What is Fuji Dao? Fuji DAO low interest rate lending platform
One of the problems that digital currency users face in the world of DeFi is the sudden change in interest rates due to market fluctuations. In addition, the increase in interest rates will be unpleasant for them. The Fuji Dao platform is one of the aggregator programs and one of the best lending platforms. This platform allows users to get digital currency loans with low interest rates. In this article, we will give a complete introduction to Fuji Dao and how it works.
What is the Fuji Dao platform?
Fuji Dao lending platform, a kind of protocol Auti-Refinancing Borrow Is. This protocol introduces a program to users who have applied for a loan, which provides a loan with the lowest interest rate. In fact, DeFi users face two major problems, one is the sudden increase in interest rates and the other is the increase in the cost of managing lending resources. Fuji solves each of these problems. This protocol allows the user to receive a loan up to 75% of their assets.
Fuji Dao, as the name suggests, is a Dao-based program (DAO). DAO is a smart contract that is implemented on the blockchain by financing and implementation by programming codes. This platform supports Ethereum and Phantom. Users can hold their Ethereum (ETH) assets as collateral and borrow Dai, Tether, and USDC tokens in return. Fuji DAO strives to support more tokens in the future and facilitate the lending process.
Important features of Fuji DAO
Fuji is very attractive not only because of providing low interest rates in lending; Rather, it provides a very smooth user interface to users. You can use this platform without any complications and confusion and earn profit in the world of digital currency. Another important feature of this platform is finding the lowest price of digital currencies among reputable exchanges. In addition, it introduces you the lowest fees for transactions. With the help of Fuji DAO, you can not only get a loan; Rather, become a lending user yourself.
How Fuji Dao works
In this section, we are going to answer the question, how does Fuji Dao provide low-interest loans to users and lower the transaction cost for them? This platform examines all the lending platforms to provide the best instant loan with a low interest rate. After finding a platform with the lowest interest rate; provides it to the user. The interesting thing is that Fuji performs the refund process automatically. This makes the cost of transactions more reasonable. In addition, the Fuji DAO platform, by pooling users’ assets into pools, reduces access to loans and prevents sudden increases in interest rates.
Advantages and Disadvantages
This project has many benefits for users; Among them, we can mention the reduction of transaction costs, removing the concern of users from constantly tracking the interest rate, and better asset management for loan repayment. Fuji also splits fixed costs. With this, the fee rate will be greatly reduced.
Among the disadvantages of this platform, we can mention the liquidation process. In this case, it is possible that the value of your loan will increase; So you will not be able to cover the debt. In this platform, a parameter called Health Factor is defined. The closer this parameter is to one, the more likely it is to liquefy. To solve this problem, this platform liquidates your position so that it can pay the debt.
How can Iranian users use Fuji Dao?
Iranian users can also use the services of this platform like other countries. Instead of selling Ethereum and receiving USDC, they can deposit Ethereum to borrow USDC. With this, you will have both Ethereum and USDC.
To work with the Fuji Dao program, you must first log in to its official website. After that, by clicking on the APP option, you will enter the wallets page so that you can connect your wallet. In this section, different volts such as Trezor, Ledger, MetaMask And WalletConnect are located Choose one of these volts to connect your property to Fuji. Next, you need to specify which blockchain you want to borrow assets from. For example, there are two options Ethereum and Phantom to choose from at this stage.
The process of getting a loan
After choosing the desired blockchain, you can specify the amount you need for a loan by visiting the Borrow section. If you pay attention to the Borrow window, a factor called Health Factor shows the risk level of your loan. This factor must always be above one.
Loan management
In this platform, a page has been prepared to manage your loans. You can manage loans and how to pay them by visiting the My Positions section. In this section, it is also possible to check the loan health factor; so that you can control your future loans with its help.
The place of Fuji Dao platform among other lending projects
To choose a lending platform, it is better to pay attention to parameters such as platform risk, interest rate, transaction costs, collateral, geographic restrictions and loan term. Currently, there are various platforms for lending in the digital currency market, which have features such as speed, alternative collateral, and high security. Among these platforms, we can Aqru, BlockfiT, Aave And Nexo Cited. The Fuji Dao platform is one of these projects that is in a better position than its competitors due to its unique advantages such as providing the lowest interest rate for loans. Analysts believe that this project will have a very bright future and it is expected that in the future users will be able to borrow more types of cryptocurrencies through it.
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