Permission-less decentralized protocol UniLend has raised a respectable $3.1 million as part of its efforts to ‘welcome every token to DeFi’. For the uninitiated – through smart contracts, UniLend combines spot trading services and money market with lending and borrowing services.
What is UniLend?
Let’s begin with a primer on how DeFi works in today’s times.
The interest rates and collateralization ratio in the money markets are based on supply, demand, and other market forces. Borrowing limits are decided by liquidity in the trading pairs. Most existing DeFi platforms act as a gatekeeper in allowing projects to be a part of their pool, because of which a majority of assets are barred from participation in the DeFi ecosystem.
UniLend’s integrated smart contract functionality allows both trading & DeFi capabilities to co-exist within the same protocol. This solves the liquidity and liquidation issue which was limiting the growth of DeFi adoption to a broader market.
UniLend’s protocol allows its users to smoothly exchange the time value of Ethereum assets by creating a spot trading pair and separate money markets for each token. Thus the ecosystem owners can create their own lending and risk management strategies. As it is a permission-less platform, its users have the capability to list any Ethereum asset on UniLend. As soon as an asset is listed on the UniLend protocol’s smart contract, it is instantly created and listed on markets for lending, borrowing, and spot trading.
The funding rounds were led by Woodstock Fund with further support of other prominent VCs and industry players like Signal Ventures, 3Commas, Danish Chaudhry (Head of Bitcoin.com Exchange), Jay Putera (Partner at CryptoBriefing.com), TRG Capital, BTC12 Capital, AU21 Capital, Youbi Capital, TomoChain, Bidesk, Bibox, Tenzor Capital and Sandeep Nailwal (Co-founder, Matic Network).
These contributors shall form the backbone of a strong network of early UniLend supporters. They have largely been selected based on the value they are capable of bringing to the long-term success of UniLend. Contributions include assistance with listing a broad initial base of tokens on UniLend with initial liquidity, liquidity bootstrapping for a smooth user experience from the early days of the platform, and global and regional marketing efforts to generate awareness of our platform and our mission worldwide.
Fragmentation and functionality are challenges limiting the growth of the DeFi sector. UniLend seeks to solve this by supporting and offering comprehensive functionality for a vast range of digital assets. Some of the key elements of UniLend Protocol are:
Any ERC20 token can be listed without a centralized entity/ DAO controlling the process. Unilend is exploring addition of cross-chain support in the future such as Binance Chain, Monero, etc..
Lending & borrowing
Users can unlock their token’s functionality for lending to receive an interest rate and borrowing by paying an interest rate.
A corresponding trading pair will be operating on UniLend to include decentralized spot trading functionality.
Users will be able to receive fees in proportion to the liquidity pool stake.
The token holders shall govern the protocol through proposals to ensure that adjustments to the protocol are made with a majority consensus.
Native Utility Token
On UniLend the native utility token will be UFT, UniLend Finance Token. The token shall have multiple aspects for governance, value.
UniLend has an intuitive and user friendly interface designed to provide seamless trading and lending/borrowing experience.
- UniLend will help in enabling lenders to choose the acceptable collateralization assets and allow them to implement their own lending strategy to maximize returns.
- It should create an inclusive DeFi ecosystem where platforms do not act as gatekeepers. It shall be able to tap into the complete token market as opposed to a limited array of tokens supported by existing platforms.
- Instead of using the highly inefficient and slow peer-to-peer lending and borrowing, UniLend utilizes dual asset pools for frictionless borrowing and lending of assets backed by liquidity available in their respective trading
Co-founded by Chandresh Aharwar, previously VP of Strategy and Marketing at Matic Network, and Suryansh Kumar and Tarun Malik, Co-founders of MetaTransact protocol, the UniLend team themselves bring a wealth of industry experience and expertise to the table.