UniLend is bridging that gap by combining the decentralization aspect of enabling any ERC-20 to be utilized as collateral for lending & borrowing whilst providing the flexibility for users to also trade their assets in-platform. Ultimately, UniLend aims to unlock the full potential of digital assets for their owners.
In the money markets, the interest rates and collateralization ratio are based on supply, demand, and other market forces, and borrowing limits are decided by liquidity in the trading pairs.
The integrated smart contract for both features of the protocol allows both trading & Defi capabilities to co-exist within the same protocol. This solves the liquidity and liquidation issue which has been limiting the growth of DeFi adoption to a broader market.
The beauty of permissionless protocols is that anybody with an Ethereum wallet can take part. UniLend takes this a step further by enabling anyone to list any Ethereum-based asset (ERC20 token) on the platform.
UniLend solves the problems of fragmentation and limited functionality by supporting and offering comprehensive functionality for a vast range of digital assets, including:
Permission-less listing: Any ERC-20 token is able to be listed without a centralized entity/ DAO controlling the process and we’re also exploring the addition of cross-chain support in the future such as Binance Smart Chain, Monero, etc..
Lending & borrowing: Users have the capability to unlock their token’s functionality for lending to receive an interest rate and borrowing by paying an interest rate.
Trading: A corresponding trading pair will operate on UniLend to include decentralized spot trading functionality.
Liquidity: By providing liquidity, users are able to receive fees in proportion to their liquidity pool stake.
Governance: The protocol is governed by its token holders through proposals in order to ensure adjustments to the protocol are made with a majority consensus.
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