Flow Launches Flow Credit Market: A Canonical Automated Lending Protocol For Consumer DeFi
Consumer Layer 1 community Flow introduced plans to advance its improvement roadmap by making a collection of foundational protocols, starting with a credit score market.
Future protocols could broaden to incorporate perpetual contracts, prediction markets, and different monetary devices. These protocols are meant to perform as open monetary primitives, supporting a brand new technology of Consumer decentralized finance (DeFi) functions geared toward mainstream adoption.
Each foundational protocol might be launched alongside a number of flywheel functions, developed both by Dapper Labs or different strategic ecosystem companions.
The first of those protocols, Flow Credit Market (FCM), is the canonical automated lending protocol for the Flow community.
FCM is designed to symbolize an enchancment for decentralized finance by leveraging Flow’s native on-chain scheduling capabilities to execute recurring triggers with out reliance on exterior oracles. This strategy maximizes loan-to-value ratios whereas minimizing liquidation danger, naturally growing yields for each lenders and debtors. Internal simulations point out that FCM would have protected person deposits from liquidation in all market downturns over the previous 5 years.
In order to help FCM, Dapper Labs is introducing Peak Money, a flywheel software for client finance. Peak Money goals to function an entry level for the subsequent 100 million customers into crypto, aggregating yield alternatives throughout a number of blockchains and presenting them by means of a seamless, mobile-first interface. The waitlist for Peak Money is now open at peak.cash.
The ecosystem mannequin establishes a transparent construction: the Flow Foundation builds the enduring utility, Dapper Labs or different strategic companions launch flywheel functions concurrently, and the neighborhood inherits a powerful, liquid basis supported by a sustainable income mannequin.
Flow Updates Transaction Fees As Network Enters Second Phase, Shifting To Deflationary Token Model
The preliminary transaction payment construction on Flow was designed to advertise client adoption by conserving prices low, lowering onboarding friction, and enabling fast community development. This strategy efficiently supported a various vary of functions and contributed to the community’s total maturity.
As Flow enters its second part as a extra established community, the introduction of automated methods by means of the FCM is anticipated to drive a big improve in transaction quantity, partly as a result of on-chain scheduler. In response, a network-wide replace to transaction charges is being carried out, signaling a strategic shift from sponsored development towards a deflationary token mannequin and sustainable worth accrual.
The up to date payment construction establishes a direct connection between community utilization and token worth, with the mannequin designed to make the FLOW token internet deflationary at a sustained throughput of 250 transactions per second, a stage anticipated as FCM and functions like Peak Money conduct frequent on-chain rebalancing for customers.
Despite the anticipated rise in transaction exercise, Flow’s environment friendly structure ensures that charges stay considerably decrease than these on different networks reminiscent of Solana and Base, with out sacrificing decentralization. The community continues to be one of many few blockchains able to scaling to hundreds of thousands of each day lively customers whereas avoiding risky and unsustainable fuel spikes for builders and customers.
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