Unbound Finance Will Soon Allow Stablecoin Borrowing Against Uniswap LP Positions on Arbitrum
BowTiedBull
President
BowTied Jungle
The pseudonymous investor BowtiedBull explores the BowtiedJungle, where citizens swap advice on investing, job-seeking, …
BowTiedBull
President
BowTied Jungle
The pseudonymous investor BowtiedBull explores the BowtiedJungle, where citizens swap advice on investing, job-seeking, …
:format(jpg)/s3.amazonaws.com/arc-authors/coindesk/6c6bb5af-692c-4fcf-9f8b-a75d0549effd.png)
Shaurya is the Co-Leader of the CoinDesk tokens and data team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.
BowTiedBull
President
BowTied Jungle
The pseudonymous investor BowtiedBull explores the BowtiedJungle, where citizens swap advice on investing, job-seeking, …
BowTiedBull
President
BowTied Jungle
The pseudonymous investor BowtiedBull explores the BowtiedJungle, where citizens swap advice on investing, job-seeking, …
Decentralized finance (DeFi) platform Unbound Finance will launch its version 2 on the Arbitrum One mainnet on April 11, offering liquidity providers (LPs) a chance to access higher returns by using their LP tokens as collateral for loans on Uniswap, developers told CoinDesk today.
This makes Unbound V2 among the first protocols to offer collateralization of Uniswap V3 positions, making it easier for LPs to earn more from their capital. As of Monday, billions of dollars are supplied as liquidity to Uniswap from DeFi users, according the on-chain data.
With Unbound, Uniswap V3 LPs can borrow Unbound’s stablecoin, UND, interest-free, secured against their concentrated liquidity positions. This feature allows users to continually earn rewards from Uniswap while being able to take out loans – which can be used for other DeFi applications.
Unbound version 2 has been running successfully on the Ethereum Goerli network testnet since October 2022.
In addition to Uniswap V3 positions, Unbound is also expanding collateral support to LP tokens of relatively volatile asset pools, such as WETH-DAI. The version 2, however, will introduce price stability mechanisms (PSMs) that automatically liquidate or redeem loaned positions to ensure UND’s value remains stable and closely aligned with its intended $1 peg.
DISCLOSURE
Please note that our
privacy policy,
terms of use,
cookies,
and
do not sell my personal information
has been updated
.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
strict set of editorial policies.
CoinDesk is an independent operating subsidiary of
Digital Currency Group,
which invests in
cryptocurrencies
and blockchain
startups.
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
stock appreciation rights,
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG
.
Shaurya is the Co-Leader of the CoinDesk tokens and data team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
Shaurya is the Co-Leader of the CoinDesk tokens and data team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.
