Unbound — Enhancing Finnancial Strategies and Investments in DeFi

4 min readMay 25, 2023

In the fast-paced decentralized finance (DeFi) world, innovation is constantly reshaping the landscape. Unbound the decentralized lending protocol is consistently evolving to make the DeFi space more capital-efficient. By using liquidity provider tokens (LPTs) and Uniswap V3 positions as collateral, Unbound allows users to borrow stablecoins without having to sell their assets. This frees up capital that can be used to earn additional yield or to participate in other DeFi activities.

Unbound recently launched its V2 mainnet on the Arbitrum One network, offering a plethora of benefits for DeFi users. Let’s explore the advantages of using Unbound and how it can enhance your financial strategies and investments.

Uncompromised LP Benefits

As liquidity providers participate in decentralized exchanges (DEXes), they receive a proportional share of the liquidity provisioning fee and acquire liquidity pool tokens (LPTs). These LPTs can serve as collateral on Unbound, allowing users to borrow the stablecoin UND. Unbound V2 automates the process of staking the LPTs used as collateral into high-yield farming pools, resulting in earnings from the attractive APY offered by the pools. This ensures that users, as liquidity providers, can still benefit from LP mining even when utilizing their LPTs as collateral. Thus users potentially gain additional advantages by leveraging their LPTs on Unbound.

Scalability

DeFi is spearheading a paradigm shift with its groundbreaking dexes that claim heightened capital efficiency and unparalleled liquidity depth. When Uniswap unveiled its v3 iteration, it unleashed a torrent of excitement throughout the industry, captivating the collective imagination of participants. As a result, numerous protocols are now diligently upgrading their technologies to sustain their relevance and impact within the space.

Similarly, Unbound remains at the forefront of this continuous innovation, scaling alongside the new generation of decentralized exchanges (dexes). Unbound recognizes the importance of this paradigm shift and actively integrates these advancements into its platform. By leveraging the NFT positions of these new-age dexes, Unbound empowers users to unlock additional funds in the form of UND stablecoin, further enhancing capital efficiency and enabling greater financial leverage. This seamless assimilation of novel advancements solidifies Unbound’s position as a leader in the industry, captivating the collective imagination of participants and ensuring its sustained relevance and impact within the ecosystem.

Higher APY

Users participating in Unbound are not only able to earn substantial returns but also gain access to a diverse array of lucrative opportunities. By engaging in liquidity provisioning, they can secure attractive liquidity provisioning fees and liquidity mining fees, effectively maximizing their earning potential. Additionally, participants have the unique advantage of receiving stablecoin UND, ensuring a stable and reliable income stream. Moreover, through UND staking, users can enjoy the enticing prospect of warm high APR, further enhancing their profitability within the Defi ecosystem.

In conclusion, Unbound is a dynamic and innovative lending protocol that continually adapts to the evolving DeFi landscape. By allowing users to borrow stablecoins without selling their assets, Unbound promotes capital efficiency and offers a range of benefits. Overall, it presents a compelling opportunity for users to optimize their financial strategies and investments in the thriving realm of DeFi.

About Unbound Finance

Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better yield opportunities to improve the overall capital efficiency of the DeFi ecosystem. The platform lets Defi users lock in LP tokens to borrow Unbound’s native stablecoin, UND, at 0% interest rates.
In version 2, Unbound will enable users to collateralize concentrated liquidity positions of next-gen AMMs such as Uniswap V3 and LP tokens of volatile asset pools. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi Dexes 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 uses 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.

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