Unbound Launches on Avalanche Mainnet to Make Revenue Opportunities More Accessible to Avalanche Users
Today, with utmost pleasure we announce that Unbound is now live on the Avalanche mainnet!
The unwavering perseverance of the Unbound team and the support of our ardent community members, have successfully led us to deploy fully operational mainnets on three major chains in the space including Ethereum, Polygon, and BNB Smart Chain. And now our launch on Avalanche will introduce the community to its blazingly fast, low-cost, and eco-friendly ecosystem.
Unbound being a decentralized, cross-chain lending platform provides DeFi users with ingenious yield enhancement technology. Network users can now leverage the Unbound platform to obtain perpetual, liquidation-free crypto loans at zero interest rates. Loans will be issued in the form of UND stablecoin against LP tokens of select pools across various Avalanche-based Dexs.
To begin with, the Avalanche mainnet will support LP tokens of 4 liquidity pools as collateral. This includes USDC-USDC.e and USDC-WETH.e pools of Pangolin along with USDC-USDC.e and USDT-USDT.e pools of Trader Joe. The minting limit on UND has been currently affixed to a maximum of $1m. We plan to increase it as we progress towards adding support for more pools on an ongoing basis.
Depending upon the volatility of the underlying pool, the amount of loan that users can draw against each collateral pair shall remain variable. For Pangolin’s USDC-USDC.e pool and Trader Joe’s USDC-USDC.e and USDT-USDT.e pools, the LTV is set to 80%. USDC-WETH.e of Pangolin being a more volatile pair will enable users to borrow UND up to 30% of the collateral value. It is important to note that these values are not fixed and are subject to change.
The addresses used for the deployment of Unbound’s contracts on the Avalanche Chain are as follows:
UND Stablecoin Token Address
USDC-USDC.e Vault: 0x6A9d6a13F6E58251b027Cd727dCCb55d6E2e84A9
USDC-WETH.e Vault: 0xFc1047E237C015740AD8382B23b8e603a177d157
USDC-USDC.e Vault: 0xa5c8cBe7C19E6341aF9Df3C26de3cBd7723e11A0
USDT-USDT.e Vault: 0x4814f5Ca8C2dF756D032192a5c3fe1376D21A8ee
How to amplify existing DeFi yields with Unbound?
Unbound’s optimized lending platform offers DeFi users a plethora of cross-chain yield generation opportunities. By putting their idle LP tokens to use, the protocol enables LPs to earn over and above their existing DeFi returns. To fully utilize the platform and maximize your profits, follow the steps below:
1. Collateralize LP Tokens to borrow UND stablecoin
Liquidity providers can start by depositing the LP tokens of the aforementioned pools as collateral to mint UND stablecoin, an ERC-20 token pegged to the US dollar. While doing so, the users will continue to earn transaction fees on the underlying liquidity pool. The amount of UND minted will depend upon the loan-to-value ratio corresponding to each collateral type. While Unbound loans are completely interest-free, the protocol does charge an upfront one-time minting fee of 0.4%, deducted at the time of borrowing the loan.
2. Farm collateralized LP tokens through Unbound
Using the Farm feature, users can stake their already collateralized LP tokens back into the corresponding farming pool directly through the Unbound platform. For each user, per farming pool, a new yield wallet is deployed from the factory, allowing users to withdraw their accumulated rewards directly from the contract. Thus, despite collateralizing their LP tokens at Unbound, the users will continue to benefit from the LP mining incentives offered by the Dex.
3. Liquidity Provisioning to UND Pools
UND being a stablecoin has multiple use cases. The Earn feature of Unbound enables UND holders to further compound their yield through liquidity provisioning to the UND pools. At launch, UND holders will be able to add liquidity to the UND-USDC pool on Pangolin and earn a fraction of the trading fee for doing so. Support for the UND-USDC LP mining pool on Pangolin will soon follow allowing users to earn additional high-yield rewards.
4. Repaying the loan
Users will be able to withdraw their collateralized assets at any time without any restrictions by simply repaying the borrowed UND loan. The UND returned will be burned in the process, and the LP tokens will be transferred back to the user’s wallet.
- The LTV for LP tokens of Pangolin and TraderJoe’s stablecoin-stablecoin pools is currently set to 80%. Due to the volatility of ETH, the LTV of the USDC-WETH.e LP tokens is set to 30%.
- The minting fee is currently set at 0.4%. The LTV and minting fee are not fixed and may vary for different asset pairs and across chains.
- The interest rate on UND borrowing is 0%.
- For stablecoin-stablecoin asset pairs, the underlying collateral will never be liquidated.
Unbound Finance is an Ethereum-based cross-chain 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, QuickSwap, KyberSwap 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 asset UND
- SAFU reserves
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