The DeFi sector has experienced explosive growth over the past year, with an increasing amount of TVL being locked into its protocols. However, there are still all sorts of issues associated with capital inefficiencies in DeFi, which do pose quite an obstacle to its further adoption.
To that end, there has emerged a new community-led project called CHFRY Finance that uses flash loan infrastructure to develop more user-friendly and accessible tools, allowing more crypto players to gain further avenues of revenue, leverage, and capital efficiency. Most recently, CHFRY Finance has announced the upcoming launch of Flash Leverage, the most affordable 100% decentralized leverage trading platform that is powered by flash loans.
What is CHFRY Finance?
CHFRY Finance is an unique DeFi protocol that aims to democratize DeFi by developing accessible financial solutions and unlocking capital efficiency through a low-fee, intuitive platform driven by flash loan powered applications. Back in October, 2021 the CHFRY team launched its lending platform that enables automatic debt repayment via streaming yield/interest from diversified high yield strategies.
The platform permits users to deposit various stablecoins (USDC, USDT, or DAI) as collateral to borrow against, and then deploys this collateral into DeFi yield aggregators (Yearn Finance vaults) and CHFRY flash loan pools to create yield that pays off the loan automatically. As a result, a user takes out a loan in the form of $fUSD (a synthetic derivative backed by a basket of top stablecoin assets at a 1:1 ratio), which repays itself with zero risk of liquidation, and without any interest to be paid. Essentially, CHFRY manages to increase capital efficiency by merging yield aggregators with the yield-based debt model and diversifies yield sources through flash loans.
Details about Flash Leverage
CHFRY’s newest product, Flash Leverage, allows for the most affordable on-chain leveraged trading experience. Flash Leverage enables users to execute leveraged long and short positions on a variety of assets and alter their positions by adding margin as needed. The long positions are intended for those who are bullish on market conditions, and seek to profit from price appreciation of target assets, while short positions are for those who are bearish, and seek to profit from price depreciation. The leverage is obtained by merging and smoothly integrating various DeFi legos such as CHFRY Flash Fryer (the underlying flash loan provider platform), AAVE V2 (the underlying lending protocol), and Uniswap (the underlying AMM).
To put it another way, the application integrates flash loans, AMMs, and on-chain lending protocols to deliver a leveraged solution at remarkably low cost, which is on average 80% cheaper as opposed to other protocols. Moreover, there are no funding rates, platform fees, or custody of assets either. It would hence not be an exaggeration to simply call this a one-click solution for the cheapest, 100% decentralized leverage trading.
Right now, Flash Leverage is available on the Kovan Testnet, where users can test their margin trading skills within the test environment and prepare for the eventual mainnet launch (which is right around the corner, along with the highly anticipated trading competition).
Is CHFRY worth it?
Ultimately, there are so many projects within the DeFi space now that it can often prove difficult to ascertain which ones are worth investing in. However, if CHFRY’s past accomplishments like launching the CHFRY mainnet in October, holding the TGE of $CHEESE via the IDO, developing the cheapest on-chain leveraged trading tool powered by flash loans (now live on Testnet), and winning the MoleDAO Web 3.0 Hackathon in January are anything to go by, then it would seem as if the team really does know what it’s doing.
There is also an ongoing feedback campaign with 2,000 $CHEESE in rewards and an ongoing first time depositor campaign as well, with 10,000 $CHEESE in rewards up for grabs. Also, BSC will be launching very soon and CHFRY’s future plans involve DAO development, adding more collateral types for the lending platform and creating more flash loan powered applications.
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