Unbound Finance Launches Mainnet on Polygon

5 min readMar 2, 2022

As we continue to execute our recently released Roadmap for 2022, we are immensely thrilled to announce the launch of our mainnet on Polygon, one of the fastest-growing scaling solutions for Ethereum blockchain.

The deployment is a step forward in exploiting the synergies between multiple EVM compatible chains, promoting inter-blockchain operability and profitability. By expanding the Unbound ecosystem beyond the Ethereum mainnet, we aim to expose our community to the benefits of Polygon’s enhanced scalability, improved speed and reduced cost and transaction complexities.

Built as an aggregator layer over the existing AMMs, Unbound is focused on propelling the DeFi ecosystem towards greater capital efficiency. Addressing the $4.79 billion AMM market on Polygon, the launch of the protocol’s mainnet will enable network users to optimize their idle DeFi assets, thereby augmenting returns on their existing crypto investments.

Liquidity providers across various Polygon-based DEXs can now leverage their liquidity pool tokens to borrow interest-free loans in the form of Unbound’s native stablecoin UND and other synthetic assets. The mainnet has been initially rolled to support LP tokens of the USDT/USDC pool of QuickSwap with a maximum lock of $2.5 million on $UND minting. We gradually plan to increase the liquidity, adding a greater number of pools supported by multiple other AMMs on the chain.

Deployment:

The Polygon addresses used for the deployment of Unbound’s contracts are as follows:

UND stablecoin Token Adress: 0x1eBA4B44C4F8cc2695347C6a78F0B7a002d26413

USDC-USDT Vaults:

QuickSwap: 0xf74ca13d1fdb9a751753817DCB0269526000ef4D

UND Pools:UND-USDC (QuickSwap): 0x55a08B3c363a2Cc61A07d54B52FEe201bd4eC0dC

Vault Factories:

QuickSwapVaultFactory: 0xE7C04392A3a426D532f83cA968Bcc0341E99583D

Supported Pairs:

At this stage, users can mint UND on the Polygon mainnet by staking stablecoin LP tokens of USDT/USDC pools from QuickSwap on the Unbound platform.

Note: Support for other DEXs and pools will be added gradually.

Collateralizing the USDT/USDC Pool tokens of QuickSwap at Unbound

QuickSwap is the first venue to access UND liquidity on Polygon. QuickSwap LP tokens of the USDT/USDC pool will be whitelisted on Unbound. Users can lock up these LP tokens as collateral on Unbound to borrow interest-free synthetic asset loans. Unbound loans will be initially given out in the form of UND stablecoin, an ERC-20 token, soft pegged to the US dollar. The minted UND tokens can be further used by the users for liquidity mining or trading on QuickSwap. While doing so, users can still continue to earn their passive income from liquidity provisioning to the DEX.

Liquidity Provisioning to UND Pools at QuickSwap

LPs can earn additional rewards by providing liquidity to the UND/USDC pool on QuickSwap, thus increasing their APY. As we move ahead, LPTs of many other DEXs will be whitelisted to be locked on Unbound. So also multiple UND pools will be launched on a number of partner DEXs across Ethereum, Binance Smart Chain, Polygon, Harmony, Avalanche, Fantom, Kucoin Community Chain, Solana, TomoChain and HECO.

Farming Collateralized LP tokens of USDT/USDC Pool Back on QuickSwap

Once a user locks up the LP tokens of QuickSwap’s USDT/USDC pool on the Unbound platform, the user will also be able to farm the collateralized tokens back in QuickSwap’s supporting farming pool. For each user, Unbound will deploy a new smart contract wallet from Factory (called a yield wallet). Since the LP tokens are deployed to the farming contract from a user-specific contract wallet, users will be able to claim accumulated rewards from the contract directly. Thus, despite collateralizing the LP tokens of the USDT/USDC pool at Unbound, the user continues to accrue farming rewards on QuickSwap.

Process:

Step 1:

Lock up USDC/USDT Liquidity pool tokens of QuickSwap on Unbound using the link. You continue to accrue the fee from liquidity provisioning on QuickSwap as your liquidity still stays on that DEX. Besides, if there is any yield farming contract for your LPT, our smart wallet will send your LPT to that yield farm through Liquidity Lock Contract and you continue to enjoy additional APY on your collateralized LPTs by farming on QuickSwap through the Unbound platform.

Step 2:

With these LPTs as collateral, you can mint our stable coin UND worth upto 80% value of your underlying collateral at zero interest rates. For example, if you lock up $10,000 worth of LPTs ($5000USDC/$5000USDT), you can mint UND worth $8000 at Unbound. Our perpetual borrowing and no liquidation features enables you to repay the borrowed UND anytime without the risk of collateral liquidation. Unbound however, charges a small one-time minting fee of 0.4% which is deducted at the time of borrowing the loan.

Step 3:

The minted UND being a stablecoin can be put to multiple use-cases. Using the platform’s EARN feature you can use borrowed UND tokens to provide liquidity to the UND/USDC pool at QuickSwap. The fee generated as a result of trades taking place in this pool will further add to your Defi profits.

UND/USDC Pool Link: https://quickswap.exchange/#/add/0x1eBA4B44C4F8cc2695347C6a78F0B7a002d26413/0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174

Step 4:

Lock these UND/USDC in the yield farms of QuickSwap to get a high APY.

Step 5:

To unlock your LPTs, you have to simply return back the UND that you borrowed. These UND will get burned and your LPTs will be transferred back to your wallet.

Notes:

1. The loan to value (LTV) for USDC/USDT pools for minting is set to 80%.

2. Minting fee is initially set to 0.4%. We will keep revising this minting fee and the split of the minting fee as we move ahead.

3. Interest on borrowing UND (Stablecoin) is 0% perpetually!!!

4. Your underlying collateral will never be liquidated!

About Unbound

Unbound Finance is an Ethereum based lending protocol that uses the liquidity of Automated Market Makers as collateral. Users are bound by highly secured, perpetual smart contracts and are free from the risk of their collateral being liquidated. Currently Unbound supports AMMs across various multi-chain platforms like Uniswap, Curve.fi, Bancor, Mooniswap etc.

Key features highlighting Unbound’s foundation include

Liquidation-free liquidity provision system

Creating a no debt position when assets are minted

Perpetual borrowing

Factory Smart Contracts

Decentralized, cross-chain stablecoin UND

Minting synthetic assets like uETH

SAFU reserves

Connect With Us

If you would like to be a part of our ambassador programs or help us in any way, reach out to us at partners@unbound.finance.

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