Defrost Finance is a decentralized protocol that enables users to stake liquidity provider (LP) tokens and more from Avalanche – and eventually from other chains as well – to create a new stablecoin, the H2O.
When users employ their crypto assets from decentralized exchanges to mint H2O, they are rewarded with the platform’s governance token called MELT. With this offering, users can enjoy additional use cases for their pooled assets and earn rewards in the process.
The innovative platform is completely fair launch, having prioritized the entire community of users. As such, there are no special privileges between large investors and small investors. Fairness is achieved by eliminating any initial coin offerings (ICO), pre-sale token releases, or any other event that would give one investor group an advantage over the other.
The First Native Stablecoin in Avalanche
Marking Defrost Finance as a pioneer in the blockchain space, the innovative platform’s H2O is the first native stablecoin on the Avalanche chain. More strategically so, H2O takes a very much defined market position presenting the platform and its entire community of users with a lot of opportunities.
The value proposition by Defrost Finance is that investors can reap rewards (MELT) on their LP assets, while minting H2O. Both can then be staked, allowing LPs that would otherwise sit idle to be put to a good use to gain further rewards or for portfolio diversification.
Thanks to the platform’s in-built cross-chain capabilities, in the future it will also be possible to get liquidity from other chains, an attribute that presents an opening for future expansions and collaborations. Among the steps the platform has made so far for H2O is collaborating with Trader Joe and Benqi, with Pangolin waiting in the wings.
Trader Joe is the largest decentralized exchange on Avalanche, while Benqi is a non-custodial liquidity market protocol also established on Avalanche. Pangolin is a community-oriented decentralized exchange for Avalanche and Ethereum assets famous for fast transaction settlement, low fees on transactions, and fair distribution.
Defrost Finance’s H2O helps improve users’ capital efficiency by allowing them to provide liquidity to gain more returns from their trades. The H2O stablecoin is supported by current collaterals that are renowned for value as well as liquidity, reducing financial risks.
Building the first native stablecoin on one of the fastest blockchains in the world, Defrost Finance envisions the development of a fully decentralized stablecoin able to release more liquidity from LP tokens.
The generation of H2O is smart-contract managed and based upon trustless and decentralized cross-chain operations.