Element Finance revealed, in its announcement of 20th June, stating that it has been formally incorporated into the Mainnet of Ethereum, following the research as well as the development of one year. It has been targeted by the protocol to deliver huge yields of consistent rates to DeFi in an attempt to expand capital efficiency. The consumers will be allowed to purchase USDC, ETH, and BTC at discounted rates rather than the fixed prices. During the first days of April, $4.4M has been raised by Element Finance through a seed round led by Placeholder and Andreessen Horowitz.
High yields by complying with the fixed terms
The initial of the terms is an initiative of crvLUSD for three months in which the protocol of Curve Finance is utilized to balance the pool of Stablecoins. More than $16M had been accrued by the term of 90 days, during the first few hours after the launch, which takes the group in confidence for another term to be launched. The team stated that they were much impressed by the progress and popularity of the current term and determined to include another crvLUSD term comprising six months to see what difference it makes in response to the previous one.
The co-founder and CEO of Element, Will Villanueva, argued that the protocol was already offering incredible offerings. The positions of the base assets are divided into two separate individual tokens named the yield token and the principal token. The users are enabled to trade the principal tokens as an income position of fixed-rate, by which extended leverage to the interest can be acquired without taking the risk of any liquidation.
DeFi’s fixed rates
There are many platforms other than Element that delved deep into digital finance’s yields having fixed rates. A report came during October 2020, which described that the latest type of yield token (operating on fixed rates) was launched by Yield Protocol, enabling the customers to lend and borrow according to the fixed-term by utilizing the Stablecoin of MakerDAO named ‘DAI’.
National Finance, in April, gathered $10M during a seed round which was initiated by Pantera Capital. A lending platform of fixed rate has been offered by this protocol. The platform provides the customers with the required confidence to schedule future borrowing following their crypto assets.