The UnUniFi protocol is an L1 blockchain that provides tools and features for users to create a CDP (secured deposit position) to fuse assets tied to legal currency, using NFT and cryptocurrencies as collateral through its NFT marketplace. And this is nothing short of an entry into the NFT x DeFi area, which is now actively developing.
The protocol offers the following advantages:
- the largest amount of money users can borrow
-the lowest interest rates
- the longest loan duration for NFT holders.
The team themselves declare their mission as: "Give all NFTs the opportunity to DeFi" The team themselves declare their mission as: "Give all NFTs the opportunity to DeFi"
The project is young, at an early stage. Japanese development team from Botany LLP (Yu Kimura, Takeru Shimojima, Kenji Yanagisawa). All principal developers are members of CauchyE, Inc.
First: NFTs are quite actively gaining popularity and widespread distribution both inside and outside of the crypto world. But, since large amounts of capital are locked up in illiquid NFTs, many people are looking for various ways to unlock and use this liquidity without selling their NFTs.
Secondly, these are the challenges faced by today's stablecoin projects. Even though many stablecoins are backed by legitimate assets, there are certain risks to using them. For example, USDT from Tether is secured by legal tender, but there is a risk that the issuing company could misuse the financial assets that serve as collateral. In addition, fiat-backed stablecoins are subject to regulation in various countries. Unsecured stablecoins, on the other hand, will only work if the demand for them increases over the long term. Therefore, those stablecoins that are backed by cryptocurrency are the most likely to scale.
Therefore, in an attempt to solve these issues collectively, UnUniFi will allow users to launch synthetic stable assets based on NFT collateral that will be traded on its NFT Marketplace and will have rates above a certain amount as collateral.
- 1.Loan of crypto assets with NFT as collateral The moment NFT holders create a deposit for an NFT as collateral, their NFT will be placed in the marketplace. In doing so, the seller can choose one of the following two methods of placement:
- when buyers are allowed to bid in any token
- when buyers need to bid with a specific token (ETH, BTC, etc.)
If the seller chooses the first one, they can borrow any recently released UnUniFi stablecoin, such as JPU or USU. One can borrow q × r% of the synthetic asset, where q is the average offer price up to the n-th place**, and r is the** pledge ratio (originally assumed to be 50%). If the seller chooses the second method, they can lend 100% of q as the average bid price up to the n-th place in these tokens.
NFTs are posted free of charge, but the seller must pay a small fee to continue to place NFTs while borrowing assets from bidders. If the seller cannot pay the fees, the posted NFTs will be liquidated. The renewal fee is not paid in GUUs (UnUniFi native tokens), but in tokens in which the bidding/borrowing is done, accordingly.
- 1.Bidding Anyone can participate in the bidding by depositing tokens, depending on the NFT holder's chosen method of placement. Buyers can bid on an NFT if they want to buy and can cancel their bid if they wish. The pre-auction price, bidding price, and cancellation price will be the price change information. During bidding, tokens will be locked, but participants can bid with locked tokens and receive a commission for extending the seller's placement of their NFTs. If a bidder wants to cancel their bid, some fee may be charged. Any bidder with the highest bid can buy NFTs.
- 2.Liquidation If the seller is unable to pay the fees for the delayed end of the listing, the NFT they have placed will be liquidated. If the seller does not want to lose the NFT, they can buy it back at a higher price than the current maximum auction price.
EXAMPLE for JPU mint: NFT seller: places NFT in "collateral vault" bidder: places any token for trading NFT seller: mines JPU, using the buyer's proposed funds as collateral. If he wants to extend the placement period, they must pay the fee in JPU. NFT seller: mines JPU, using the buyer's offered funds as collateral, and receives incremental income EXAMPLE of ETH borrowing: NFT seller: places NFT in "collateral vault" bidder: places ETH for trading NFT seller: lends ETH. If he wants to extend the placement period, they must pay the fee in ETH. NFT seller: receives direct profit
A little bit of project tokenomics. Distribution of GUU tokens.
and GUU token unlock chart
At the moment, the project has completed the first phase of testing and launched the beta version of the mainnet. The roadmap is not marked, but at the moment all Q2 tasks are completed by the team, which inspires a certain confidence. There are at least 2 more tests ahead of us, in which we will all be able to participate.