Defrost Finance, the first stablecoin native to the Avalanche chain, has officially begun a fair launch for its community-focused platform. Upon launching, Defrost also announced backing from Avalanche Asia Star Fund and collaboration with leading Avalanche protocols Benqi and Trader Joe.
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At the core of Defrost’s offer is the ability for users to mint H20, their stablecoin, by committing Liquidity Pool assets they already have on decentralized exchanges and other platforms. H20 is overcollateralized and users are rewarded with MELT, the platform’s governance token. Both tokens will be available for staking on different pools, providing additional earning potential for Avalanche users.
The process is simple. By leveraging Liquidity Pool tokens on other decentralized exchanges and DeFi protocols, users can mint H20 at a 1:1 ratio with the US dollar. The LP tokens are used as collateral to mint H20, with a variety of assets being eligible.
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After minting the stablecoin, users are rewarded with MELT, which can be used to access various staking opportunities and Defrost’s governance voting. The nature of the platform is to give full flexibility to users to maximize their DeFi strategies and earn rewards by being active participants in what is a community-focused platform now but will become a full DAO down the line.
“We believe decentralization is the way to go both for users and founders, as it grants a fairer distribution and a better way to engage the community,” says the core team. “That is why we have chosen a completely fair-launch model for Defrost. There have been no ICOs, pre-sales of tokens, or even IDOs. Everyone will be able to mine MELT without special privileges being granted.”
In the future, Defrost plans on expanding to other chains its cross-chain functions and bridges will make this a convenient process for users on the protocol.
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