Introducing Fountain Protocol
Since the explosion in popularity of the decentralized finance ecosystem in 2020, lending platforms have become core infrastructure within the crypto industry. Not only do they provide users the ability to leverage their crypto assets, obtaining liquidity from their investment while simultaneously earning interest, but they also underpin the workings of other protocols.
However, the burgeoning crypto lending market is not without its downsides. For one thing, borrowers and lenders are limited to assets that are native to the blockchain in question, usually Ethereum. And for another, they’re at the mercy of high network fees on the blockchain in question — again, usually Ethereum.
Not only has this served to constrain the available assets that can be collateralized, lent, and borrowed, but it’s priced small DeFi users out of the market due to the unreasonably high fees; interacting with the smart contracts that control lending protocols can easily run into the hundreds of dollars.
To resolve those problems, we are excited to announce Fountain Protocol, a new crypto cross-chain lending protocol built on Oasis. Taking advantage of the extremely efficient and low-cost Oasis Network, the Fountain Protocol will provide an open-finance space where lending and borrowing are unstoppable and accessible to all.
More Than a DeFi Lending Protocol
Fountain is more than a lending and borrowing protocol; it is a decentralized one-stop platform for managing DeFi assets, even across multiple scenarios such as liquidity mining, lending, and leverage trading.
With the launch of Fountain protocol, we will tackle 3 important pillars.
-Interoperability
-Efficiency
-Simplicity
Interoperability
The lack of interoperability in the current blockchain ecosystem is one of the largest hurdles to overcome required to usher in the new, decentralized, open, financial system. Central to our plans to establish Fountain in the field of on-chain lending and borrowing, is the bridging of multiple chains to create a multi-chain, interoperable, future in which the segregation of blockchains does not exist.
The protocol will allow users to leverage assets across blockchains to be used for borrowing and lending activities.In simple terms, users can supply assets in chain A and assets in chain B, thus participating in enjoying the mining revenue of chain B. This innovation will have the major advantage and broaden the number of assets we are able to cover and where we offer our services.
Efficiency
The rapid rise in the popularity of DeFi has brought about a rapid rise in fees on the Ethereum blockchain. There’s no doubt that this restricts accessibility; one of the core tenets of decentralized finance.
But fees are not the only entry barrier to the world of decentralized finance. As the most important parts of DeFi, lending protocol and DEX rarely intersect with each other, resulting in lower asset utilization. Moreover, users can hardly long or short an asset on any DEX. This is contradictory to the goal of an open, decentralized, accessible system.
To resolve this problem and take DeFi to the next level, Fountain addresses this barrier to entry through several ways:
-Lower gas fees. Based on the extremely efficient and low-cost Oasis Network, we can enable a more accessible, faster, and open financial ecosystem. Moreover, offering different types of liquidity: ROSE, Stable Coin, and other assets.
-Leverage trading. The ability to use DeFi protocols for leverage trading/investing provides users with incredibly lucrative opportunities, since they have access to capital, they would not be able to use. Fountain Protocol can be used to long and short through the integration of DEXes and DEX aggregators, capital efficient and decentralized means to long and short cryptocurrency is freely available to our users.
-Fixed rate deposit/lending. Especially for volatile assets, fixed-rate lending allows users to take more aggressive positions and rewards all parties in the process with greater ROI. Fountain pools will provide users with stable APR products.
Simplicity
Loans should be straight-forward, accessible, and affordable. At Fountain, we’ve developed a truly accessible interface where users, novice or otherwise, are guided through the process and receive smart notifications based on their behaviors.
Our user experience and flow enable users to easily deposit assets to supply liquidity, provide collateral to access a loan, and earn rewards by depositing your LP tokens or staking FTP tokens.
With our open, bold, and innovative approach, Fountain is set to reshape the DeFi landscape. With an accessible, user-friendly, and Interoperable solution to decentralized finance, we’re set to tear down the barriers of DeFi; the evolution in the financial system which should have no barriers of entry from the outset.
FTP and its Tokenomics
FTP, the governance token of the Fountain Protocol, sits at the center of the Fountain ecosystem. FTP serves two main purposes:
Governance
FTP token holders will be empowered with the ability to sculpt the future of the Fountain ecosystem, including voting on; product features, token utility, and which chains are to be included in the protocol.
As Fountain matures, the protocol will undergo and eventually be governed by a DAO consisting of FTP token holders and governance structures both on-chain & off-chain.
Rewards
Both lenders and borrowers will be rewarded with FTP for their participation in Fountain markets. FTP will be distributed as rewards to lenders and borrowers daily. Users will be also rewarded for staking FTP and deposit LP tokens in the Fountain ecosystem.
The Roadmap
The first step in our journey is a public test of the products using Oasis testnet, which will be incentivized with FTP tokens for participating addresses. You can help test by obtaining some TEST tokens on the faucet at https://ftp.cash/dashboard/faucet and use the money markets at https://ftp.cash/dashboard/.
Along with the public testnet, we are launching our Airdrop event, users need to complete certain tasks to be whitelisted, the airdrop tokens will be available to claim when we launch the mainnet product. Read more here: https://twitter.com/fountainprot/status/1493228722408804358.
The most important purpose of the testnet is to gather feedback from the community so that we can improve our product. During the testnet period, users can try out our product and provide feedback to us, we will provide token rewards for those valuable feedback.
Join us on our social channels below to provide feedback.
Twitter: https://twitter.com/fountainprot
Discord: https://discord.gg/tTxBspHqep
Telegram: https://t.me/fountainproto
Medium: https://medium.com/@fountainprot
