How to Deposit and Withdraw Collateral on the Unbound V2 Testnet
In this guide, we will demonstrate how to deposit more collateral and withdraw the excess collateral.
Users at Unbound can deposit more collateral and withdraw excess collateral to safeguard their account from falling below the liquidation floor limit.
How to Deposit more Collateral?
Unbound v2 enables users to deposit more collateral to improve the collateralization ratio (CR) of their accounts. Follow the steps below to add more collateral.
- Click on ‘Deposit’ to add more collateral.
2. Enter the amount of collateral you want to lock or use ‘Max’ to collateralize all your LP holding and click on ‘Continue’.
3. Next, click on ‘Add Collateral’.
4. ‘Confirm’ the transaction in your wallet.
5. The interface will now reflect the total of the additional collateral added to your existing collateral.
How to Withdraw Excess Collateral?
Users can withdraw their excess collateral to reduce their collateralization ratio (CR). The steps are as follows:
1. Click on ‘Withdraw’ to remove the surplus collateral.
2. Enter the amount of collateral you want to remove and then click on ‘Continue’.
3. Click on ‘Withdraw LP’ to withdraw your collateral.
4. Next, ‘Confirm’ the transaction in your wallet.
5. You have now successfully withdrawn your excess collateral. The collateral now thus has been reduced by the amount of LP tokens you withdrew.
The guides on ‘How to Create a Smart Account’, ‘Borrow and Repay UND’ and ‘Liquidate Account(s)’ and ‘Redeem UND’ can be found in the links below:
How to Create a Smart Account, Borrow and Repay UND: https://unboundfinance.medium.com/how-to-create-a-smart-account-borrow-and-repay-und-on-the-unbound-v2-testnet-514287c91371?postPublishedType=initial
How to Liquidate Account(s) and Redeem UND: https://unboundfinance.medium.com/how-to-liquidate-account-s-and-redeem-und-on-the-unbound-v2-testnet-6b428b4c793f
About Unbound Finance
Unbound Finance is a novel, non-custodial lending platform, driven towards enabling newer and better opportunities of yield with a view to improving the overall capital efficiency of the DeFi ecosystem. The platform enables DeFi users to borrow over-collateralized synthetic asset loans in the form of UND stablecoin by collateralizing liquidity pool tokens (LP tokens) and concentrated liquidity positions of next-gen AMMs such as Uniswap v3.
Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi DEXs and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
- Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.
- Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.
- Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.
- Factory Smart Contracts: Unbound makes use of liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap and the like.
- Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.