UniLend is a permission-less DeFi protocol combining spot trading services and enables lend/borrowing functionality with the same platform. Other DeFi protocols only support thirty assets, while anyone on UniLend can list ERC20 assets for decentralized trading and lending/borrowing.
The mission of UniLend is to open up the DeFi space up to $29B of ERC20 tokens. These are currently excluded from Defi, so their motto is to unlock the true potential of decentralized finance. The existing DeFi platform blocks the majority of assets from participating in the DeFi ecosystem and acts as a gatekeeper to allow which project is to be their part of the pool.
UniLend is a permission-less DeFi protocol that combines spot trading services and lending/borrowing functionality within the same platform. Whereas other DeFi protocols support only ~30 assets, anyone can list any ERC20 asset on UniLend for decentralized trading and lending/borrowing. Thus, UniLend combines spot trading services and money markets with lending and borrowing services. Many DeFi protocols combine multiple financial services by using smart contracts with the rise of decentralized finance.
The liquidity decides borrowing limits in the trading pairs and the interest rates. Collateralization ratios are based on demand, supply, and other market forces in the money market. These features of protocol allow the trading and DeFi capabilities to co-exist within the same protocol. It solves the liquidity and liquidation issue, limiting the growth of DeFi adoption to a much broader market.
Users can frictionlessly exchange the time value of Ethereum assets on UniLend’sprotocol. It is done so by creating spot trading and separate markets for each token. And allows the ecosystem owners to develop their lending and risk management strategies. Users have the capability that they can list any asset of Ethereum on UniLend and, it is due to the permissionless nature of the protocol.
Features of UniLend
UniLend provides several features; some of them are as below:-
- It allows permissionless listing and, without any entity, any ERC20 token can be listed while controlling the listing process. Thus, UniLend’s feature becomes accessible to every token.
- It allows lending and borrowing and provides users with the capability to unlock their token’s functionality. It is done to receive an interest rate by paying an interest rate for lending.
- On UniLend’s platform, a corresponding pair also operates. It includes a decentralized spot trading functionality for users on this platform.
- Token holders govern the protocol through the proposal. It is done so to ensure the adjustments to protocol with a majority consensus.\
- Users can receive fees in proportion to their liquidity pool stake. It is done by providing liquidity for asset trading and loans on this platform.
- UFT is the native utility token of UniLend, which is the UniLend Finance Token. This token will have multiple uses for governance, platform utility, and much more.
Difference of UniLend to other DeFi protocols
The majority of the digital assets are left outside the DeFi ecosystem due to existing DeFi solutions. There are around six thousand tokens which are listed on coinmarketcap. Other DeFi protocols support less than thirty assets, while some offer to lend and borrow with a limited set of tokens. Some offer the freedom to trade in ERC20 assets but they neglect the lending and borrowing aspect.
UniLend bridges the gap by combining the decentralization aspect of enabling any ERC20 to be utilized as collateral. It is done so for lending and borrowing while allowing users to trade their assets on the platform. UniLend aims to unlock the full potential of digital assets for its owners.
UniLend and its expansion to protocol
Ethereum may be the king but, the world of decentralized finance is buzzing. Ethereummay has turned to alternative blockchains to resolve the issue of high gas fees. It makes the Polygon attractive for new users. It is so because they not only offer next-to-zero gas fees and a seamless user experience. But, Polygon is uniquely situated as a layer two scaling solution for DeFi’s reigning monarch.
Polygon has experienced rapid growth with new users and platforms which migrate to the platform daily. UniLend will soon launch an iteration of UniLend’s protocol on Polygon and its existing platform on Ethereum. UniLend offers comprehensive DeFi functionality for the Polygon community. All ETH and ERC20 token holders will be able to use their assets for decentralized trading, lending, borrowing, flash loans, yield farming, and much more.
Purpose of UniLend’s Native token
UFT token usually facilitates governance of the UniLend protocol. UTF holders decide the number of factors related to the proper functioning of the protocol through liquidity mining as a percentage of trading and borrowing fees.
Platform users are rewarded with governance power as UTF tokens which use UniLend for lending, borrowing, or trading. It encourages not only the use of the platform’s services but also facilitates distributed governance.
Who can use the platform of UniLend?
UniLend works to solve fragmentation problems as some DeFi networks focus on spot trading. Others concentrate on borrowing and lending. It lengthens the listing process of the token that tries to bring the three aspects together and limit the number of coins on offer. UniLend incorporates lending, borrowing, trading and provides a fresh start. It allows the users to add cryptos individually.
Thus, it bridges the gap between currencies listed on DeFi systems. Coins for this purpose are available in more expansive digital currency space. Listed coins can then drive the activities in both DeFi and spot trading spaces. UniLend can be used by anyone who holds ERC20 coins through the permissionless token listing. This feature brings more coins to market and powers DeFi adoption.
Conclusion
UniLend is a natural addition to the DeFi ecosystem, and protocols bring more options to crypto holders. The market is primarily dominated by slightly above thirty tokens out of possible seven thousand cryptocurrencies. It effectively removes the barriers in DeFi such as settlement and liquidity and combines spot trading, money markets, lending, and borrowing functionalities in the same smart contract. UFT provides holders with governance rights and puts the decision-making process in the hands of the network's users.
