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Learn more about the Unifi Protocol

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Kimm
@kimmyhime
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5 min read

Hello, this is kimm. UniFi Protocol, a multi-chain DeFi platform, will also be launched on Ethereum on November 30, 2020 . As for me, the UniFi protocol is on several blockchains, issuing UP tokens on several blockchains, and there is a token called UNFI on Binance LaunchPool, which makes it a bit difficult for many users.

For example, I am confused in various concepts such as why the price of UP token of Tron and UP token of Binance Smart Chain is different, whether UNFI token and UP token are the same, and why the redemption value of UP token is different from the price traded in the market. Since there are a lot of people who do it, the Unify team is also posting the guide in as much detail as possible.

Today, we will introduce translated articles uploaded by the Unify team on the official medium blog regarding the launch of Ethereum. Reading the information below will help you get a rough idea of ​​the unify protocol.

Summary of the main content

  • Unifi's Liquidity Provider (LP) can retain more rewards because it doesn't have to run a lot of hard transactions.
  • Transaction fees are automatically distributed to UP token holders by increasing the redeem value of UP tokens. Therefore, no additional network fees are required.
  • After obtaining UP tokens, there is no need to stake separately, so no network fee is required.
  • Unifi aims to change the Ethereum DeFi governance environment through an evolved tokenomic model and PoS governance.
  • The tokenized reward system, backed by an ever-increasing number of native blockchain tokens, enhances a fully sustainable liquidity mining, trading and governance ecosystem.

“One of the key elements of Unifi is that it is built as a sustainable system. When token holders realize that the DeFi platform's rewards are not sustainable, their beliefs disappear. It is precisely that the market started to react negatively to other DeFi platforms. That's why. Unifi's tokenized rewards structure is an ecosystem built to inspire each other and last a long time.

  • Unifi will continue to expand and integrate more blockchain communities. This will create a variety of products and services that can be built on top of unlimited liquidity mining and protocols.

What is UniFi Protocol?

The UniFi Protocol is a collection of decentralized MulchEni smart contracts that are interoperable in a non-custodial way that provides the building blocks for next-generation DeFi development. UniFi is not a clone of Uniswap or other AMM exchanges. The main feature is a customized smart contract that solves the limitations of the Uniswap fork version of DeFi platforms (UnisWap clone). UniFi's unique token economy captures real value from all transactions made on the protocol and is fully verifiable on the chain.

UTrade, a trading platform built on the basis of the protocol , operates on severalblockchains such as Tron, Ontology, Harmony, and Binance Smart Chain,   and has an active community that continues to grow as it is launched on a new blockchain. UniFi will serve as a bridge connecting Ethereum's huge DeFi market with Ontology, Binance Smart Chain, Harmony, Tron, and ICON. The blockchain industry is well aware that interoperability is the future, and UniFi is leading the trend with its extensive knowledge of the cross-chain token economy.

The UniFi Protocol was developed by the Sesameseed team, a multi-chain staking community with over 2 years of experience and knowledge in cross-chain functionality. The staking reward token SEED exists on several different blockchains and allows seamless exchange between chains. In other words, Sesameseed's development team has the expertise to rapidly scale Unify in complex multi-chain environments.

Unifi Token Economy

uTrade is a Proof of Concept to empower UNFI, UniFi's global governance token, using multi-chain and multi-platform liquidity mining. For more information on UNFI Tokens, please refer to the  Unifi White Paper Appendix ,  Proof-of-Stake article ,  Light Paper (UNFI Tokenomics Data) and  Unifi Tokens Guide .

Transaction reward bonus

Unifi believes that a well-incentivized community of traders and liquidity providers (LPs) will provide an even more rewarding experience for all users of the platform. Traders can receive bonus rewards for all trades in the UniFi Protocol. (Excluding UPeth transactions)

UP: Liquidity Mining Token

UP token is a liquidity mining token that exists for each blockchain on which the UniFi protocol operates. In uTrade, the liquidity provider receives a portion of the transaction fee for all transactions of every pair, and the yield farming function that does not require a separate transaction fee is built into UP token.

Here's how it works:

All UP tokens are backed by the native token of the specific blockchain in which the token exists. For example, UPeth on Ethereum can be redeemed in ETH at any time, and UPbnb on Binance Smart Chain can be redeemed in BNB. Each blockchain has a structure in which the number of native tokens that can be redeemed as UP tokens continues to increase over time. This is because a part of each transaction fee is accumulated to increase the redemption value of UP tokens. These processes are managed by smart contracts that have passed audits from independent organizations. UP token is a long-term sustainable liquidity reward token on each blockchain.

This means that Unify's liquidity provider rewards are higher than other DeFi products. Liquidity providers don't have to execute as many transactions as they do, so they can get more rewards.

Through the increase in the redemption value of UP tokens, all transaction fees are automatically distributed to UP token holders, so no additional network fees are required. And after earning UP tokens, there is no need to stake, so there is no additional network fee required.

UNFI: Governance Token

UNFI Token is the first sustainable DeFi token to incorporate a Proof of Stake element into a strong DAO representative governance model. Under the UNFI PoS ecosystem, it is used to select a representative from among the candidates for the UNFI Representative Council, and the representative can vote or propose proposals on matters that require major decisions of the Unifi DAO while obtaining governance rewards. UNFI token holders can receive staking rewards by staking UNFI tokens, and they can also receive more rewards from the Council of Representatives who delegated the staked UNFI.

The global governance model is designed so that liquidity miners and users can get UNFI tokens as a reward for participation by participating in community referral voting or governance decisions on each blockchain.

For reference, it is recommended to use MetaMask or MathWallet for the UniFi protocol, and if you are curious about more details related to Unifi, UP or UNFI tokens, please refer to the post I wrote earlier. wish. UNFI's Proof-of-Stake Global Governance Model drives the formation of a community where everyone works together to make UNFI a success.