Uniswap Token)</li>
 <li>$DODO (DODO)</li>
 <li>$SAND (The Sandbox Token)</li>
 <li>$MANA (Decentraland)</li>
 <li>$FOX (Shapeshift FOX Token)</li>
 <li>$LINK (Chainlink)</li>
 <li>$TOMOE (ERC-20 $TOMO) (Tomochain)</li>
 <li>$REN (Ren Protocol)</li>
 <li>$IOTX (IoTeX)</li>
 <li>$BNT (Bancor)</li>
 <li>$OGN (Origin Protocol)</li>
 <li>$LDO (Lido Finance)</li>
 <li>$SHIB (Shiba Inu)</li>
 <li>$APE (Ape Coin)</li>
</ul>
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 <a href="https://github.com/HashEx/public_audits/blob/master/Fringe%20Finance/Fringe%20Finance.pdf" rel="noopener noreferrer nofollow">HashEx</a> and <a href="https://drive.google.com/file/d/1LS7Xmxpgs2ontY0RSvpsLwyRZ20ypK26/view" rel="noopener noreferrer nofollow">CyberUnit</a>; 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). $UNI current LVR in Fringe’s PLP is 49% — depositing $1000 worth of $UNI allows a user to borrow up to 490 $USDC.
Outstanding loans accrue interest continually. This interest, however, does not increase proportionally as your $UNI increases in value. This means that any gains from your $UNI position are entirely yours. If your $UNI 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 $UNI plus a liquidation fee to settle your loan.
<h2 id="header-1">What is UNI?</h2>
The <a href="https://uniswap.org/" rel="noopener noreferrer nofollow">Uniswap</a> Protocol is an open-source protocol for providing liquidity and trading ERC20 tokens on Ethereum. It eliminates trusted intermediaries and unnecessary forms of rent extraction, allowing for safe, accessible, and efficient exchange activity. The protocol is non-upgradable and designed to be censorship resistant.
<h2 id="header-2">How to borrow USDC with UNI on Fringe Finance</h2>
You can get an instant $USDC loan with $UNI in five easy steps.
<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/7bb1bd1c285e42628630886ed9abdb42.png">

1. Go to <a href="https://app.fringe.fi/" rel="noopener noreferrer nofollow">Fringe Finance’s PLP</a> and open the Borrow tab. Click the Deposit button on the right of the UNI and press Enable. Metamask will prompt you to confirm a transaction enabling the deposit of Uniswap tokens into Fringe’s PLP.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/c8b219ad615d4fd598b4b2782fb7df6f.png">

2. First, enter the amount of $UNI tokens you would like to deposit. Click Deposit and confirm the operation via your MetaMask wallet.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/945cb41791494433a70f7d3d061c1d16.png">

3. Click Uniswap’s “ ⋮ ” button to open the drop-down menu, and then click Borrow.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/42a4201d42b0496cbe9a6d77e3f3e5df.png">

4. 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.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/177b5e5e77904d1cb0f0fed9216235f3.png">

5. That’s it! Your borrowed $USDC will be available in your wallet automatically.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/c0c2303055904c1c8835905514938781.png">

<h2 id="header-3">How to repay your loan</h2>
You can repay your $USDC loan in three easy steps.
<ol>
 <li>On the Borrow tab of the <a href="https://app.fringe.fi/" rel="noopener noreferrer nofollow">Fringe Finance’s PLP</a> click Repay.</li>
</ol><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/ecc3c7c4254a42aeb071aa2c2b903995.png">

2. Enter the amount of $USDC you want to repay. Click Repay and confirm the operation via your MetaMask wallet.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/9279fa53af08484587349b1a7210f406.png">

3. After the successful confirmation of the transaction, your loan will be repaid. Hence, you will be able to withdraw your deposited $UNI by clicking Withdraw.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/c856c3cd01dc45d5be58e329fad05592.png">
<h2 id="header-4"></h2>
<h2 id="header-5">Learn more about Crypto Borrowing and Lending</h2>
UNI 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 <a href="https://app.fringe.fi/" rel="noopener noreferrer nofollow">Primary Lending Platform</a>, alongside the $USDC lending functionality that allows you to effortlessly earn interest on your $USDC.

Borrowing USDC with UNI: A Guide

Table of Contents

Fringe Finance

Other articles published on Sep 5, 2022

Fruit Fighter — KomNPlay War Mode Events

The Importance of Being a Cross-Chain Protocol

Position Exchange: August Wrap-up and September Strategy

Cryptocurrency price update: ETHEREUM PRICE ANALYSIS : ETH fails to cross the bearish channel lin...

Bitcoin Loses Momentum as 5000 BTC Transfers to Kraken Exchange

BUIDL-Weekly: 22AUG22 - 28AUG22

Join our free newsletter for daily crypto updates!