DeFi
Decentralized finance (DeFi) platform Unbound Finance will launch its model 2 on the Arbitrum One mainnet on April 11, providing liquidity suppliers (LPs) an opportunity to entry increased returns through the use of their LP tokens as collateral for loans on Uniswap, builders informed CoinDesk immediately.
This makes Unbound V2 among the many first protocols to supply collateralization of Uniswap V3 positions, making it simpler for LPs to earn extra from their capital. As of Monday, billions of {dollars} are provided as liquidity to Uniswap from DeFi customers, in accordance the on-chain information.
With Unbound, Uniswap V3 LPs can borrow Unbound’s stablecoin, UND, interest-free, secured in opposition to their concentrated liquidity positions. This characteristic permits customers to repeatedly earn rewards from Uniswap whereas having the ability to take out loans – which can be utilized for different DeFi functions.
Unbound model 2 has been operating efficiently on the Ethereum Goerli community testnet since October 2022.
Along with Uniswap V3 positions, Unbound can also be increasing collateral help to LP tokens of comparatively unstable asset swimming pools, similar to WETH-DAI. The model 2, nonetheless, will introduce worth stability mechanisms (PSMs) that routinely liquidate or redeem loaned positions to make sure UND’s worth stays steady and carefully aligned with its supposed $1 peg.
