UniLend (UFT) is a decentralized protocol providing spot trading and lending services based on smart contracts. It differs slightly from other existing DeFi platforms by providing more control. In particular, the distinguishing feature is the listing without permissions. This means that UniLend functions are available for each ERC-20 token, no one controls the listing process and cannot restrict the use of a particular asset.
UniLend’s native utility token is UFT, which is traded on the Binance exchange in pairs with ETH and BUSD. Serves several functions (management, profitable farming, staking, discounts on commission fees). In this review from the editors of Btcnewsweb.com, we will consider the functionality of the platform and its token.
Contents
General information
| Name | UniLend |
| Ticker | UFT |
| Token type | ERC-20 |
| Blockchain | Ethereum |
| Reviewer | https://etherscan.io/token/0x0202Be363B8a4820f3F4DE7FaF5224fF05943AB1 |
| Current issue as of 02.03.21 | 25 557 500 UFT |
| Total emission | 100 000 000 UFT |
| Course on 03/02/21 | $ 3 |
| Official site | https://unilend.finance/ |
| Blog | https://medium.com/@UniLend |
| https://twitter.com/UniLend_Finance | |
| Exchanges | Binance, Uniswap, Gate.io, Sushiswap, Balancer |
UniLend chart (UFT)
Binance UFT / BUST chart:
Features and operating functions of the protocol
UniLend allows you to trade, take out loans and earn on interest-bearing accounts using a wide range of digital assets. Users are given the opportunity to trade with an automated market maker on a decentralized platform, borrow assets at an interest rate, or lend their existing assets, while also earning interest. Management of the protocol is decentralized, it will be regulated by token holders by submitting proposals and voting for them.
Users can also earn on profitable farming, that is, receive commissions for providing liquidity to the pool with each exchange within this pool.
Interest rates in the money market, as well as the possible collateral ratio for borrowing, are determined by liquidity in trading pairs, supply and demand. An integrated UniLend smart contract for the two main functions of the protocol allows both merchant and DeFi capabilities to coexist successfully on the same project. This solves the liquidity problem that has been limiting DeFi’s integration into the wider market.
Existing DeFi solutions keep most digital assets out of the ecosystem. There are thousands of different tokens, however Compound, Aave, MakerDAO and many other modern platforms only support a few dozen for lending and borrowing. As for trading platforms, they usually support all ERC-20 tokens, but at the same time do not provide an opportunity to use the credit functionality. UniLend fixes this problem.
The main features of the UniLend project:
- Anyone with an Ethereum wallet can use the platform’s capabilities.
- Any user can enter any ERC-20 token into the protocol without restrictions.
- Listing an asset in a UniLend smart contract means that it instantly becomes available in the lending, borrowing and spot trading markets.
- All ERC-20 tokens are listed without the control of any centralized entity or DAO.
- UniLend helps address some of the fragmentation and limited functionality issues by supporting complex functionality across multiple digital assets.
- The possibility of cross-chain support in the future is being considered – Binance Chain tokens, Monero, etc.
- The intuitive user interface is designed to ensure smooth lending or trading operations.
The native UniLend utility token (UFT) will have several uses, mainly related to management, useful options, and more.
A key element for ensuring the sustainability of a decentralized financial protocol is liquidity providers. It is for this reason that liquidity providers will be rewarded for their services with management rights in the form of UFT tokens, as well as a percentage of trading and lending fees.
Purpose of UFT
The digital secure utility token of the UniLend project is a transferable expression of certain rights specified in the code of the UniLend platform. Tokens are intended to play an important role in the functioning of the platform and they can only be used as the main service token on the platform. The main essence of UFT is to decentralize the management of the UniLend site.
It is planned that UFT will be used as an exchange tool between users, providing a convenient and secure way of payments from one participant to another within the ecosystem. The developers add that ownership of UFT does not carry any rights other than the right to use UFT as a means of providing public administration of the platform. In addition, it provides economic incentives to encourage participants to contribute and support the ecosystem.
Since the tokens received for participation (for example, providing liquidity) can be spent on voting on protocol changes, a model is formed that implies the exchange of participation for management.
Where to buy or sell UFT
The token is supported by many decentralized platforms, as well as the Binance cryptocurrency exchange. To buy it through Binance, you will need to acquire ETH or BUSD in your account, depositing them from any external wallet or purchasing with other assets within the same exchange.
After that, you can make a purchase by creating a trade order (market order for a quick purchase or a limit order for buying on your terms).
Conclusion
The UniLend protocol has carved a new niche in the market that earlier DeFi projects did not see fit. Combining the functionality of decentralized lending, trading and adding absolutely any ERC-20 tokens gives positive results, as it maximizes trade and investment opportunities for users. The project, if developed, can become an important part of the DeFi ecosystem, creating a level playing field for all potential participants.
