Unbound Finance Launches New Version Supporting Stable Currency Lending on Arbitrum One

04/03/2023 11:07 • Tech Ticker • 146 views

According to reports, the DeFi protocol Unbound Finance will launch a new version on April 11th, supporting the lending of stable currency using Uniswap LP as collateral on Arbitrum One.

Unbound Finance will support Uniswap LP as collateral for lending

The world of decentralized finance, or DeFi, is expanding at a rapid pace. The latest news comes from Unbound Finance, which is set to launch a new version on April 11th. This new version will support the lending of stable currency using Uniswap LP as collateral on Arbitrum One. Let’s take a closer look at what this means for the DeFi community.

What is Unbound Finance?

Unbound Finance is a DeFi platform that enables users to earn interest on their crypto assets. This is done by providing liquidity to various DeFi protocols, such as Uniswap, SushiSwap, and Balancer. In return for providing liquidity, users receive rewards in the form of a new token called UNB.

What is Arbitrum One?

Arbitrum One is a Layer 2 scaling solution for the Ethereum network. It can handle up to 4,000 transactions per second, making it a more scalable option than the base layer of Ethereum. It also provides faster transaction confirmation times and lower fees.

How Does the New Version of Unbound Finance Work?

The new version of Unbound Finance will allow users to borrow stable currency by collateralizing their Uniswap LP tokens on Arbitrum One. This means that users can provide liquidity to Uniswap and also use that same liquidity as collateral for borrowing. The stable currency that users can borrow includes USDC, USDT, and DAI.

Benefits of the New Version

The new version of Unbound Finance offers several benefits for users. First, it provides an additional way to earn yield on Uniswap liquidity. Second, it allows users to borrow stable currency without having to sell their crypto assets. This is particularly useful in a bull market when users may not want to sell their assets and miss out on potential gains. Finally, using Arbitrum One as a scaling solution means that transactions will be faster and cheaper than on the base layer of Ethereum.

Potential Risks

As with any DeFi platform, there are potential risks involved. One risk is the possibility of a hack or exploit that could lead to the loss of funds. Unbound Finance has implemented several security measures, including audits by multiple third-party firms. However, there is always a risk involved when using DeFi platforms.

Conclusion

The launch of Unbound Finance’s new version supporting stable currency lending on Arbitrum One is an exciting development for the DeFi community. It offers users a new way to earn yield on their crypto assets and borrow stable currency without having to sell their assets. While there are potential risks involved, Unbound Finance has taken steps to mitigate these risks. Overall, this is a positive step forward for the DeFi ecosystem.

FAQs

1. Can anyone use Unbound Finance’s new version?
– Yes, anyone with Uniswap LP tokens can use the new version to earn yield and borrow stable currency.
2. What happens if the value of the collateral drops?
– If the value of the collateral drops below a certain threshold, the borrower may be subject to liquidation. It’s important for users to monitor their collateral value and manage their risk accordingly.
3. How does Arbitrum One compare to other scaling solutions?
– Arbitrum One is one of several Layer 2 scaling solutions for Ethereum. It offers faster transaction confirmation times and lower fees than the base layer of Ethereum, but there are other scaling solutions that may be more suitable for certain use cases.

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