Unilend Finance is a permission-less decentralized finance protocol. It combines spot trading and lending/borrowing options. In doing so, Unilend Finance infuses a lot of liquidity into the market.
Decentralized Finance has given people hope towards a more just financial system. It aims to build a permissionless, decentralized and just financial ecosystem. Unilend Finance is an important piece of the puzzle to reach that goal. The services offered by Unilend Finance creates a permissionless decentralized exchange. This DEX is an important source of borrowing, lending and trading.
What is Unilend Finance?
Unilend Finance is a permission-less decentralized finance protocol. It enables spot trading as well as lending and borrowing functions. It also does not restrict any ERC-20 token to be supported on the platform. Therefore, users can create a spot pair for any token and a separate money market pair. In doing so, Unilend Finance uses smart contracts to offer access to money markets. On the network, interest rates and collateral ratios are based according to demand, supply and community governance. Using this network DeFi users can create their own risk management strategies for lending, borrowing and spot trading. Therefore, it creates a fusion of trading and DeFi capabilities on the same platform.
How does Unilend Finance work?
The Unilend Finance protocol is built on top of Ethereum blockchain. However, it works on the general Proof-of-Work consensus. The protocol offers multiple features to its users to create an immersive experience. The features collectively make it possible to create a one-stop DeFi platform. Here are the features:
DeFi Lending & Borrowing:
The decentralized exchange on Unilend Finance uses a permissionless listing mechanism. This mechanism allows users to lend, borrow and collateralize the tokens they own. Therefore, creating a perfect marketplace for DeFi borrowing and lending.
DeFi Flash Loans:
In a similar fashion, Unilend Finance offers permissionless listings for flash loans. This is also the first flash loan listing mechanism in place. Additionally, the network’s chain agnostic nature could help in pioneering flash loans protocol on many other networks.
DeFi DEX & AMM:
AMM stands for Automated Market Maker. AMMs eliminate the need for a centralized authority that does market-making activities. Therefore Unilend uses DEX and AMM along with it. In doing so, Unilend allows its users to list any token without seeking clearances from higher authorities.Thus making Unilend permissionless. This also creates liquidity in the market for any trading pair.
Multi-Chain DeFi Operability:
Unilend offers multi-chain operability. Traditionally most of the Decentralized finance projects are present exclusively on one blockchain, Ethereum. Unilend can break this “network locked” nature of DeFi protocols. This is because Unilend can provide its DeFi services on multiple networks such as Ethereum, Matic and many more.
The Unilend Token, UFT
The Unilend ($UFT) Token is the governance and incentive token of the platform. Token holders are allowed to vote on crucial matters. Functionality, collateralization ratio and addition of new pairs are some of the crucial matters. Additionally, one important aspect of a decentralized exchange is the need for liquidity. Unilend also has liquidity miners that ensures the sustainability of the platform by providing liquidity. Liquidity providers get rewards, governing rights and a percentage of trading and borrowing fees.
Moreover, user participation is important to maximize decentralization. In doing so, distributing the governing power to participants is crucial. Therefore, Unilend offers rewards in terms of UFT tokens to participants in the ecosystem. To be eligible to be a participant a user needs to take part in borrowing, lending and trading service offered by the platform. This allows for distributed governance of the platform.