Unbound launches derivative layer on Binance Smart Chain and PancakeSwap
Unbound Finance, creator of the first-ever decentralized, cross-chain stablecoin UND announces the launch of its testnet on the Binance Smart Chain (BSC), a blockchain network built for running smart contract based applications.
Unbound finance, a decentralized protocol, is directed towards building a derivative layer of Automated Market Maker(AMM), that provides debt and liquidation free LPT backed collateralized loans to liquidity providers (LP) on various AMMs across multiple EVM based public blockchains.
Unbound has been live on testnet since December 2020. It launched its Zeta testnet on Ethereum’s Kovan network in April 2021. More details on the Unbound roadmap can be found here. Unbound has been through a series of audits performed by some of the best industry auditors including Peter Kacherginsky, Securing and Lucash-dev. The protocol further plans to include a few more smart contract audits and bug bounty programs before finally opening up the mainnet platform for its users.
Up until now, Unbound supported Liquidity Provision tokens(LPTs) from popular Ethereum based AMMs such as Uniswap, Balancer, Bancor, Mooniswap, Curve finance and Kyber. However, BSC’s high speed and low transaction costs have opened new arenas for the growth of DeFi protocols. As such Unbound decided to take a step forward and tap the total addressable liquidity on AMMs across the Binance Smart Chain.
With Unbound’s expansion to Binance Smart chain(BSC), liquidity providers on Pancakeswap will now be able to lock their LPTs on the Unbound platform as collateral. In return, users will be able to mint UND stablecoin (decentralized, cross-chain stablecoin soft pegged to the US dollar) and other synthetic assets such as uETH. The LPTs can be unlocked by paying back the minted funds (including the minting fees) at any time without any restriction. No additional fees are charged to the users.
Users can leverage the minted UND to grow their yield by earning rewards through liquidity provisioning to the UND pools at the platform while simultaneously continue to accrue transaction fees on their collateralized LPTs. What makes Unbound different is that it does not create a debt position. Additionally, Unbound completely nixes the liquidation engine seen with more collateralized lending platforms. As a result, users do not need to concern themselves with the potential liquidation of their collateral. Instead, Unbound uses SAFU, an emergency insurance fund, to secure the collateralized assets of borrowers during the so-called ‘black swan’ events.
At present, PancakeSwap is the leading DEX on Binance Smart Chain(BSC). Its fast-paced growth can be gauged with its current TVL of around $6.3 billion. As such, Unbound’s integration with Pancakeswap will bring a plethora of opportunities for crypto users to increase their yield manifold.
Stay connected for more Unbound related updates and its Binance Smart Chain Mainnet Launch.
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