Unbound.Finance
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Unbound.Finance
Introduction
Documentation
Whitepaper
FAQ's
Articles
Introducing Unbound Finance
No Liquidations in Unbound Explained
Simulating Impermanent Loss
Block Limit Lock Mechanism - A Security Layer
Price Oracle Solution for Unbound
Guides
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FAQ's
Why did you start Unbound/Origin Story?
We identified huge potential in the AMM space and one its derivative, LPT seems like the perfect answer to liquidations in the crypto industry. They are comparatively very stable and make great collateral. Hence we started unbound to take a crack at creating a new decentralized stable coin.
How Does Unbound Work?
We work on the derivative layer of AMM . We collateralize LPT and mint synthetic assets. The amazing part about this is we do not create a debt position since we do not have a liquidation engine.
Do We Need another Stablecoin? Yes of course though not just a stablecoin but a Decentralized stablecoin. This is first iteration of a Decentralized stable coin which does not create a debt position and the users have no risk of getting liquidated.
How is UND different from DAI? They are both stablecoins which are minted through collateralization of digital assets but the major difference is the fact that UND does not have a liquidation engine. Why AMMS?
Why LPTs - AMM is Automated Market Makers and we consider it as a zero to one invention. Basically AMMs are Decentralized Exchanges that have pools of ERC20 tokens that can be swapped from one to another. It's not about the exchange or trade but the possibility of value discovery in the absence of predetermined variables that are present in order book exchanges that makes it one of the truest free markets.
Why does Unbound not have a liquidation engine:
A liquidation engine is needed when the value of collateral corrects causing it to be a threat for recovering the capital loaned. Now traditional assets in crypto that are used for collateral like ETH, BTC or any large cap coins would need to be liquidated at corrections of about 40% but we use LPT that have a tolerance of 75-80% in similar circumstances. Hence we preferred to have a SAFU fund than a LE. The best part is these LPT represents more than 8 billions today, that is sitting in users wallets.
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Introducing Unbound Finance
Last modified 11mo ago
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