What Is Freeliquid?

2021-03-18 06:00:00 · 88 views · 3 min read



Freeliquid is a decentralized lending platform, forked from MakerDAO, on which you can lock liquidity tokens (LP) and receive a loan up to 90% of the locked value in stablecoins



However, your locked LP continues to function, receiving the same income from liquidity fees. Freeliquid platform is currently being the only platform to offer such an opportunity.

Freeliquid has issued 2 tokens: USDFL and FL.



The USD Freeliquid (USDFL) is an ERC-20 stablecoin that is soft pegged to 1 US dollar and backed by user-provided collaterals. It is the main currency of the protocol and serves as a medium of exchange and an efficient store of value with a stable market price. It is easy to hold as well as transfer using cryptocurrency wallets. Like many other ERC-20 tokens, it is tradeable on decentralized exchanges as well.



Freeliquid Borrow allows users to lock their crypto assets in the form of liquidity pools as collateral to borrow USDFL stablecoins. It is done by setting up Freeliquid Vaults, which are smart contracts that generate USDFL after users lock their collaterals in Freeliquid Borrow and issue a loan. 

At the moment, Freeliquid Borrow supports Uniswap pools consisting of the following stablecoins: USDT, USDC, DAI, and USDN. You are able to borrow USDFL up to 90% of the collateralized asset value. The loans do not require a third-party approval and you are not bound by any date until which the repayment has to be made. Loans can be issued and covered instantly and at any time. The received funds in USDFL are in full control of users and can be traded freely. For example, this might include creating another pool on Uniswap, almost doubling the original passive income from liquidity fees.



Freeliquid Save is a savings program that earns interest for USDFL holders. Users can lock their USDFL in Freeliquid Save and receive constant payments, also in USDFL, accrued to their balance. The funding for Freeliquid Save comes from the interest charged for the loans in Freeliquid Borrow, so there is no inflation of USDFL involved. The user balance is updated constantly and can be claimed all at once for the whole past period. Similar to Freeliquid Borrow, the USDFL tokens can be locked and unlocked with no penalties. 



FL token is the governance token of Freeliquid in ERC20 standard. FL holders can participate in the governance of the project through voting. The token can be easily stored and transferred to any ERC-20 wallet. During the first three months of Freeliquid, you can get rewarded by providing liquidity pools for the USDFL-FL pair. There has been no ICO or private sale of FL, instead, the governance tokens will be distributed to users that support liquidity of the native Freeliquid tokens. 




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