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Fortress Protocol gives users the ability to earn compounded interest by supplying various cryptocurrency assets that can then be used as collateral for a loan, supplied as liquidity, or to mint stablecoins. Assets that are supplied as liquidity on Fortress, receive compounded interest, from every block that is produced.
On a peer-to-peer platform, or on an exchange, users' assets are traditionally matched with others, before a transaction occurs, causing excess costs and time lost. Fortress has improved on this market inefficiency by aggregating users assets, and making assets fungible. By pooling assets, this process is able to provide much more liquidity than other platforms, unless all of the assets in a money market are borrowed, as well as gives our users the ability to withdraw their assets at any time.
This is done in a clever way, by utilizing Fortress fTokens. Assets that are provided to a certain money market, are represented by the lower case ‘f’ denomination. The fToken system enables users to tokenize their assets, and freely move the fTokens around to cold storage, other wallets, or other users.
After supplying your BTC, for example, you will receive fBTC, and you will need the fBTC in order to redeem your BTC collateral when you’re ready to withdraw.