Unbound Finance

About Unbound Finance

{"time":1704988866000,"blocks":[{"data":{"level":6,"text":"Highlights"},"type":"header"},{"data":{"items":["Unbound Finance is a decentralized, non-custodial platform that is building a derivative layer on top of existing AMMs to increase the overall capital efficiency in the DeFi space.","Liquidity providers can compound their earnings by leveraging their LP tokens to mint $UND, a decentralized, cross-chain stablecoin, soft-pegged to the US dollar.","Unbound Finance has raised $8 million from top-tier VCs such as Pantera, Hashed, CMS, Arrington XRP, Zee Prime and many others."],"style":"unordered"},"type":"list"},{"data":{"level":6,"text":"Product"},"type":"header"},{"data":{"level":1,"text":"Interest-free crypto loans without liquidation risk"},"type":"header"},{"type":"paragraph","data":{"text":"Unbound Finance is a decentralized lending platform that issues interest-free crypto loans to its users against liquidity provisioning tokens (LPTs) as collateral. The loans are given out in the form of synthetic assets, including $uETH and Unbound's native stablecoin $UND. Unbound loans are perpetual, meaning there is no deadline on loan repayment and users are free from the risk of collateral liquidation."}},{"type":"paragraph","data":{"text":"Users can further grow their existing DeFi profits by using the borrowed funds to trade on DEXs, provide liquidity to $UND pools or participate in staking and yield farming activities to earn additional rewards. Unbound Finance is built as an aggregator layer over the existing AMMs in the DeFi ecosystem and intends to unlock the liquidity trapped in various DEXs across multiple, balkanized blockchains."}},{"type":"image","data":{"caption":null,"stretched":false,"url":"https://assets.polkastarter.com/eu33unc9usz5h4nlrshs548scgte","withBackground":false,"withBorder":false,"file":{"url":"https://assets.polkastarter.com/eu33unc9usz5h4nlrshs548scgte"}}},{"data":{"level":6,"text":"Problem"},"type":"header"},{"data":{"level":1,"text":"Large amounts of idle liquidity in DeFi"},"type":"header"},{"type":"paragraph","data":{"text":"Billions of dollars of liquidity are lying idle across decentralized exchanges. Unbound Finance is targeting to make this “illiquid” liquidity more usable. For example in Uniswap, more than $1B liquidity is lying idle in stablecoin pairs only. Through Unbound, this liquidity can be made movable and the liquidity can be taken to various DEXs across different chains. When LPTs of Uniswap are deposited at Unbound as collateral, the minted $UND can then be cross-bridged on BSC to trade various assets on the DEXs of Binance Smart Chain."}},{"data":{"level":6,"text":"Solution"},"type":"header"},{"data":{"level":1,"text":"Unlocking trapped liquidity through interest-free loans"},"type":"header"},{"type":"paragraph","data":{"text":"Built as an aggregator layer over the existing AMMs, Unbound aims to unlock the liquidity trapped in DeFi DEXs and to enable the flow of this liquidity from one chain to another without physically removing it. Trapped liquidity is a problem that affects the capital efficiency in DeFi. Unbound solves this problem by using “trapped” crypto assets (like LPTs) as collateral, which otherwise would find no further use case. Unbound offers its users newer and better opportunities of yield by unlocking and enabling the flow of liquidity across multi-chain DEXs. Unbound's decentralized, cross-chain stablecoin $UND is pivotal in promoting interoperability and profitability across various balkanized blockchains.\r\nUnbound Finance is a liquidity-backed lending protocol that is targeted towards increasing the overall capital efficiency of the DeFi ecosystem. To solve this problem, Unbound enables users to leverage their otherwise idle crypto assets (LPTs) to borrow stablecoin loans and further use the borrowed funds to compound their yield by earning over and above their existing DeFi profits."}},{"type":"paragraph","data":{"text":"Next, Unbound aims to solve the problem of collateral liquidation seen with most DeFi lending platforms by using LPTs that are a lot more stable than a single crypto asset used as collateral. Additionally, Unbound maintains a SAFU (Secure Asset Fund for Users), an emergency reserve for safeguarding user assets in case of black-swan events."}},{"type":"paragraph","data":{"text":"Finally, Unbound intends to open newer and better avenues of yield by creating the first-ever truly decentralized, cross-chain stablecoin $UND that will be instrumental in promoting inter-blockchain operability and profitability.\r\n"}},{"type":"image","data":{"caption":null,"stretched":false,"url":"https://assets.polkastarter.com/5zte6ts1dijrgvwm4b4fur5g33p2","withBackground":false,"withBorder":false,"file":{"url":"https://assets.polkastarter.com/5zte6ts1dijrgvwm4b4fur5g33p2"}}},{"data":{"level":6,"text":"Business Model"},"type":"header"},{"data":{"level":1,"text":"Sustainable revenue through stablecoin minting fees"},"type":"header"},{"type":"paragraph","data":{"text":"Unbound charges a 0.6% minting fee whenever someone locks up their liquidity pool tokens and mints the stablecoin $UND. 20% of this fee (12bps) goes to Unbound’s treasury. Unbound is targeting the $40 billion AMM market, which will be at a $300 billion valuation in the next three years. If it can capture 5% of this liquidity in 3 years, $15 billion from AMMs across multiple chains can be locked up in Unbound. At an average 50% loan-to-value, that would translate to $7.5 billion in $UND issued and generate fees totaling $45 million. Of this $45 million, $9 million would be parked with Unbound. This is considering a single transaction. Considering an average of 10 transactions by users (locking and unlocking) over three years, revenues would go up to $90 million."}},{"data":{"level":6,"text":"Market"},"type":"header"},{"data":{"level":1,"text":"A new player in the liquidity-backed collateralized loan market"},"type":"header"},{"type":"paragraph","data":{"text":"Unbound is an upcoming blockchain startup designed to increase the overall efficiency of the DeFi ecosystem by providing liquidity-backed collateralized loans to crypto users. As such, it is competing with a number of competitors including Maker DAO, Compound, Synthetix and Nexo. The below table compares Unbound with its competitors:\r\n"}},{"type":"image","data":{"caption":null,"stretched":false,"url":"https://assets.polkastarter.com/3cbmc57p437690p63czbqzs7evs7","withBackground":false,"withBorder":false,"file":{"url":"https://assets.polkastarter.com/3cbmc57p437690p63czbqzs7evs7"}}},{"data":{"level":6,"text":"Investors"},"type":"header"},{"data":{"level":1,"text":"$8M raised from top VCs and angel investors"},"type":"header"},{"type":"paragraph","data":{"text":"Unbound has raised $8 million in the pre-public rounds from notable investors. It has received investments from founders of Angelist, Enjin, Gnosis, Kyber, Swissborg, Daomaker, Polkastarter, Fantom, Harmony, WikiHow, Zilliqa, Tomochain, Polygon, Coin 98 Analytics, Matrix Partners, Frontier, Curve, Synaps and many others. VCs such as Pantera Capital, Arrington XRP Capital, Fintech, Hashed, CMS, Ark Stream, LD Capital, Zee Prime, Ledger Prime, Kucoin, Gate, MEXC and many others have supported Unbound Finance as well.\r\n"}},{"type":"image","data":{"caption":null,"stretched":false,"url":"https://assets.polkastarter.com/u9v4ymki49simpk8j0ixrwjkfxsk","withBackground":false,"withBorder":false,"file":{"url":"https://assets.polkastarter.com/u9v4ymki49simpk8j0ixrwjkfxsk"}}},{"type":"paragraph","data":{"text":"\r\n"}},{"type":"image","data":{"caption":null,"stretched":false,"url":"https://assets.polkastarter.com/5nf5cjewhdr0nn3qwr8wwhdpvdnf","withBackground":false,"withBorder":false,"file":{"url":"https://assets.polkastarter.com/5nf5cjewhdr0nn3qwr8wwhdpvdnf"}}},{"data":{"level":6,"text":"Team"},"type":"header"},{"data":{"level":1,"text":"World-class team with exceptional executives"},"type":"header"},{"type":"paragraph","data":{"text":"\u003cb\u003eFounder \u0026 CEO - Tarun Jaswani:\u003c/b\u003e Tarun is a developer, technologist and entrepreneur. He has experience of 21 years in Digital Ad Networks, VR and Blockchain. He started building Unbound Finance in March 2020 when only 200 million were locked in 3-4 AMMs in the space. Once he understood the importance of AMMs and the new iteration in value discovery, it was all about building a derivative layer that could make the space capital efficient. Unbound was one of the few projects that had proof-of-concept before the whitepaper or the domain name was registered and each investor was brought on after the working product demo."}},{"type":"paragraph","data":{"text":"\u003cb\u003eCMO - Pratik Oswal:\u003c/b\u003e Pratik Oswal is the founder of IQube. He is ranked amongst the top 4% of the highest IQ in the world by Mensa. He has authored 7 books on Mathematics, which are currently being used by over 100,000 students in over 300 schools across India setting the first syllabus in India on IQ. He is an Engineering gold medallist in the field of Electronics and telecommunications and is currently pursuing a Master’s in Economics. He has been actively studying blockchain since 2016 and has worked closely with several projects in the space. He has a passion for fundamental and technical analysis and was heading the technical analysis section of AltcoinBuzz, a leading crypto-centric media house. He has written over 220 articles for Altcoin Buzz on fundamental and technical Analysis of over 100 projects and is popularly known in the crypto world as cryptomathemagician."}},{"data":{"level":6,"text":"Token Utility"},"type":"header"},{"data":{"level":1,"text":"$UNB: Unbounded Finance’s native governance token"},"type":"header"},{"type":"paragraph","data":{"text":"In the Unbounded Finance ecosystem, two tokens are at its core: $UND and $UNB. $UND is an ERC-20 stablecoin soft-pegged to the US dollar, whereas $UNB is the protocol’s governance token. Holders of $UNB will be active members of the DAO and will be able to vote on all protocol changes, whitelist pools for $UND minting and set the loan-to-value parameters. $UNB will be live on multiple chains like Ethereum, Polygon, Binance Smart Chain and Harmony and later on Solana, KCC, HECO, OKEx chain and Klaytn. It will also be listed on multiple DEXs like Uniswap, Balancer, PancakeSwap, Quickswap, Balancer, Curve, DFYN, DMM and more."}}],"version":"2.27.2"}