Unlocking DeFi Potential on Aurora with Flappy Protocol
Decentralized finance brings a level of security and privacy that has been long overlooked. Unlike its centralized counterpart, there is no database to hack into, no honeypot to seize your assets, and best of all, you can remain anonymous. With DeFi, there is no counterparty risk as operations are executed via smart contracts on the blockchain. However, DeFi revolves around the same concepts that govern all forms of financial systems; lending and borrowing.
Lending and borrowing is a fundamental part of the financial system. Whether it is a personal loan, an investment loan, a mortgage, or even leverage trading, the concept is universal. The first loan came from the Babylonian times when they would loan grain out to farmers for a fee. Over time, this evolved into a more formal financial system and with DeFi, the system is now fully trustless and open, enabling the exchange of value between the two parties without involving any financial institution or any counterparty risk
Lending and borrowing are very important to the functioning of the DeFi ecosystem, as they allow funds to flow into the right places. Lending allows holders to put their idle assets to work either to earn interest on it from borrowers or as collateral for borrowing other assets, while borrowing is an essential tool in the trader’s toolbox, allowing them to take advantage of fluctuations in the market or hedge positions with minimal capital risk.
Given the nascent state of Aurora’s budding DeFi ecosystem, a lending and borrowing protocol is one of the critical DeFi Legos for unlocking the potential in the ecosystem. With Flappy Protocol, the wait is finally over.
Just a Flap Away
Flappy Protocol is a protocol that powers lending and borrowing applications, connecting connects lenders, borrowers and data platforms. The platform utilizes smart contracts and economic incentives to create successful ecosystems which provide access to decentralized loans for borrowers, yield for lenders and insights for data providers. It allows borrowers to lock parts of their funds in a protocol and lenders to lend money overtime on a contract that defines the terms of the loan: rate, length, and other conditions. The idea is to allow borrowers to access liquid funds instantly while leveraging the benefits of lending.
Flappy Protocol’s v1 launch will support USDT, USDC, DAI, ETH, AURORA, NEAR. Users will be able to lend and borrow these assets at attractive APR. For lending their assets to the market, lenders receive an auto-compounding, synthetic token called fUSDT, fUSDC, fDAI, fETH, fAURORA, fNEAR and fTRI. This token represents the amount they contributed to the pool and the interest earned by the asset. Just by holding the tokens, users earn interest in the same asset the token represents and though fUSDT, fUSDC, fDAI, fETH, fAURORA, fNEAR are currently non-transferable, subsequent releases will add more utility through various partnerships.
FLP token powers Flappy Protocol. 70% of the total supply will be used for given as incentives for lenders, borrowers and liquidity providers
Flapping with NearPad
NearPad is joining up with Flappy Protocol as an ecosystem and TGE partner. We will be working closely to synergize development across both protocols.
Stay tuned for more updates.