Fractal is building web3 infrastructure allowing all on-chain financial assets to interact with and collateralize against each other via a universal margin account. The protocol operates tokenized lending pools (starting with USDF) from which assets are lent to borrower subaccounts. The lending yield is then passed to lender by way of USDF price appreciation (akin to cbETH).
The Fractal community of lenders benefits from a liquid secondary market for USDF, this creates a liquidity buffer, which avoids requiring borrowers to unwind positions when USDF gets redeemed. This reduces gas fees for the entire protocol. USDF is also designed to become a composable stable asset to be built upon by other ecosystem participants.