Tokens of Shiba Inu-themed Floki can soon be used as collateral to borrow a basket of cryptocurrencies on Venus Protocol, the second-largest lending protocol on the BNB chain, Floki developers today told CoinDesk.
The move is part of a broader plan to position Floki – originally a memecoin named after Elon Musk’s pet Shiba Inu – as serious decentralized finance (DeFi) contender.
Venus provides a simple-to-use crypto asset lending and borrowing solution that allows users to directly borrow against collateral at high speed while losing less to transaction fees. It holds over $800 million in locked tokens as of Friday.
Venus will be integrating FLOKI in their Isolated Money Markets, thereby allowing FLOKI holders on the BNB chain to borrow USDT, USDC, BNB, and a basket of other cryptocurrencies while using their FLOKI tokens as collateral.
This allows FLOKI token holders to easily access liquidity without having to sell their tokens.
The move is expected to benefit FLOKI holders, developers say, as they continue to build and seek out strategic partnerships that ultimately benefit the token’s value.
The FLOKI integration process on Venus has started, and this is expected to be finalized in March after which Floki holders will be able to seamlessly lend and borrow on Venus while using their FLOKI tokens as collateral.
FLOKI has so far been one of the strongest performers this year, tripling in value over a 30-day rolling period, as per CoinGecko. Interest in the tokens has heightened in recent months following a $100 million token burn and a push to target Valhalla, Floki’s metaverse game, to the multibillion-dollar Chinese gaming market.
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