Before starting to discuss on the topic, kindly note that this article is based on my own research. Before investing in any project make sure you do your own research thoroughly to avoid loosing money.
To start with, we all know existing DeFi solutions have proven the huge demand for decentralized trading, lending and borrowing but still they have left the majority of digital assets outside of the DeFi ecosystem. There are over 6000 tokens which are currently listed on CoinMarketCap but still the current DeFi platforms such as Compound, Aave, Maker DAO support less than 30 assets classes.
This clearly indicates a huge market opportunity for a protocol that supports a larger number of assets in a decentralized and permission less way. Unilend is designed to address this issue in the untapped market and fuel the blockchain ecosystem by opening up the DeFi Space for all the tokens.
Talking about numbers, the untapped market of Ethereum based assets in terms of combined market capitalization is larger than the market capitalization of the select few assets which are currently supported for DeFi. ($16.7B untapped market compared to $16.58B included in DeFi as of August 2nd, 2020).
UniLend is a permission-less decentralized protocol that combines spot trading services and money markets with lending and borrowing services through smart contracts. The interest rates and collateralization ration are based on demand, supply and community governance.
UniLend allows both trading and DeFi capabilities to co-exist within the same protocol. This solves the liquidity and liquidation issue which is currently limiting the growth of DeFi adoption to a broader market.
In order to pump the overall liquidity and user expansion of DeFi, UniLend extended asset support classes through permission less integrations.
The primary use-cases of UFT
As mentioned in our article of UniLend Finance Roadmap, the alpha release is about to happen in next few days and we all are waiting to see what it brings on the table.
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