Hundred Finance Integrates with FujiDAO
Hundred Finance is pleased to announce a major integration that will see its highly competitive money markets made more available than ever. From today, our platform will be integrated with FujiDAO, a burgeoning lending and borrowing aggregator that focuses on cost minimization on the Fantom blockchain. This integration will see their platform able to optimize loan expenses by automatically refinancing the combined positions of their users and taking more cost-effective positions out on Hundred Finance. As a large proportion of DeFi users increasingly turn to protocols that minimize the necessity for active management, FujiDAO’s aggregation service will provide an invaluable means of newer and more nuanced projects, such as Hundred Finance, taking a greater stake in the capital moving throughout the system.
FujiDAO: An Introduction
FujiDAO had its beginnings as a hackathon project created in January of 2021. Having observed the success of yield aggregation protocols, its early team realized that aggregation could also be usefully applied to lending. Not only would it allow for the minimization of interest by granting greater economies of scale, it would reduce the time and energy required to manage a position in a volatile cryptocurrency market and create a smooth and economically efficient user experience for those unable to follow the latest developments in decentralized finance.
FujiDAO does all this by creating vaults where users are able to deposit a single asset as collateral and borrow another asset against it. When a user borrows from a Fuji vault, the needed liquidity is sourced directly from the base protocol providing the best rate. The protocol then tracks the user’s individual position and ensures the vault’s overall health through a classical liquidation mechanism. To avoid liquidation, a user needs to maintain the proportion of their debt to the amount of collateral they provided for that position above a certain threshold. Should market conditions change and a provider with a lower borrow rate for a certain asset emerge, the protocol will trigger a rebalance operation and refinance the whole position of the vault. In that way, users instantaneously get a better rate on their loans without the need to take any action on their side.
Hundred Finance x FujiDAO Integration
Given Hundred Finance is especially devoted to providing stablecoin liquidity and has some of the best rates available for loans taken out in these assets, FujiDAO will automate access to our money markets to their users. This is to the users’ benefit, who will pay a lot more interest, and to the benefit of the Hundred Finance platform, which will accrue fees from the greater volume of borrowing being conducted. What is more, aggregation of lending creates a net positive for the Fantom ecosystem as high gas fees are reduced as the necessity for many individuals to manage their positions is reduced and, as a result, so too is the number of potential transactions occurring on the chain.
With backers including Maven 11, Delphi Digital, Spartan Group, and Origin Capital, we are convinced that FujiDAO represents a valuable collaboration for Hundred Finance and we look forward to seeing our relationship develop further in the coming months.
Using FujiDAO
Using FujiDAO to lend and borrow assets is a simple process. To do so, first visit the dApp and connect your browser wallet.
You will then be presented with a full-feature dashboard that will allow you to select the asset to be borrowed using a qualifying collateral, in addition to the current APR you will pay on the loan (this APR includes a 0.2% addition to the underlying APY that is paid to FujiDAO). Once your collateral has been deposited and you borrowed assets received, you will then be able to monitor the position according to its health factor. Be warned, should either the value of your collateral fall or the value of your borrowed assets increase to the point your health factor drops below 1, your account will become subject to liquidation. This will result in loss of a portion of your collateral plus a liquidation penalty. For full details on the fees paid to FujiDAO, please be sure to carefully read their documents.
Conclusion
We cannot overstate the positive impact we foresee aggregators such as FujiDAO having on DeFi in general and Hundred Finance in particular. Both of our projects share the mission of making the benefits of decentralized finance available to a mass market, and we are confident that the combination of our tokenomic design and Fuji’s ability to appeal to a broad array of users requiring deep liquidity will make major steps forward in achieving this goal. We encourage our users to explore the project and welcome them into our growing number of collaborating protocols.
