What if I told you there was a Uniswap which allowed for 50x leverage trading, while your margin is fully backed on-chain?
Let me introduce you to @UnstoppableFi
A 🧵...
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Let me introduce you to @UnstoppableFi
A 🧵...
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What we’ll cover:
📶 A New Way of Leverage
⚙️ Unlimited Market Depth
đź’µ Real World Assets
⚖️ Dual Token Economy
Let’s dive in🏊‍♂️
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📶 A New Way of Leverage
⚙️ Unlimited Market Depth
đź’µ Real World Assets
⚖️ Dual Token Economy
Let’s dive in🏊‍♂️
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Unstoppable is a native dex looking to put a stop to centralized exchanges through a multi-platform approach, covering all the necessary areas of a users trading life cycle.
DeFi has long awaited a fix to transparent and deep order books, and the solution is now here.
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DeFi has long awaited a fix to transparent and deep order books, and the solution is now here.
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A New Way of Leverage📶
While spot is a feature of their exchange, the needle in the hay stack is providing a unique leverage solution, by backing all trades 1:1 with the underlying asset.
Meaning trades aren’t synthetic perps or futures contracts which act as a “receipt”.
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While spot is a feature of their exchange, the needle in the hay stack is providing a unique leverage solution, by backing all trades 1:1 with the underlying asset.
Meaning trades aren’t synthetic perps or futures contracts which act as a “receipt”.
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This benefits the ecosystem as spot buying allows for less leverage in the system, allowing for greater price discovery due to reduced open interest, meaning price movements are more sustainable and less likely for large liquidation wicks.
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Providing under collateralized borrowing for leveraged positions via single-sided liquidity, enables LPs to never be exposed to the other side of the trade (impermanent loss).
The only risk for LPs is that liquidations need to be performed correctly by the smart contract.
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The only risk for LPs is that liquidations need to be performed correctly by the smart contract.
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Unlimited Market Depth⚙️
Minimal market depth has been a reason for a lackluster DeFi environment over the past 12-24 months, users can’t effectively build complex yield strategies as liquidity isn’t available to do so.
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Minimal market depth has been a reason for a lackluster DeFi environment over the past 12-24 months, users can’t effectively build complex yield strategies as liquidity isn’t available to do so.
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This explains why there is such a high level of market volatility and why token prices are so easily manipulated with (relatively) little capital.
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Unstoppable has implemented LP tranches, which are pieces of a pooled collection of securities, split up by risk, to attract LP’s with varying levels of exposure.
By offering a high-risk tranche, the DEX attracts users who are willing to take on more risk for higher returns.
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By offering a high-risk tranche, the DEX attracts users who are willing to take on more risk for higher returns.
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This can increase the overall liquidity of the pool, providing a more attractive option for traders looking to maximize returns.
Risk management is now improved due to separating the liquidity in different tranches with varying levels of risk exposure.
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Risk management is now improved due to separating the liquidity in different tranches with varying levels of risk exposure.
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This helps prevent the entire liquidity pool from being affected by a sudden drop in the value of the underlying asset.
Often we’ll see derivative DEX’s suffer from large volatility as order books consist of shallow liquidity.
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Often we’ll see derivative DEX’s suffer from large volatility as order books consist of shallow liquidity.
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Unstoppable enhances the stability of the liquidity pool through better risk management, benefiting both the protocol and users.
Users now have a more reliable trading experience because the pool is less likely to experience abrupt volatile changes in the market.
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Users now have a more reliable trading experience because the pool is less likely to experience abrupt volatile changes in the market.
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Real World Assetsđź’µ
Whilst being a heavily debated subject, personally I believe decentralized real world assets (RWA) will play a large role in crypto’s adoption and volume.
The current hurdles and hoops needed to jump through for access isn’t efficient in the slightest.
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Whilst being a heavily debated subject, personally I believe decentralized real world assets (RWA) will play a large role in crypto’s adoption and volume.
The current hurdles and hoops needed to jump through for access isn’t efficient in the slightest.
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The developers recognized the new legal crackdowns on stablecoins.
Which is why they're working with completely regulated banks to build an infrastructure that will allow for the direct minting of a 1:1 backed stablecoin from your personal/corporate bank.
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Which is why they're working with completely regulated banks to build an infrastructure that will allow for the direct minting of a 1:1 backed stablecoin from your personal/corporate bank.
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Although largely ambitions, these devs have a strong background with commercial bridging of this type.
The aim is to become the leading on-chain destination for 24/7, 1:1 backed FX swaps and FX leveraged trading capabilities.
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The aim is to become the leading on-chain destination for 24/7, 1:1 backed FX swaps and FX leveraged trading capabilities.
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If successful in their stablecoin conquest, the same tech used to tokenize them can be easily replicated with any RWA’s.
Granted there’s a secure custodian on the Tradfi side, any tradable assets can be able to be brought on-chain.
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Granted there’s a secure custodian on the Tradfi side, any tradable assets can be able to be brought on-chain.
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Through bridging RWA’s on-chain, protocol treasuries would now have the option of keeping funds in more stable assets, fully backed by real world collateral.
This will be a huge catalyst, allowing for more liquidity to stay inside crypto, whilst treasuries receive yield.
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This will be a huge catalyst, allowing for more liquidity to stay inside crypto, whilst treasuries receive yield.
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Dual Token Economy⚖️
A constant concern in crypto is upcoming vesting unlocks and mercenary VC’s, LP’s and airdrop farmers looking to unload from early valuations.
Often causing keen investors to not enter, as they suspect they’ll be providing exit liquidity.
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A constant concern in crypto is upcoming vesting unlocks and mercenary VC’s, LP’s and airdrop farmers looking to unload from early valuations.
Often causing keen investors to not enter, as they suspect they’ll be providing exit liquidity.
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Unstoppable has taken this into account, by only allowing $UND to be distributed via public sale and the initial seeded DEX market liquidity, all other token allocations for team, advisors, bonuses, incentives and strategic partnerships will exist in the form of $eUND.
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While liquid and transferable, eUND will not have any protocol-owned DEX liquidity seeded, therefore unable to be dumped on the community.
Users can vest eUND linearly over 12 months to receive UND, granting them access to real yield.
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Users can vest eUND linearly over 12 months to receive UND, granting them access to real yield.
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Maximum token supply is capped at 100 million, 30 million will start as UND & 70 million as eUND.
The initial circulating supply will be 30 million UND. 20 million will be sold via public sale at a $5m FDV, whilst the rest of the 10 million are deployed for DEX liquidity.
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The initial circulating supply will be 30 million UND. 20 million will be sold via public sale at a $5m FDV, whilst the rest of the 10 million are deployed for DEX liquidity.
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Staking UND will grant 100% share in protocol revenue generated.
Future potential use cases could also include using UND as collateral in the masternode system, creating decentralized backend infrastructure, providing a vital role in security.
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Future potential use cases could also include using UND as collateral in the masternode system, creating decentralized backend infrastructure, providing a vital role in security.
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Conclusionđź’«
What strikes me the most is the potential to margin trade under spot assets.
Because of DeFi's shallow market depth, particularly because it is spread across chains, futures contracts/synthetics cause far more volatility than is required.
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What strikes me the most is the potential to margin trade under spot assets.
Because of DeFi's shallow market depth, particularly because it is spread across chains, futures contracts/synthetics cause far more volatility than is required.
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The reason we’ll see exponential growth and TVL is due to the onboarding of RWA’s and efficient on & off-ramping through traditional banks.
DeFi is significantly lacking liquidity, but there’s no viable way for institutional size to effectively move on and off-chain.
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DeFi is significantly lacking liquidity, but there’s no viable way for institutional size to effectively move on and off-chain.
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If you got some value out of this thread, feel free to like and retweet so others can see as well.
I'm always posting content so I'll make your follow worthwhile too 🙂
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I'm always posting content so I'll make your follow worthwhile too 🙂
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