Fraxlend
Fraxlend is a lending platform that allows anyone to create a market between a pair of ERC-20 tokens. Any token part of a Chainlink data feed can be lent to borrowers or used as collateral.
How it work
Lenders are able to deposit ERC-20 assets into the pair and receive yield-bearing fTokens. As interest is earned, fTokens can be redeemed for ever-increasing amounts of the underlying asset.
Fraxlend also supports the ability to create custom Term Sheets for over-the-counter debt structuring. Fraxlend Pairs can be created with features like: maturity dates, restricted borrowers & lenders, under-collateralized loans, and limited liquidations.
Lending
Lenders deposit Asset Tokens into the Pair and in return receive the corresponding number of Asset Shares (fTokens) depending on the current Share Price.
At any time a Lender can exchange their fTokens for the underlying Asset Tokens at the rate given by the current price. The fToken Share Price increases as more interest is accrued.
Accruing interest is the only operation which can change the Share Price. Because interest accrual is always positive, the number of Asset Tokens that each fToken is redeemable for cannot decrease.