Defrost Finance Defi Coin Review : It Is Legit Or Scam?

About Defrost Finance

Defrost Finance (www.defrost.finance) is a decentralized protocol that allows you to utilise liquidity pool (LP) tokens and other pool tokens from various Avalanche and cross-chain protocols as collateral for generating H2O, a soft-pegged stablecoin native to the Avalanche ecosystem.

Defrost Finance Coin helps users improve capital efficiency from assets locked in pools or vaults. Defrost Finance allows users to provide liquidity to gain additional yields from features such as farming, borrowing, staking, swap, and bridge support for convenience when trading.

Defrost Finance gives birth to a stable coin, H2O, which is backed by existing collateral with a proven record of value and stability. H2O can be minted by depositing collateral such as liquidity provider tokens from AMM (automated market maker) dexes (decentralised exchanges), lending, and other DeFi protocols.

The project envisions creating a stable coin that is not USD-backed and at the same time releases more liquidity from Liquidity Provider tokens (LP tokens).LP tokens collected from different chains and protocols can be used as collateral for minting H2O. The minting and burning are fully controlled by smart contracts. The overall mechanism is based on trustless and decentralized cross-chain functions/bridges.

Unfreeze Your Way to Wealth

Defrost Finance is the platform behind the next generation stablecoin and provides remunerative investment opportunities. A fully fair launch, decentralized project, its aim is to change the world of finance for good.

A New Stable coin Minted with LP Tokens

Backed by Liquidity Provisions tokens, H2O is the stablecoin of the future, maintaining a 1:1 peg to the US dollar at all times. It is safely overcollateralized and capable of powering any financial instrument.

Get Your MELT and Join Defrost

Defrost is a community-based project. Participants can deposit their assets in Liquidity Pools from swaps and mint H2O to acquire MELT, the platform’s governance token. This not only allows you to stake assets but gives you a seat at the table when decisions are made.

The H2O Stable Coin

H2O is a stablecoin that can be minted by staking different LP tokens or other pool tokens in a vault, which will always be over-collateralized. It is soft pegged 1:1 to the U.S. Dollar. Its stability is not mediated by any central party, nor does its solvency rely on any centralized authorities. LP tokens or pool tokens with abundant liquidity and market value can be used as collateral to mint H2O. This means that all circulating H2O is generated from vaults in Defrost smart contracts, and it can be used in the same manner as any other cryptocurrency.

MELT

MELT is Defrost’s utility token, a governance token with a fair launch distribution model. MELT can be used for rewards, fees, insurance and voting power in the protocol. It will be distributed via a fair launch distribution model. The majority of MELT tokens will be distributed to H2O suppliers and holders.

Security

Multi-Signature Control

The contracts were audited by Certik in November 2021. As for the centralization problem, it is solved by the Multi-Signature Controlling Account. There are five Multi-Signature Keyholders, controlled by Avatar, Wanlabs and the team separately. Defrost Finance will further diversify the centralization as the DAO is formed.

Non-upgradable Contracts

All contracts of Defrost Finance cannot be upgraded. The manipulation by the contract manager becomes impossible.

The Reserve Pool

Defrost Finance is maintaining a Reserve Pool, as the insurance for the protocol safety. The H2O assets in the Reserve Pool are collected from the Stability Fees and Liquidation Penalty. In cases when the protocol fails to liquidate the vaults falling below the Minumum Collateral Ratio, or some other scenarios leading to the protocol deficit, the Reserve Pool will take the responsibility as the compensation.