CoinFLEX’s repo market has traded $445M since launch and now CoinFLEX leaps into the world of Borrowing, Lending and Stablecoins with the launch of flexUSD, an interest bearing stablecoin that will lend in CoinFLEX’s repo markets and pay interest on the blockchain every 8 hours. CoinFLEX seeks to bridge the gap between the $22 Billion dollars of stablecoins all paying 0% interest and borrow lend desks, derivatives and DeFi projects all with yields often higher than 10% annualised for billions of dollars.
flexUSD will be usable as collateral on CoinFLEX and will be integrated with a number of DeFi platforms where users can effectively earn multiple forms of yield at the same time, the yield from CoinFLEX repo paid to them on chain and additionally the yield from DeFi.
CoinFLEX will also launch interest rate futures that allow repo borrowers to lock in fixed rate 1 month – 12 month loans via a 1 click borrowing tool. Rates will trade directly on a central limit order book, publicly accessible and tradable by any customer. This is a stark difference from the borrow/lend desks in the crypto space today who are entirely opaque dark markets that clear OTC as bilateral loans rather than matching and clearing on a central order book publicly.
Other than repo and fixed rate futures borrowing, CoinFLEX will also be making a play into the unsecured borrowing market through the listing of company specific tokens that help produce unsecured loans to specific trading firms with good credit. Existing borrow/lend desks have over $1 Billion of such unsecured loans but have zero transparency with their user base about the nature of these loans and will take an enormous interest spread between the retail lender and the trading firm borrowers. With transparency and order books, CoinFLEX can provide a better deal for borrowers and lenders without taking any credit risk itself.
Unlike the borrow/lend desks that operate today, all of CoinFLEX’s offerings will be 100% transparent and public, listed on 24/7 tradable order books and transferable on the blockchain outside of CoinFLEX. flexUSD will only take part in completely secured lending via repo, which enables it to be redeemable 1:1 for USDC at all times. Additionally all activities will be entirely automated, enabling borrowers to borrow up to $10M in a few clicks via an interface, rather than a chat room where there is uncertainty as to whether the borrower is getting the same rate as a larger client, despite both being collateralised.
With these innovative products, CoinFLEX’s customers will now also have the same opportunities as large institutions to participate in a wide range of interest rate and credit opportunities in crypto markets.