These are exciting times for the world of DeFi. There are innovations and infectious energy in every nook and corner, and our team at Unbound has not been immune.
We’re thrilled to announce that Unbound V2 is now officially live on the Arbitrum One mainnet, bringing new possibilities and opportunities to the DeFi space.
What is Unbound V2?
With Unbound V2, liquidity providers (LP) on automated-market-making (AMMs) protocols like Uniswap V3 and Sushiswap can deposit their liquidity pool tokens as collateral to obtain dollar-denominated loans in our stablecoin, UND. They can then use the UND liquidity to trade and make profits in all the exciting DeFi projects, or they can leverage their existing LP positions.
How is Unbound V2 different?
In our first version, Unbound V1 supported only stablecoin AMM tokens, which allowed us to provide interest-free, no-liquidation loans for perpetuity. With V2, it will now support liquidity tokens for volatile token pools like wETH/DAI as well. Obviously, this requires us to enable liquidations to ensure the necessary capital backing to support the $1 price of UND. We will also support liquidity on Uniswap V3 via liquidity aggregators like DefiEdge, among others.
Supported Collateral pools:
At the launch of Unbound V2 mainnet, the platform will accept the following pools as collateral on the Arbitrum One network:
- USDC-DAI on DefiEdge with a maximum UND borrowing limit of 1 million
- wETH-USDT on DefiEdge with a maximum UND borrowing limit of 500k
- USDC-DAI on Suhiswap with a maximum UND borrowing limit of 250k
- wETH-USDT on Sushiswap with a maximum UND borrowing limit of 250k
The minimum collateralization ratio (MCR) for each collateral type is initially set to 110%. It is important to note that the value of these parameters is not fixed and is subject to change in future.
If you do not see your favorite token pair here, do not fret. Moving ahead, we will add support for other Dexes and collateral pairs. You can also reach out to our incredible team members on Twitter and Telegram with the pool you want to see, and if our risk analysis team gives the green signal, we will add that pairing to our growing list of accepted collateral.
The Arbitrum addresses used for the deployment of Unbound V2’s contracts are as follows:
UND stablecoin Token Adress: 0xD4c556bB8D9ECef063C5d75c65D6E31E46990367
UND-USDC Uniswap V3 pool: 0xbdb78185c9fa32f0c97e2f04269a9ab497323c89
UND-USDC DefiEdge strategy: 0x7e8c9986f623fb469509c2cdcdd89ac5e833af5e
How to Maximize Your Defi Earnings with Unbound V2
As a liquidity provider (LP), you can use Unbound V2 to compound your existing Defi earnings using the steps below:
- Collateralize supported LP tokens or Uniswap V3 positions to borrow UND stablecoin.
- Claim yield farming rewards directly through the Unbound V2 platform on your collateralized LP tokens.
- Add liquidity to the UND/USDC strategy on DefiEdge with the borrowed UND to earn swap fees.
- Stake the DE shares received in step 3 into the UND-USDC LP mining farm on DefiEdge to earn additional rewards in $UNB, the native governance token of Unbound.
If you prefer, you can also swap the borrowed UND for any other cryptocurrencies to use in other DeFi applications.
For example, let’s say you’re currently earning ~6% APR in fees through the USDC-DAI strategy on DefiEdge. By depositing $100 worth of DE shares into Unbound V2 and collateralizing them at a ratio of 143%, you can borrow 70 UND. With this UND, you can add liquidity to the UND-USDC pool on DefiEdge and earn additional swap fees. Furthermore, you can stake the DE shares you receive from DefiEdge to earn rewards in UNB, Unbound’s native token. This compounding effect can increase your initial 6% returns to 10% or even 15%! Alternatively, if you prefer, you can also swap your UND for other assets and earn fees from Uniswap.
How safe are Unbound V2 contracts?
Our contracts have been rigorously vetted and scrutinized by some of the industry’s best auditors and security analysts, including Riley Holterhaus and Watchpug. We take the security of our platform very seriously and have implemented their recommendations to ensure the safety of our users’ funds.
To assist our users in maximizing their earnings in the DeFi space through the Unbound V2 platform, we have created a comprehensive guide that provides step-by-step instructions for using the platform. By following these instructions, you can make the most of Unbound V2 and enhance your current DeFi yield.
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.