Last Updated on March 1, 2024 by Olga
Curious about Fetch.ai? Let’s explore this innovative platform that merges technology and AI to transform our digital experiences. Discover the ins and outs of Fetch.ai and how it’s reshaping the tech and AI landscape.
What Is Fetch.ai (FET)?
Established in 2017 and introduced through IEO on Binance in March 2019, Fetch.AI is an AI laboratory developing a decentralized machine learning network with a crypto economy. Through their innovative approach, Fetch.ai allows for universal access to AI technology by utilizing a permissionless network where individuals can connect and securely access datasets. The Fetch.AI framework applies to various use cases, including optimizing DeFi trading services, transportation networks (such as parking and micromobility), smart energy grids, travel systems, and other intricate digital platforms that rely on extensive datasets.
What Makes Fetch.ai Unique?
FET, the utility token of Fetch.ai, serves as a vital component for smart contracts and oracles on the platform. By utilizing FET tokens, users can easily build and deploy their own digital twins on the network. Developers can also access machine-learning-based utilities by paying with FET tokens to train autonomous digital twins and deploy collective intelligence.
- The Fetch.ai technology stack has four key elements that enable seamless connectivity and collaboration between digital twins.
- The Digital Twin Framework provides modular components for building marketplaces, skills, and intelligence.
- The Open Economic Framework enables search and discovery functions for digital twins, while the Digital Twin Metropolis uses smart contracts on a WebAssembly virtual machine to record agreements between twins.
The Fetch.ai Blockchain combines cryptography and game theory for secure consensus and rapid chain-syncing, crucial for supporting digital twin applications. In addition, the platform also includes a learner component where each participant represents a unique private dataset and machine learning system.
This works in tandem with the global market, where collective learning takes place among participants’ models. To ensure secure coordination and governance, smart contracts are supported by the Fetch.ai Blockchain. Lastly, there is a decentralized data layer based on IPFS that allows learners to share machine learning weights with one another.
How Is the Fetch.ai Network Secured?
By using blockchain technology, the network is completely decentralized, and differential privacy prevents the use of users’ private data sets when updating the network. As well as providing secure and censorship-resistant consensus, Fetch.ai’s blockchain incorporates multi-party cryptography and game theory.
What are the benefits of taking out a FET loan?
With crypto loans, you can access funds without selling, increase liquidity, maximize capital utilization, and diversify your portfolio more effectively. Additionally, crypto loans typically have lower interest rates than traditional loans, so borrowers can get funds more easily. In addition, crypto collateral is stored securely in a cold storage wallet, providing additional peace of mind.
Here are some cases where you can use FET as a collateral and get profit:
- Take advantage of market fluctuations – with CoinRabbit USDt loans, the amount you owe stays the same regardless of changes in the collateral currency’s value. For instance, let’s say you borrowed 90% of the value of your 50,000 FET collateral when it was worth $0.52 (approximately $26,000). You received 90% of this amount as a loan, equaling $23,400. When it’s time to repay and retrieve your FET collateral, you must pay back the initial loan amount – even if FET has risen to $1.65 or more. This means that at repayment time, you’d effectively receive a total of $82,500 instead of the original $26,000! In summary, crypto loans offer users the opportunity to leverage their assets and potentially make a profit simultaneously – making them highly beneficial.
- Make a large purchase and continue holding – With a crypto loan, you can enjoy the value of the invested fiat money while inflation permanently devalues it. Today, the same amount is worth more than tomorrow. The crypto loan against FET allows you to keep all your FET assets, but you gain extra funds today to spend, since your wishes will be more expensive tomorrow. 😉
- Tax optimization – There is no direct profit in a loan transaction, so you can take a loan and maximize your tax efficiency without worrying about taxes. Some countries require you to pay up to 40% on crypto investment profits.
- Technique for managing risks – By holding FET tokens, crypto investors have the option of leveraging their investments as collateral for a FET loan, rather than holding them and risking the unpredictable fluctuations of the crypto markets. They can access funds while their assets remain secure, allowing them to manage their risks. By doing so, they can take advantage of the lower interest rates of crypto loans while protecting themselves from losses as a result of market volatility.
Is there a way to work with FET volatility to avoid liquidation?
If you don’t short crypto and would like to avoid liquidation – you just should monitor the status of your loan. CoinRabbit offers an instant alert system that uses SMS and e-mail to notify you when there is a potential liquidation.
You can always add more collateral to adjust the Liquidation price of your loan. Loan collateral at CoinRabbit isn’t frozen; therefore, liquidation prices are adjusted immediately by adding more collateral or repaying your loan.
Aside from that, you can decrease the LTV at any time while the loan is open by adding more collateral. For example, CoinRabbit’s minimum loan LTV is 50%. CoinRabbit allows you to increase collateral immediately after opening a loan, so the LTV will decrease at a rate that suits you.
How to get a Fetch.ai loan in 4 steps
The application process for a FET crypto loan has been significantly simplified thanks to crypto loan platforms like CoinRabbit.
- Choose FET crypto as your preferred collateral on the homepage, under the Loan calculator section.
- By entering the amount of Fetch.ai crypto you want to deposit as collateral, the Calculator will show you the Loan Amounts you will receive, and click “Get Loan.”
- We will ask you to confirm the details, enter your stablecoin address (or chose our crypto wallet – CoinRabbit), and verify your email address after clicking “Get Loan”
- Next, send FET to the displayed address. After we receive your collateral, the loan will be sent to you immediately.
Conclusion
With Fetch.ai crypto loans with CoinRabbit, you can use crypto loans to minimize your taxes, make a large purchase, reinvest in new cryptocurrencies, and many more while continuing to hold your digital assets.
You should always keep in mind that all crypto operations are highly risky. When you get a loan from any crypto lending platform, be sure to check the status of your loan periodically and to add collateral if necessary.
And for those who wants to be prepared for the next bull run we recommend our new article about bitcoin halving 2024 💪
