UNION Joins the UniLend Ecosystem to Bring Collateral Optimization to UniLend Users
UniLend is a permission-less decentralized protocol that combines spot trading services and money markets with lending and services through smart contracts where we provide Permission-less listing of assets, lending and borrowing where the individual is reward at an interest rate or the individual is required to pay interest rate respectively,Spot trading of corresponding pairs on UniLend platform, providing liquidity where individuals will be rewarded, Governance and Native utility tokens.
About Union Finance
UNION is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model where DeFi participants manage their multi-layer risks across smart contracts and protocols in one scalable system. At Union Finance, we decreases the barriers to entry for retail users and lays the foundation for institutional investors.
We provide full StackFull Stack DeFi Protection such as safeguarding numerous risk factors,open Access for All Members where there is no KYC and Peace of mind for DeFi to create a better environment.
Union Finance is joining the UniLend ecosystem to bring over the tools that can help users optimize their collateral positions in borrowing of assets.With UNION’s C-OP product Unilend Users can now optimize their collateral positions and it was defined by the UNION team that the C-OP is an American-styled put option that protects against inefficient collateralization.
Union Finance is now on UniLend Ecosystem so UniLend will be listing UNION’s native token, $UNN, on the UniLend platform and also collaborate with Union Finance to explore further areas in which they can work together to increase the momentum of DeFi at large.
C-OP & Collateral Optimization
Unilend which is a decentralized lending platforms will require users have to put up a specific amount of a certain token as collateral if they want to borrow another token. Usually, collateral amount tends to be equivalent to 150% of the value of the borrowed tokens. For example, if you wanted to borrow 500 $UFT(valued at $100), you would have to deposit $150 in ETH as collateral inorder to initiate the transaction.
But with Union Finance.they have created a tool called C-OP, which will provide UniLend user’s with the opportunity to optimize their collateral positions and protect themselves against inefficient collateralization. Optimizing collateral positions is something that not a lot of lending platforms in the space have looked into yet, and Unilend excited to be among the first to integrate UNION’s C-OP product to enable more efficient use of collateral for our users.
Presently, the collateral put in crypto lending platforms by users is pretty much left as an idol asset and it does not provide much benefit to the borrowers. Using C-OP, UniLend will be able to allow borrowers to use some of their collateral to buy some protection for their collateral under the unfortunate circumstance of liquidation.
Liquidation is an event in cryptocurrency money markets when the price of the token used as collateral by the borrowers falls to a certain level traders don’t wants to experience it. Once the price drops low enough, a smart contract will execute a sell order for all the collateralized tokens and give them to the lender. Given that decentralized finance and cryptocurrency markets as a whole tend to be extremely volatile, borrowers will benefit hugely from having the ability to hedge some of their losses in the event of a liquidation.
C-OP or collateral optimization
This is a tool provide borrowers with the ability to hedge some of their collateral. With American-style put options which members can buy a derivative contract which allows them to sell an underlying commodity within a speculated time frame. In the case of C-OP, borrowers on UniLend Plartform will have the ability to use a portion of their collateral to buy a token called $uUNN. This $uUNN token gives the user the ability to sell their underlying collateral tokens at a future date (before expiration) for an agreed upon strike price. Thus, the uUNN token essentially operates in an identical manner to an American-style option, but fully decentralized now and, C-OP will enable UniLend users to protect a percentage of their capital in the case of liquidation.
This collaboration between UniLend and Union will help to further the goals of integrating the markets with a unique borrowing facility to step forward in the maturity of decentralized finance within the DeFi markets as a whole such as creating some of the most robust derivative products within crypto.
Partnership between Unilend and Union Finance will not be limited to the above highlights, because they will scout more opportunities in order to grow both community in DeFi markets.