The advantages of Fantom Finance
Fantom Finance is a feature-rich DeFi suite. It includes its own stablecoin – fUSD – and decentralized synthetic asset trading, lending and borrowing. It marks the launch of DeFi activities on Fantom.
The ecosystem is permissionless, composable, and interoperable, so anyone can expand it by:
- Building dApps on Fantom Opera
- Integrating Fantom Finance products on other chains
- Bringing other tokens to Fantom Finance
Fantom Finance is a true DeFi experience, allowing users to always be in control of their funds and trade, borrow and lend synthetic digital assets.
Starting with an all-in-one DeFi suite
On fMint, you can supply your FTM to mint fUSD, a token pegged 1:1 to the US Dollar. You can then use your fUSD to trade, lend and borrow on Fantom.
To unlock your FTM, you only need to repay the fUSD you minted.
In the future, users will be able to use staked tokens as collateral, earning staking rewards while making a portion of the amount liquid for other uses like lending, thereby increasing capital efficiency.
Additionally, other tokens will be added as collateral, such as OKB, WAVES, ONT, TOKO and ETC.
Trade synthetic assets
On fSwap, you can buy and sell synthetic assets to gain price exposure to 176 tokens like BTC and ETH. Synthetics on Fantom track the price of an underlying asset via decentralized oracles.
Synths are not limited by the availability of the asset, so they don’t suffer from liquidity issues. Furthermore, trades are executed at the target price without slippage.
Borrow and lend
On fLend, you can lend your FTM, fUSD or synthetic assets to earn interest, or borrow funds to execute your favorite trading strategy.
A growing network based on permissionless composability
Permissionless composability lets developers and users freely combine a variety of components to create new products.
Composability on Fantom
Fantom Finance runs on Fantom Opera, a public and permissionless Layer-1 protocol.
Developers can build dApps on Fantom and EVM support makes it easy and accessible to port dApps built on Ethereum for anyone familiar with Solidity. All Fantom’s code is open-source and available on Github.
Cross-chain bridges can free up the tremendous value stuck on other blockchains.
Other protocols such as yearn.finance or Curve can potentially integrate fUSD and other Fantom tokens, providing additional utility to our users and expanding their user base. This also works the other way around, as Fantom brings other tokens to Fantom DeFi.
Addressing current issues in DeFi
Fantom’s aBFT consensus makes trading on Fantom Finance fast, cheap, and secure.
- Fast: Lachesis parallelizes transaction processing and minimizes communication overhead within the system to achieve high throughput with almost instant finality
- Cheap: Transactions cost a fraction of a cent
- Secure: The network is secured via Proof-of-Stake and independent validators across the globe, providing Byzantine Fault Tolerance
To learn more about Lachesis, check out our website.
Stay tuned for more DeFi on Fantom!