Orby Network Launches First Cronos Stablecoin to Support Interest-Free Borrowing
Hong Kong, Hong Kong, February 8th, 2024, Chainwire
Orby Network, the Cronos-based protocol for crypto lending, has introduced interest-free borrowing of $USC. As a result, Orby’s native stablecoin can be borrowed and utilized for decentralized finance purposes on Cronos network without incurring high or unpredictable interest fees.
Orby is one of the most popular emerging platforms on EVM blockchain Cronos. Users can use selected collateral to create and borrow $USC. The introduction of interest-free borrowing of $USC will deepen liquidity on Cronos and drive greater capital efficiency for Orby users.
$USC operates as an overcollateralized stablecoin that is soft-pegged to the US dollar. It’s designed to function as a store of value, unit of exchange, and unit of account. Users who borrow $USC can retain ownership of their crypto assets and capitalize on any appreciation in value while remaining free to utilize $USC to participate in other ecosystem activities.
DeFi lending platforms typically charge an interest rate that could fluctuate between 2-6% for users who wish to borrow stablecoins. The longer a stablecoin is borrowed and the higher the borrow utilisation on a protocol, the greater the dollar amount of interest that must be paid. Orby’s decision to support interest-free borrowing is a first on Cronos and aims to stimulate greater economic activity on the network. Users can borrow $USC for as long as they wish without being constrained by interest repayments.
Following the rollout of interest-free borrowing, Orby users are able to deposit selected crypto assets into the protocol and use these as collateral to borrow $USC. They also have the opportunity to earn liquidator fees by providing $USC to Orby’s Stability Pool. The only fee that must be paid when borrowing $USC is a one-off borrowing fee which is not due until the borrowed USC is repaid. Similar to other over-collateralized lending protocols, users will also need to maintain the health of their debt position to ensure they do not get liquidated.
Orby Network is one of the projects selected for the third cohort of the $100M-backed Cronos Accelerator Program. The program targets early-stage crypto projects and provides them with mentorship and funding opportunities to encourage innovation and growth within the Cronos ecosystem and help propel the widespread adoption of Web3.
Charlotte Kapoor, Head of Innovation Programs at Cronos Labs added “Orby forms an integral part of the DeFi ecosystem that is taking shape on Cronos. The introduction of interest-free $USC borrowing on Orby will strengthen its status as a cornerstone of Cronos DeFi while unlocking new financial opportunities. We’re excited to support and nurture Orby with the tools required to build new innovative products for our users as part of our latest accelerator cohort.”
About Orby Network
Orby Network is a decentralized stablecoin lending protocol on Cronos. It allows users to deposit crypto assets and to borrow $USC, an over-collateralized stablecoin, without incurring high or unpredictable interest fees. As a result, users can productively deploy their digital assets and take advantage of other DeFi opportunities on Cronos.
For more information, visit https://orby.network/
