No matter the decentralized finance project, the user journey usually starts with locking value in a smart contract. As of this writing, the total value locked in DeFi on various blockchains like Ethereum, Polygon, BSC, and Polkadot exceeds $80 billion. This is a tenfold increase from mid-summer 2020, but the DeFi market potential still needs to be reached as most crypto assets are excluded from the DeFi ecosystem.
UniLend is overcoming these significant challenges for decentralized finance with its innovations. The UniLend Protocol is a permissionless decentralized money market protocol with lending and borrowing services through smart contracts. UniLend enables users to utilize their cryptocurrencies by supplying collateral to the network that may be borrowed by pledging over-collateralized cryptocurrencies.
UniLend introduced flash loans to our money markets. One unfortunate aspect of previous iterations of flash loans has always been that these existing protocols could only offer users flash loans in a limited array because their protocol only supported limited tokens. However, UniLend is truly permissionless. This means we can unlock flash loan functionality for every token on the market.
Flash loans enable uncollateralized loans, given that the borrowed amount and the fee are returned within the same transaction. If borrowed liquidity is not returned within one transaction block, the whole transaction is reversed to undo the actions initiated until that point. UniLend’s Flash Loans offer various use cases, including arbitrage, collateral swaps, interest rate swaps, and market-making.
Features of UniLend’s Flash Loans
- UniLend’s flash loans are cheaper than existing options. UniLend’s flash loan fee is set to 0.05% currently, which we plan to remove/update through our governance.
- 70% of the fees collected from Flash Loans are distributed to lenders of that asset as rewards.
- 30% of the fee goes to UniLend reserves.
- UniLend’s Flash Loans support innovative token technologies, such as synthetic tokens.
The UniLend Protocol uses a dual asset pool-based strategy of a permissionless nature. As a result, UniLend Finance users can supply any ERC20 asset (and similar standards across multiple blockchains) and earn variable-based interest rates depending on the market and pool interest model.
Permissionless listing of UniLend’s lending and borrowing is powered by the Dual Asset Pool model, where any user can create any ERC20/ERC20 pool to begin lending and borrowing for those assets. This isolated model ensures a higher level of security because the volatility of one asset doesn’t affect the entire protocol (unlike Aave, Compound, or other money markets, which have a cross-pool mechanism) and is limited to a single (or few) pool.
This dual asset pool model combined with the dynamic interest rate model also incentivizes users based on the pool to lend their assets. In addition, Unilend sets a proportional risk-reward ratio for lending an asset absent from a multi-asset pool currently shared among significant protocols.
Who are the founders of UniLend (UFT)?
Chandresh Aharwar is the CEO of UniLend Finance. He is a proud contributor to the Ethereum ecosystem and has immense expertise in token economics modeling, exchanges, media outreach, global community expansion, and business development.
What is UniLend (UFT) used for?
Supply and redeem assets
Users who supply their assets receive liquidity positions as the Non-Fungible token, which will be used to redeem the lent assets from the pool and represent their borrowed positions. The Non-Fungibility nature of these liquidity positions allows users to leverage the secondary markets.
Users who wish to borrow any supported digital assets from UniLend must pledge collateral to be locked in the protocol.
Users’ collateral earns interest while in the protocol; however, users cannot redeem or transfer assets when used as collateral. These assets must be overcollateralized, and the collateralization ratios are determined by the protocol, which can be controlled through the governance process.
How is UniLend (UFT) unique?
The current players in lending through DeFi have limited the assets on their protocol, but UniLend Finance, being a permissionless protocol, allows thousands of assets to start lending and borrowing pools for money markets. UniLend presents itself as a base layer where many innovations will occur in the DeFi industry.
UniLend creates a secure lending environment where the lender receives a compounded interest rate (APY) paid per block while the borrower pays interest on the cryptocurrency borrowed. The UniLend v2 core contracts are partly upgradeable, with some parameters controlled by governance.
UniLend has also covered and overcome the primary difficulty lenders face and overcome the depletion of lendable assets and the inability of lenders to redeem their assets. In addition, they use third-party and automated liquidation programs that act as cushioning to the entire system.
This allows UniLend Finance to build a system of checks and balances to incentivize market participants and ensure the liquidity in any given asset isn’t scarce, given current borrowing levels. UniLend is dedicated to bringing true decentralization to the DeFi ecosystem. Following the V2 mainnet launch, there will be multiple additional features to be worked upon, including but not limited to on-chain governance.
How many UniLend (UFT) coins are in circulation?
It has a circulating supply of 31,052,564 UFT coins and a maximum supply of 100,000,000 UFT coins.
How is the UniLend network secured?
Its securely-developed and impenetrable smart contracts secure UniLend.
How do I buy UniLend (UFT)?
The UFT token can be used for a wide range of purposes, like staking and governance.
UFT tokens can be easily purchased by following the following steps.
Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
Which Cryptocurrency Wallet Supports UniLend (UFT)?
The PTPWallet platform supports many cryptocurrencies, with UFT soon to be included. Because of its vast use case, PTPWallet has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. The platform offers a simple user interface, is supported by both Android and iOS devices, and comes with its own mobile wallet app.