Unilend Finance: A DeFi Powerhouse
Updated: Mar 15, 2021
The information below is to be used for informational and educational purposes. This is not financial advice.
Today I'm excited to talk about my favorite project at the moment. It's a project I've been following for months and I wanted to write about it ahead of what I expect will be an absolutely explosive month.
Unilend Finance is an upcoming Ethereum based DeFi protocol that will enable lending and borrowing of all ERC-20 assets, synthetic stocks, synthetic cryptocurrencies, and financial derivatives in one user-friendly platform.
Currently, Unilend is pre-product, but a live Beta will be released in the next couple of weeks and Mainnet will launch before the end of Q1.
New features such as flash loans, liquidity mining incentives, and more are very likely going to be announced in March as well.
With a marketcap of approximately $50 million at the time of writing, Unilend is extremely undervalued compared to other projects that are similar in scope and technology. Under the right conditions, I think the Unilend token (UFT) could hit $10 ($250 million marketcap) in the next couple of weeks.
What Is it?
Unilend is a permission-less decentralized protocol that promises to do for lending and borrowing what Uniswap did for spot trading. For the first time ever you will be able to lend and borrow any ERC-20 token. In addition, a corresponding trading pair will operate on the platform to allow spot trading functionality that's similar to other DEXs. It's Uniswap and AAVE rolled into one DeFi powerhouse.
Unilend will allow you to provide liquidity for asset trading and loans on the platform and you will receive fees in proportion to your liquidity pool stake. The revolutionary narrative here is that millions of people will be able to earn fees from tokens in their wallets collecting dust that they were planning to hold anyway. I predict that the Total Value Locked (TVL) of Unilend will eventually be among the highest in the cryptocurrency industry.
Additional Features and Partnerships
In addition to enabling lending and borrowing for all ERC-20 assets and spot trading, Unilend will be offering equally exciting products in the near future. In this section I will describe three partnerships that will surely make Unilend one of the most advanced and robust DeFi protocols in the world. This is just the tip of the iceberg however, there are many more!
Mirror Protocol enables the creation of synthetic assets called "mAssets" which are cryptographically powered by smart contracts to mimic price behavior of real-world assets, like stocks.
Through their collaboration, Unilend aims to become the world's first decentralized platform for lending and borrowing synthetic assets. These mAssets will serve as collateral for borrowing and can be deposited by liquidity providers on Unilend's platform to generate yield.
Soon, you'll be able to lend and borrow Google, Amazon, and Tesla stock on the Unilend platform! This integration will be the first case of synthetic equities used for collateral in a DeFi money market protocol.
mAssets are significantly less volatile than crypto assets, especially illiquid altcoins, and as a result the over collateralization (OC) ratio for borrowers can be lowered compared to hyper-volatile altcoins. Major tech equity mAssets like mAAPL and mGOOGL are less volatile, are supported by real-world cash flows, and are significantly more liquid than altcoins, meaning OC ratios don’t have to be as high to defend against liquidation.
Fantom Finance is a high performance, scalable, customizable, and secure smart-contract platform. In December, Fantom combined their blockchain technology with Band Protocol's oracle technology to create a full-featured, decentralized finance platform. The outcome of this partnership was the creation of synthetic assets that are built with accurate and real-time information. Through their own collaboration with Fantom, Unilend will allow trading, lending, and borrowing of these Fantom native assets. The Fantom Foundation has graciously agreed to provide liquidity to ensure a smooth launch.
Some of the assets that may come to the platform from Fantom are: FTM, fUSD, fGBP, fCNY, fEUR, fKRW, fJPY, fCHF, fBTC, fETH, fLINK, fBAND, fBNB, fGold, fSilver and fWTI.
Just imagine, soon you will be able to lend and borrow synthetic bitcoin on the Ethereum network or even commodities such as gold and silver!
You can read more about the Fantom partnership here.
Injective Protocol is a fully-decentralized sidechain relayer network which serves as a layer- 2 derivatives platform, trade execution coordinator (TEC), and decentralized orderbook. This decentralized derivatives DEX is one of the most ambitious projects in DeFi as the derivatives market is the largest financial market in the world by a significant margin.
Injective will allow users to create and trade derivatives, while Unilend's borrowing and lending functionality will amplify the use cases of these derivatives. In addition, this partnership will allow users to yield farm on Unilend using Injective's derivatives products.
You can read more about the Injective Protocol partnership here.
The team met their Q3 and Q4 2020 goals and they remain confident that they will meet their Q1 2021 goals. The alpha launch was a huge success when it was released in late December.
The community is expecting the beta to be released any day now. Members of the community have compiled the available code uploaded to GitHub and it looks GOOD. I don't want to spoil anything for the team, so I won't post screenshots here.
Below is a screenshot from the Alpha! The Beta is even cleaner, more user friendly, and packed with additional features.
If you're curious about how the Alpha works, you can watch this video
Chandresh Aharwar, CEO and Co-Founder
Chandresh Aharwar is the superstar and shining beacon of the Unilend team. He is the CEO and Co-Founder of Unilend and formerly head of Marketing and Strategy for Matic, now known as Polygon. The story of Unilend's amazing partnerships starts and ends with Chandresh. Chandresh is recognized in the cryptocurrency space as an industry leader with a reputation for constantly delivering. Over the years he has developed an extensive professional network that has led to Unilend's success in partnering with sucessful cryptocurrency projects around the world.
Consider that Changpeng Zhao of Binance fame (known as CZ) has 1 million followers and follows only 1500 people; Chandresh is one of them. If you're on CZ's radar, you are doing something right. Likely Chandresh's strong reputation in the industry is part of the reason that Unilend was recently listed on Binance, even before releasing a product.
The Inside Scoop
In this section I will tell you what's on the horizon for Unilend and why right now is such a good time to buy UFT tokens.
On February 9th Chandresh tweeted:
And just three days later, on February 12th, he hinted at a major product development in the telegram group.
This week (week of 2.22.21) the telegram moderator for Unilend had the following to say:
Two nights ago he dropped this on us
Reading between the lines of Chandresh's statements, flash loans could be coming to the Unilend platform! If flash loans make up 50% of AAVEs revenue, this could be one of Unilend's biggest and most valuable features.
Furthermore, it looks like staking and liquidity mining incentives will be announced soon. These incentives will not only directly reward UFT holders (perhaps fees from the flashloans or network usage will be shared amongst users staking UFT), but it could also lead to extreme FOMO as people rush to scoop up UFT tokens so they can earn rewards on day one. In crypto, these types of incentives can cause the price of a project to rocket beyond anyone's expectations.
It's also very exciting to hear that the Beta is going to be live for all to use, albeit perhaps not immediately after launch. I expect that the Beta will be launched within the first two weeks of March. After months of accumulating UFT, it's certainly a relief to hear that there will be a product soon that we can see and touch.
It looks like March is going to be the biggest month in UFT's five month lifespan! It's definitely exciting being a UFT token holder.
Now for everyone's favorite section, price predictions! Unilend currently has a marketcap of only $50 million and a price of around $2. This is a bargain! Unilend's competitors / similar products currently have the following market caps (in the midst of a market downturn, no less).
1. Uniswap - $7 billion
2. AAVE - $4.4 billion
3. Sushi - $1.9 billion (hit $275 million within days of launch)
4. Maker - $1.8 billion
5. Balancer - $382 million
6. Compound - $1.7 billion
7. Injective Protocol - $166 million (high of $230 million)
8. Mirror Protocol - $170 million (high of $275 million)
The links above will take you to Unilend's "DeFi-Dissected" series where they break down how Unilend compares to each of these protocols.
I know this picture is blurry, but I'm including it because it provides a high level overview of what makes Unilend so special.
And here is a high resolution image exclusively comparing Unilend and AAVE.
Unilend is extremely undervalued when considering its marketcap and side-by-side comparison with similar products. Most of Unilend's features are industry firsts (e.g., permission-less listing in a lending/borrowing platform, lending / borrowing + dex in one platform, lending borrowing synthetic stocks and synthetic cryptocurrencies, etc) and have the potential to go beyond what's possible in traditional finance by bridging the gaps that exist in DeFi.
If there's going to be news released every week in March and that news includes flash loans, liquidity incentives, token utility incentives (i.e., reasons to buy and hold UFT), Beta, and Mainnet then there is a strong possibility that the price of the UFT token may skyrocket from $2 to $10+ ($250 million marketcap).
Right now there is barely any news about product development that is easily available to the public and we have big news coming. Furthermore, the unexpected listing on Binance has dramatically lowered the barrier to entry for people to get UFT easily while simultaneously increasing liquidity.
If the team delivers on their promises, and I am very confident that they will, right now is the best time to buy UFT. The future looks very bright for the Unilend Finance team and anyone that has been accumulating UFT.
Big thanks to Brian Girvan for editing.