Introduction to Flux Protocol!
We are happy to announce the launch of Flux Protocol! Flux Protocol is a borderless lending protocol, where low transaction fees and cross-chain interoperability are the reality! Empowered by Conflux Network, Flux provides a lending mechanism to adjust the interest rates of crypto assets in an automatic and decentralized fashion, incentivizing liquidity in the cryptocurrency market!
The story of Flux:
Looking back at the Black Swan incident on 2020.03.12 as an example, almost all cryptocurrencies experienced plunges in a short period of time, which led to a significant number of liquidated assets on DeFi lending platforms, such a MakerDao or Compound. One triggers the other, the Ethereum network was congested with pending transactions. Borrowers could not repay the outstanding borrowing in time, resulting in collateral loss; liquidators could not obtain assets in time for auctions through transfers. As a result, huge numbers of unwanted assets were taken away by liquidators and liquidation robots at extremely low prices, as low as 0 DAI (~ $0). Instead of repaying the borrower’s collateral value and rebalancing the protocol, borrowers and lending platforms had to endure the massive loss.
After witnessing the losses of the borrowers and the platform, we are determined to develop a new lending platform with more generalized asset templates and better collateralization models that could withstand future market meltdowns. The initial proposal has gained further support from the technical community of Conflux Network: with ETH 2.0 still in its embryonic stage, Conflux Network runs on the metaphorical V8 engines of Flux, drastically improving the efficiency of the interest rate model, liquidation logic, and more features of current DeFi lending products. With the improvements just mentioned, we reveal - Flux Protocol.
Two Highlights of Flux:
High speeds and low transaction fees
Flux is built on the Conflux Network and fully utilizes the network’s high-speed characteristics when it comes to transactions plus smart contract interactions, and enjoy low-transaction fees! Users benefit from both aspects mentioned to securely maintain their assets in a decentralized fashion without having to don’t have to worry about high transaction fees!
Flux uses the ShuttleFlow Protocol for seamless cross-chain asset interoperability, whereas currently, digital assets available on most DApps are limited to the blockchain network they are developed on! Users will be able to lend or borrow digital assets, such as Conflux Network’s native tokens, Bitcoin, or Ethereum-based assets like ETH, DAI, or USDT to enjoy Web3 in a new way!
Everyone is welcome to join our community at any time, and we encourage everybody to finally experience all features we have built into Flux Protocol for you! Join us on Telegram (@flux01) and follow us on Twitter (@zero1_flux) and Medium to be updated from the very start!
Flux Protocol is a borderless lending protocol, where low transaction fees and cross-chain interoperability are reality! Empowered by Conflux Network, Flux provides a lending mechanism to adjust the interest rates of crypto assets in an automatic and decentralized fashion, incentivizing liquidity in the cryptocurrency market!