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Fringe Finance, an all-new and inclusive DeFi lending platform, saw the integration of $SHIB as a collateral type into its Primary Lending Platform (PLP). With Fringe’s PLP, borrowers can take out $USDC loans against their altcoins. Now $SHIB 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 SHIB tokens.
How do $USDC Loans work?
Through Fringe Finance, you can take out instant $USDC overcollateralized loans against IoTeX, Matic (Polygon), BNT (Bancor), Ren, Link (Chainlink), SHIB (Shiba Inu), APE (ApeCoin), LDO (Lido DAO), OGN (Origin Protocol), ApeCoin (APE) and TOMOE (TomoChain) tokens.
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 HashEx and CyberUnit, thus, it 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). $SHIB current LVR in Fringe’s PLP is 60% — depositing $1000 worth of $SHIB allows a user to borrow up to 600 $USDC.
Outstanding loans accrue interest continually. This interest, however, does not increase proportionally as your $SHIB increases in value. This means that any gains from your $SHIB position are entirely yours. If your $SHIB 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 $SHIB plus a liquidation fee to settle your loan.
What is SHIB?
Shiba Inu is the first and most successful dogecoin-inspired memecoin. It was created in August 2020 by the pseudonymous “Ryoshi.” Shiba Inu’s community, which includes over 585k members, is known as the SHIBArmy. It has launched a number of associated projects, such as the ShibaSwap DEX, the LEASH and BONE tokens, and the Shiba Incubator.
How to borrow USDC with SHIB on Fringe Finance
You can get an instant $USDC loan with $SHIB in five easy steps.
- Go to Fringe Finance’s PLP and open the Borrow tab. Click the Deposit button on the right of Shiba Inu and press Enable. Metamask will prompt you to confirm a transaction enabling the deposit of $SHIB into Fringe’s PLP.
- First, enter the amount of SHIB tokens you would like to deposit. Click Deposit and confirm the operation via your MetaMask wallet.
- Click SHIB’s “ ⋮ ” button to open the drop-down menu, and then click Borrow.
- 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.
- That’s it! Your borrowed $USDC will be available in your wallet automatically.
Learn more about Crypto Borrowing and Lending
SHIB 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 Primary Lending Platform, alongside the $USDC lending functionality that allows you to effortlessly earn interest on your $USDC.
About Fringe Finance
Fringe Finance is an innovative decentralized financial ecosystem and a platform. First and foremost, it seeks to unlock the multi-billion dormant capital locked in smaller cryptocurrencies — by offering guaranteed stablecoin loans secured by them.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.