Unbound
Unbound is a decentralized cross-chain liquidity protocol that is building the derivative layer of Automated Market Makers (AMM). Unbound Finance is building the next money lego through unlocking the TVL (Total Value Locked) within the DeFi system with a view to augment the utility of Liquidity Provider (LP) tokens, making it a more efficient yield generating tool.
How Does Unbound Work?
They work on the derivative layer of AMM . They collateralize LPT and mint synthetic assets. The amazing part about this is they do not create a debt position since they do not have a liquidation engine.
Features
Unbound is a decentralized cross-chain liquidity protocol that is building the derivative layer of Automated Market Makers (AMM). The intent of Unbound is to build products that are both native and composable to the DeFi ecosystem. These include
- Synthetic Assets including a Stablecoin(UND), uETH,etc
- AMM pools that are cross derived from multiple AMMs
- Oracle Price Feeds based on free markets and path independent value discovery.
- Building financial instruments for compounding yields and margin trades
UNB Token
- UNB is used for protocol governance. It encourages participation from the token holders by way of decision making to resolve issues. Token holders will be able to vote for policy on proposed changes and implementations to better serve the community and increase the efficiency of the protocol. More details on governance is covered in the upcoming sections.
- A perpetual inflation rate of 4% per year will start after 2 years, ensuring continued participation and contribution to Unbound at the expense of passive UNB holders.
UND Token
- The UND is a stablecoin that is pegged to USD and collateralized by LPT (Liquidity Pool Tokens). The value of UND minted is based on the value of the deposited LPT. The amount of UND minted at the time the LPT was deposited is the amount that the user must pay back in order to get their original LPT. Minted UND will be burned once deposited in the Unlock contract before the original collateral is returned to the user. Arbitrageurs in AMM pools ensure that the Dollar peg is maintained.
Governance
Unbound will implement a DAO in the coming days.
- The Unbound governance model enables UNB token holders to participate in policies and protocol decisions on the platform. The amount of UNB tokens that a user holds is proportional to their voting power on the platform.
- The voting power of a user gives them the right to participate in policy making, proposals, and to have a say in any future direction of the platform.
- The DAO (Decentralized Autonomous Organization) has Smart Contracts that form the backend of the platform.
- The DAO maintains the transaction records and rules that must be implemented on the blockchain for Unbound's protocols.
- Tokens allocated for the DAO are more for financing the platform since the Smart Contracts do not vote.
- The UNB tokens are stored by the DAO, and are released when new policies and improvement proposals from the community have been passed. These will be used to fund projects for the platform.