Fringe Finance

Fringe Finance, an all-new and inclusive DeFi lending platform, saw the integration of $wETH as a collateral type into its Primary Lending Platform (PLP). With Fringe’s PLP, borrowers can take out $USDC loans against their altcoins. Now $wETH 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 wrapped ETH tokens.<h2 id="header-0">How do $USDC Loans work?</h2>Through Fringe Finance, you can take out instant $USDC overcollateralized loans against:<ul><li>$REN (Ren Protocol)</li><li>$IOTX (IoTeX)</li><li>$PAXG (Pax Gold)</li><li>$LINK (Chainlink)</li><li>$ZRX (0x Token)</li><li>$OCEAN (Ocean Protocol)</li><li>$SNX (Synthetix)</li><li>$wETH (Wrapped ETH)</li><li>$BNT (Bancor)</li><li>$MANA (Decentraland)</li><li>$MATIC (Polygon)</li><li>$LON (Tokenlon Network Tokens)</li><li>$DODO (DODO)</li><li>$FXS (Frax Share)</li><li>$FOX (Shapeshift FOX Token)</li><li>$LDO (Lido Finance)</li><li>$SAND (The Sandbox Token)</li><li>$SHIB (Shiba Inu)</li><li>$UNI (Uniswap)</li><li>$OGN (Origin Protocol)</li><li>$GTC (Gitcoin)</li><li>$KNC (Kyber Network)</li><li>$APE (Ape Coin)</li><li>$TOMOE (ERC-20 $TOMO) (Tomochain)</li><li>$FTX (FTX Token)</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). $wETH current LVR in Fringe’s PLP is 70% — depositing $1000 worth of $wETH allows a user to borrow up to 700 $USDC.Outstanding loans accrue interest continually. This interest, however, does not increase proportionally as your $wETH increases in value. This means that any gains from your $wETH position are entirely yours. If your $wETH 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 $wETH plus a liquidation fee to settle your loan.<h2 id="header-1">What is Wrapped Ethereum?</h2>$wETH is an ERC-20 token pegged to the price of Ether ($ETH). $wETH has a wider range of use cases than $ETH and is incredibly popular in the DeFi ecosystem. It’s also issued by a decentralized smart contract, so it does not have a centralized issuer like other wrapped tokens.Ethereum is a technology for building apps and organizations, holding assets, transacting and communicating without being controlled by a central authority. There is no need to hand over all your personal details to use Ethereum — you keep control of your own data and what is being shared. Ethereum has its own cryptocurrency, Ether, which is used to pay for certain activities on the Ethereum network.<h2 id="header-2">How to borrow USDC with $wETH on Fringe Finance</h2>You can get an instant $USDC loan with $wETH in five easy steps.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/8b6953ef29f140b391f9b457796834ce.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 Wrapped ETH token and press Enable. Metamask will prompt you to confirm a transaction enabling the deposit of $wETH into Fringe’s PLP.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/663ffebcdeb34facb2d46fe596ef9cb1.png" />2. First, enter the amount of $wETH tokens you would like to deposit. Click Deposit and confirm the operation via your MetaMask wallet.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/4d20ac3fb1724d63aa05006f212e5dc2.png" />3. Click $wETH’s “ ⋮ ” button to open the drop-down menu, and then click Borrow.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/c25e550db68a43e19bd12bb74ac7ef69.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/optimized-uploads/b519b46df44b4d848f5e9ccfa7a2bc1d.png" />5. That’s it! Your borrowed $USDC will be available in your wallet automatically.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/3c4a6028848f4dec881c8936e1828d85.png" /><h2 id="header-3">How to repay your loan</h2>You can repay your $USDC loan in three easy steps.1. On the Borrow tab of the <a href="https://app.fringe.fi/" rel="noopener noreferrer nofollow">Fringe Finance’s PLP</a> click Repay.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/2effa45ff4c54f4e85248400643b3224.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/optimized-uploads/7aa9b86a115b4d2a9934ea3c8e19c074.png" />3. After the successful confirmation of the transaction, your loan will be repaid. Hence, you will be able to withdraw your deposited $wETH by clicking Withdraw.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/c6f9e2fd74084f75b9ae1fd60fa64c5a.png" /><h2 id="header-4">Learn more about Crypto Borrowing and Lending</h2>wETH 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 wETH: A Guide

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Fringe Finance

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