The team behind the meme-inspired cryptocurrency Floki Inu ($FLOKI) has brought in new decentralized finance (DeFi) possibilities to token holders of the meme-inspired cryptocurrency through a new partnership with Inverse Finance.
According to an announcement the team shared on Medium, the partnership with decentralized finance platform Inverse Finance allows $FLOKI investors to access $FLOKI-backed loans and stake their meme tokens and earn Inverse Finance’s native $INV token.
So far over $45 million worth of $FLOKI have been moved onto the Inverse Finance platform according to Etherscan data. Nour Haridy, founder of Inverse Finance, noted on Twitter that in only an hour over $20 million worth of $FLOKI had been sent to the platform.
Projects like Inverse Finance use smart contracts to offer financial services to their users. Through it Floki Inu holders can now use their $FLOKi as collateral to take out a loan in the form of DOLA, a stablecoin issued by the platform that is pegged to the value of the U.S. dollar.
The Floki Inu pool that was launched has a collateral factor of 50% , meaning that $FLOKI holders will only be able to take out FLOKI-backed loans whose value is of 50% of the tokens they have on the platform. While these loans have no expiration date, CoinDesk reports, if the value of a user’s collateral drops so the borrowing limit goes over 100%, the loan is liquidated and a 13% fee is taken on top of repayment to the liquidations.
Floki Inu was added to the platform after an on-chain governance proposal was passed by the Inverse Finance community. As CryptoGlobe reported, the Floki Inu team recently entered a strategic partnership with cryptocurrency market maker Wintermute, which has a cumulative trading volume of over $1.4 trillion and is responsible for over $8 billion in daily trading volume.
Floki Inu has also recently announced it’s integrating with Chainlink ($LINK) and its oracle in a bid to enter the decentralized finance (DeFi) space and offer holders numerous possibilities.
In a tweetstorm, the Twitter account tied to Floki Inu first started by pointing out that smart contracts as a “great innovation” that is limited in what it can make possible because of its “inability to access off-chain data.” An oracle, they wrote, solves the problem by “feeding them real-world data in a way they can understand.”
The integration, according to the Floki Inu team, could allow token holders to soon be able to stake, lend, and borrow using their tokens. The integration with Chainlink would, as such, allow FLOKI holders to use their funds as collateral on decentralized finance protocols and take out loans without losing exposure to the meme-inspired cryptocurrency.
The cryptocurrency has recently launched an ad campaign in Israel that is set to be featured in the country on “8 premium walls” as well as “180 billboards & signs” in Israel’s “20 most important cities.”
Floki Inu also launched earlier a campaign on London’s public transport system with the slogan “Missed Doge? Get Floki” in a bid to “legitimize” the cryptocurrency and increase the “confidence of the average consumer” to buy it, according to the project’s head of marketing, which went by Sabre.
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Featured image via Floki Inu’s website