Unbound V2 launches on Goerli Testnet

5 min readOct 20, 2022

We are ecstatic to announce that Unbound v2 is now officially live on the Goerli testnet!

You can try the testnet here: https://v2-testnet.unbound.finance/

Keeping pace with the ever-changing DeFi landscape, we have updated and improved our protocol after months of research and development. With this release, users can get a first-hand experience of what Unbound v2 brings over its previous version.

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:

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

Note: Support for concentrated liquidity positions and other asset pairs to be used as collateral will be added gradually in the next phase of the testnet.

Below are the guide links that will assist you at each step of the testing process to simplify your experience.

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

How to Deposit and Withdraw Collateral: https://unboundfinance.medium.com/how-to-deposit-and-withdraw-collateral-on-the-unbound-v2-testnet-c845ddb80699?postPublishedType=initial

How to Liquidate Account(s) and Redeem UND: https://unboundfinance.medium.com/how-to-liquidate-account-s-and-redeem-und-on-the-unbound-v2-testnet-6b428b4c793f

Contract Addresses:
The following contract addresses can be used to add and view test tokens in your Metamask wallet:

Test UND : 0x04Cd0Db8db38356493Ca82eA6426AeB18cD876e7

Eth-Dai LP tokens : 0x8E2c6F1b0f9239CdA3DAd66D9604F0EFa4b8e471

SushiSwap LP mining reward token : 0xdc3618170cC3275c7f91193A4A5991020E4D8c00

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:

1. Claim test LP tokens from the faucet

2. Borrow and hold test UND

3. Complete the feedback form and report bugs or provide suggestions
Feedback form: https://t.co/CteALADV5w

Make sure to try your hands at the other functionalities such as deposit, withdraw, repay, liquidation and redemption to increase your chances of winning NFT rewards and surprise airdrops.

The testnet incentive program will start today, 20th October and continue until the launch of the v2 mainnet. Winners will be chosen at random by the Unbound team and whitelisted for the upcoming mainnet airdrop. Details on winner announcement and reward distribution dates will be revealed at a later date.

That’s it for now folks!

We will continue to keep you updated with fresh announcements and news. Meanwhile, don’t forget to share your feedback and stay tuned on our social media channels.

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.

Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi DEXs 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 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