UniLend’s permissionless lending and borrowing protocol is reshaping the future of DeFi
UniLend Finance introduced UniLend v2 in their protocol update blog. Anyone may now lend and borrow any ERC-20 token, just as anyone can now trade any token on a decentralized exchange (DEX) without authorization, according to the update.
The Binance Innovation Zone initiative, which launched earlier this year and has already produced a volume of over $10 million, allows lending for all tokens as well as fast loans.
UniLend will be able to handle lending and borrowing of over 9000 assets, according to the developers, who wrote an inaugural blog describing several new features in their next edition. This August, the system went live with the permissionless listing of any token. As a result, it now supports over 25 cryptocurrencies for lending and non-collateralized borrowing via flash loans.
UniLend will be able to tap into the untapped $500 billion crypto market size without facing considerable competition thanks to this huge protocol improvement. First, let’s go through some of the UniLend v2’s important features:
- UniLend’s permissionless infrastructure will let users to create new pools with any mix of tokens, on-chain oracles, and custom pool settings such as liquidation thresholds, loan-to-value ratios, and interest rate curves via an easy user interface.
- UniLend v2 provides dual asset pools, which are analogous to the UniSwap liquidity concept. Dual asset pools keep tokens in one pool from being affected by price and liquidity movements in other pools.
- Tokenization of lending/borrowing positions into debt nonfungible tokens (NFTs) allows users to trade their lending/borrowing holdings on open marketplaces.
- On-chain price feed: To identify asset position, the protocol has constructed a proof mechanism to get the price feed from on-chain market data.
- Suryansh Kumar, the protocol’s chief technical officer and founder, claims that the protocol has used high gas optimization methodologies to make UniLend Finance’s fundamental lending and borrowing functions financially feasible.
- UniLend’s v1 lending and flash loans version has been audited by Certik, a major smart contract auditor.
The community considers UniLend Finance’s v2 to be the most decentralized money market protocol. UniLend’s v1 is already active on three popular blockchains: Ethereum, Binance Smart Chain, and Polygon, with v2 expected to be live on all of them soon.
About Unilend Finance
UniLend is a permissionless DeFi protocol that integrates spot trading with lending/borrowing functions on a single platform. UniLend allows anyone to publish any ERC20 asset for decentralized trading and lending/borrowing, whereas other DeFi protocols only accept about 30. UniLend’s objective is to expand the DeFi sector to include the $29 billion in ERC20 tokens that are now excluded, hence their slogan, “unlocking the true potential of decentralized finance.