Defrost Finance announced just a few days ago the integration of Chainlink Price Feeds into its project, with the aim of improving its liquidity and lending services, including its own stablecoin, $H2O. Chainlink offers the most reliable source of price data through its oracle, which is essential to keep the stablecoin collateral in perfect condition at all times and avoid external manipulation attempts.
In its integration, Defrost Finance has included AVAX, ETH, USDC, USDT, DAI, and xJOE. The great attraction of Defrost is the ability to use your tokens or LPs from other DeFi applications on the Avalanche network as collateral, and thus be able to mint $H20, its own stablecoin, as well as different farming options. You will be able to use your $H20 in the different strategies on the platform and generate $MELT, the Defrost Finance governance token. It is because of this system that its integration with Chainlink is so important, so its users can now be more confident when it comes to providing liquidity to their platform.
Defrost Finance’s complex system of strategies allows you to generate high interest income if you understand the different options. One example is to use $qAVAX ($AVAX staked in Benqi) as collateral and mint H20, and in turn use it to generate even more interest by providing liquidity in Curve from Defrost. In other words, you generate interest by providing liquidity in Benqi, and at the same time you ‘borrow’ a stablecoin, which you use to provide liquidity in Curve and generate more interest… all from Defrost Finance. Complicated, isn’t it? It’s definitely complex, but if you can get your head around it, you’ll see that it’s a very lucrative strategy.