Orby Network Unveils Interest-Free Borrowing with Launch of First Cronos Stablecoin
The Cronos-based cryptocurrency lending protocol Orby Network has made interest-free $USC borrowing available. Because of this, borrowing Orbys native stablecoin over the Cronos network for decentralized finance objectives is possible without having to pay exorbitant or variable interest costs.
On the Cronos EVM blockchain, Orby is one of the most popular contemporary platforms. Users may produce and borrow $USC using certain collateral. Interest-free borrowing of $USC will increase capital efficiency for Orby users and increase liquidity on Cronos.
With a soft peg to the US dollar, $USC functions as an overcollateralized stablecoin. It is intended to serve as a unit of account, a store of value, and a medium of exchange. Borrowers of $USC may continue to be the owners of their cryptocurrency holdings and profit from any increase in value, all the while being able to use $USC for other ecosystem activities.
For customers who want to borrow stablecoins, DeFi lending services often charge an interest rate that varies between two and six percent. The amount of interest payable increases with the length of time a stablecoin is borrowed and the level of borrow utilization on a protocol.
Orby wants to encourage more economic activity on the network, so it decided to enable interest-free borrowinga first for Cronos. Users are not restricted by interest payback terms and are able to borrow $USC for an extended period of time.
Orby users may deposit specific cryptocurrency assets into the protocol and utilize those assets as collateral to borrow $USC when interest-free borrowing becomes rolls out. They may also get liquidator fees by providing $USC to Orbys Stability Pool.
When borrowing $USC, the only charge that has to be paid is a one-time borrowing fee, which isnt required until the USC is returned. As with other over-collateralized lending protocols, users must make sure their debt position is stable in order to avoid liquidation.
Among the proposals chosen for the third batch of the $100 million Cronos Accelerator Program is Orby Network. The programs goal is to accelerate the general adoption of Web3 by targeting early-stage crypto companies and offering them financing and coaching to foster innovation and development within the Cronos ecosystem.
Charlotte Kapoor, Head of Innovation Programs at Cronos Labs stated:
Orby forms an integral part of the DeFi ecosystem that is taking shape on Cronos. The introduction of interest-free $USC borrowing on Orby will strengthen its status as a cornerstone of Cronos DeFi while unlocking new financial opportunities. Were excited to support and nurture Orby with the tools required to build new innovative products for our users as part of our latest accelerator cohort.
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
