Unbound V2 launches on Goerli Testnet

Unbound v2 — What’s new?

Collateral

Unbound v1, a decentralized crypto lending platform, provided users with 0% interest and no collateral liquidation risk while enabling users to borrow our native stablecoin UND against stable pair liquidity pool tokens. With our new version, users will have access to a broader range of collateral assets including LP tokens of volatile asset pairs and concentrated liquidity positions of the next-generation AMMs like Uniswap v3.

PSM

Next, by introducing improved price stability mechanisms such as liquidation and redemption, Unbound v2 aims to further boost UND’s stability. While liquidation would ensure that UND remains backed by overcollateralized assets at all times, redemption would keep the value of UND closest to its peg.

Core functionalities

In addition to the above features, Unbound v2 also comes with enhanced core functionality. The protocol now allows users to create separate smart accounts corresponding to each collateral asset type. Users can permissionlessly borrow UND while maintaining a CR greater than the MCR of the vault, deposit additional collateral to improve CR, withdraw excess collateral and repay the debt partially or completely anytime.
For a more detailed explanation of the platform, please read our recently published whitepaper here.

Testing the Unbound v2 platform:

The Unbound v2 testnet is in the initial phase and is currently rolled to enable testnet users to utilize the following features and functionalities of the platform on the Goerli test environment:

  1. Create Smart account
  2. Collateralize LP tokens of Eth-Dai asset pair
  3. Borrow UND based on the collateralization ratio (CR) of the Unbound vault
  4. Repay partial or complete UND debt along with the borrowing fee
  5. Deposit additional collateral
  6. Withdraw excess collateral
  7. Claim Sushiswap’s LP mining rewards accumulated as a result of auto-staking of underlying collateral assets
  8. Liquidate single or multiple accounts with CR below the minimum collateralization ratio (MCR) of the Unbound vault
  9. Redeem UND at face value and in return earn the collateral equivalent to the amount of UND redeemed.

Guides

How to Create a Smart Account, Borrow and Repay UND: https://unboundfinance.medium.com/how-to-create-a-smart-account-borrow-and-repay-und-on-the-unbound-v2-testnet-514287c91371?postPublishedType=initial

Incentives

With the release of the testnet today, we are one step closer to launching Unbound v2 on the mainnet, marking an important milestone on our way to creating a capital-efficient DeFi space. To celebrate the occasion and recognize the support of our community, 250 testnet participants will be incentivized with limited edition Unbound v2 NFTs. In order to qualify for the NFT airdrop, users will require to perform several tasks as follows:

About Unbound Finance

Unbound Finance is a novel, non-custodial lending platform, driven towards enabling newer and better opportunities of yield with a view to improving the overall capital efficiency of the DeFi ecosystem. The platform enables DeFi users to borrow over-collateralized synthetic asset loans in the form of UND stablecoin by collateralizing liquidity pool tokens (LP tokens) and concentrated liquidity positions of next-gen AMMs such as Uniswap v3.

  • 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 makes use of 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.

Stay Tuned

Website | Twitter | Unbound v2 Whitepaper | v2 Testnet | Telegram | Medium |Telegram Announcement Channel |

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