Borrowing USDC with SAND: A Guide by Fringe Finance

Fringe Finance, an all-new and inclusive DeFi lending platform, saw the integration of $SAND as a collateral type into its Primary Lending Platform (PLP). With Fringe’s PLP, borrowers can take out $USDC loans against their altcoins. Now $SAND holders will get access to stablecoin loans and will be able to unlock part of the value of their positions without selling their tokens. 

Below, we’ve prepared a short tutorial on borrowing $USDC with Sandbox tokens.

How do $USDC Loans work?

Through Fringe Finance, you can take out instant $USDC overcollateralized loans against:

• $MATIC (Polygon)
• $SAND (The Sandbox Token)
• $MANA (Decentraland)
• $FOX (Shapeshift FOX Token)
• $LINK (Chainlink)
• $TOMOE (ERC-20 $TOMO) (Tomochain)
• $REN (Ren Protocol)
• $IOTX (IoTeX)
• $BNT (Bancor)
• $OGN (Origin Protocol)
• $LDO (Lido Finance)
• $SHIB (Shiba Inu)
• $APE (Ape Coin)

Here’s how it works: 

On the Primary Lending Platform, you can deposit altcoins into your personal collateral safes. Your wallet is the only key to moving the assets on your collateral safes. You, and only you, maintain full control of your assets throughout the duration of your loans. Fringe’s PLP has been doubly audited by HashEx and CyberUnit; thus, it has the highest standard of security in crypto. Still, we encourage users to always do their own research before dropping assets to a smart contract.

Once assets have been deposited into the platform, you may take out loans against your holdings. The amount a user can borrow depends on the total value deposited in the collateral safe, the asset’s maximum borrowing capacity, and the asset’s loan-to-value ratio (LVR). $SAND current LVR in Fringe’s PLP is 43% — depositing $1000 worth of $SAND allows a user to borrow up to 430 $USDC.

Outstanding loans accrue interest continually. This interest, however, does not increase proportionally as your $SAND increases in value. This means that any gains from your $SAND position are entirely yours. If your $SAND drastically depreciates, your position may become undercollateralized and subject to liquidation. In other words, the platform will be allowed to sell an equivalent amount of your deposited $SAND plus a liquidation fee to settle your loan.

What is SAND?

The Sandbox is a virtual Metaverse built on the Ethereum blockchain, where players can build, own, and monetize their gaming experience. The SAND token is the native ERC-20 utility token of the project that is used for value transfers as well as staking and governance.

How to borrow USDC with SAND on Fringe Finance

You can get an instant $USDC loan with $SAND in five easy steps.

1. Go to Fringe Finance’s PLP and open the Borrow tab. Click the Deposit button on the right of the Sandbox token and press Enable. Metamask will prompt you to confirm a transaction enabling the deposit of $SAND into Fringe’s PLP.

2. First, enter the amount of $SAND tokens you would like to deposit. Click Deposit and confirm the operation via your MetaMask wallet.

3. Click Sandbox’s “ ⋮ ” button to open the drop-down menu, and then click Borrow.

4. Enter the amount of $USDC you want to borrow, taking care to keep the Health Factor as far from 1 as reasonable to avoid being liquidated. Click Borrow and confirm the operation via your MetaMask wallet.

5. That’s it! Your borrowed $USDC will be available in your wallet automatically.

How to repay your loan

You can repay your $USDC loan in three easy steps.

1. On the Borrow tab of the Fringe Finance’s PLP click Repay.

2. Enter the amount of $USDC you want to repay. Click Repay and confirm the operation via your MetaMask wallet.

3. After the successful confirmation of the transaction, your loan will be repaid. Hence, you will be able to withdraw your deposited $SAND by clicking Withdraw.

Learn more about Crypto Borrowing and Lending

SAND is one of the top altcoins that can be used as collateral to get an instant loan on Fringe Finance. You can check other accepted altcoins on our Primary Lending Platform, alongside the $USDC lending functionality that allows you to effortlessly earn interest on your $USDC.