<h3>Unbound — Enhancing Finnancial Strategies and Investments in DeFi</h3>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*XEwsIir9Rz1qcdZ1DOJH9w.png"></figure>In the fast-paced decentralized finance (DeFi) world, innovation is constantly reshaping the landscape. Unbound the decentralized lending protocol is consistently evolving to make the DeFi space more capital-efficient. By using liquidity provider tokens (LPTs) and Uniswap V3 positions as collateral, Unbound allows users to borrow stablecoins without having to sell their assets. This frees up capital that can be used to earn additional yield or to participate in other DeFi activities.
Unbound recently launched its V2 mainnet on the Arbitrum One network, offering a plethora of benefits for DeFi users. Let’s explore the advantages of using Unbound and how it can enhance your financial strategies and investments.
<h4>Uncompromised LP Benefits</h4>
As liquidity providers participate in decentralized exchanges (DEXes), they receive a proportional share of the liquidity provisioning fee and acquire liquidity pool tokens (LPTs). These LPTs can serve as collateral on Unbound, allowing users to borrow the stablecoin UND. Unbound V2 automates the process of staking the LPTs used as collateral into high-yield farming pools, resulting in earnings from the attractive APY offered by the pools. This ensures that users, as liquidity providers, can still benefit from LP mining even when utilizing their LPTs as collateral. Thus users potentially gain additional advantages by leveraging their LPTs on Unbound.
<h4>Scalability</h4>
DeFi is spearheading a paradigm shift with its groundbreaking dexes that claim heightened capital efficiency and unparalleled liquidity depth. When Uniswap unveiled its v3 iteration, it unleashed a torrent of excitement throughout the industry, captivating the collective imagination of participants. As a result, numerous protocols are now diligently upgrading their technologies to sustain their relevance and impact within the space.
Similarly, Unbound remains at the forefront of this continuous innovation, scaling alongside the new generation of decentralized exchanges (dexes). Unbound recognizes the importance of this paradigm shift and actively integrates these advancements into its platform. By leveraging the NFT positions of these new-age dexes, Unbound empowers users to unlock additional funds in the form of UND stablecoin, further enhancing capital efficiency and enabling greater financial leverage. This seamless assimilation of novel advancements solidifies Unbound’s position as a leader in the industry, captivating the collective imagination of participants and ensuring its sustained relevance and impact within the ecosystem.
<h4>Higher APY</h4>
Users participating in Unbound are not only able to earn substantial returns but also gain access to a diverse array of lucrative opportunities. By engaging in liquidity provisioning, they can secure attractive liquidity provisioning fees and liquidity mining fees, effectively maximizing their earning potential. Additionally, participants have the unique advantage of receiving stablecoin UND, ensuring a stable and reliable income stream. Moreover, through UND staking, users can enjoy the enticing prospect of warm high APR, further enhancing their profitability within the Defi ecosystem.
In conclusion, Unbound is a dynamic and innovative lending protocol that continually adapts to the evolving DeFi landscape. By allowing users to borrow stablecoins without selling their assets, Unbound promotes capital efficiency and offers a range of benefits. Overall, it presents a compelling opportunity for users to optimize their financial strategies and investments in the thriving realm of DeFi.
<h3>About Unbound Finance</h3>
Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better yield opportunities to improve the overall capital efficiency of the DeFi ecosystem. The platform lets Defi users lock in LP tokens to borrow Unbound’s native stablecoin, UND, at 0% interest rates. In version 2, Unbound will enable users to collateralize concentrated liquidity positions of next-gen AMMs such as Uniswap V3 and LP tokens of volatile asset pools. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi Dexes and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound uses liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
<h3>Stay Tuned</h3>
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> | <a href="http://app.unbound.finance/">V2 Mainnet</a> |<a href="https://v2-testnet.unbound.finance/">V2 Testnet</a> | <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> | <a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a> | <a href="https://lenster.xyz/u/0xunbound">Lens</a>
<img src="https://medium.com/_/stat?event=post.clientViewed&amp;referrerSource=full_rss&amp;postId=1f41033d7a75" width="1" height="1" alt="">

Unbound — Enhancing Finnancial Strategies and Investments in DeFi

<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*h_hT_nJJhnGenEomB_2m2A.png"></figure>These are exciting times for the world of DeFi. There are innovations and infectious energy in every nook and corner, and our team at Unbound has not been immune.
<blockquote>We’re thrilled to announce that <a href="http://app.unbound.finance/">Unbound V2</a> is now officially live on the Arbitrum One mainnet, bringing new possibilities and opportunities to the DeFi space.</blockquote>
<h3>What is Unbound V2?</h3>
With Unbound V2, liquidity providers (LP) on automated-market-making (AMMs) protocols like Uniswap V3 and Sushiswap can deposit their liquidity pool tokens as collateral to obtain dollar-denominated loans in our stablecoin, UND. They can then use the UND liquidity to trade and make profits in all the exciting DeFi projects, or they can leverage their existing LP positions.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*ECxPVV33UcCSKU2c"></figure><h3>How is Unbound V2 different?</h3>
In our first version, Unbound V1 supported only stablecoin AMM tokens, which allowed us to provide interest-free, no-liquidation loans for perpetuity. With V2, it will now support liquidity tokens for volatile token pools like wETH/DAI as well. Obviously, this requires us to enable liquidations to ensure the necessary capital backing to support the $1 price of UND. We will also support liquidity on Uniswap V3 via liquidity aggregators like DefiEdge, among others.
<h4>Supported Collateral pools:</h4>
At the launch of Unbound V2 mainnet, the platform will accept the following pools as collateral on the Arbitrum One network:
<ol>
<li>
USDC-DAI on DefiEdge with a maximum UND borrowing limit of 1 million
</li>
<li>
wETH-USDT on DefiEdge with a maximum UND borrowing limit of 500k
</li>
<li>
USDC-DAI on Suhiswap with a maximum UND borrowing limit of 250k
</li>
<li>
wETH-USDT on Sushiswap with a maximum UND borrowing limit of 250k
</li>
</ol>
The minimum collateralization ratio (MCR) for each collateral type is initially set to 110%. It is important to note that the value of these parameters is not fixed and is subject to change in future. If you do not see your favorite token pair here, do not fret. Moving ahead, we will add support for other Dexes and collateral pairs. You can also reach out to our incredible team members on <a href="https://twitter.com/unboundfinance">Twitter</a> and <a href="https://t.me/unboundfinance">Telegram</a> with the pool you want to see, and if our risk analysis team gives the green signal, we will add that pairing to our growing list of accepted collateral.
<h3>Deployment:</h3>
The Arbitrum addresses used for the deployment of Unbound V2’s contracts are as follows:
UND stablecoin Token Adress: 0xD4c556bB8D9ECef063C5d75c65D6E31E46990367
UND-USDC Uniswap V3 pool: 0xbdb78185c9fa32f0c97e2f04269a9ab497323c89
UND-USDC DefiEdge strategy: 0x7e8c9986f623fb469509c2cdcdd89ac5e833af5e
<h3>How to Maximize Your Defi Earnings with Unbound V2</h3>
As a liquidity provider (LP), you can use Unbound V2 to compound your existing Defi earnings using the steps below:
<ol>
<li>Collateralize supported LP tokens or Uniswap V3 positions to borrow UND stablecoin.</li>
<li>Claim yield farming rewards directly through the Unbound V2 platform on your collateralized LP tokens.</li>
<li>Add liquidity to the <a href="https://app.defiedge.io/s/arbitrum/0xf5ee81b3e65f141561e83666b17a5141ea243181/add">UND/USDC</a> strategy on DefiEdge with the borrowed UND to earn swap fees.</li>
<li>Stake the DE shares received in step 3 into the <a href="https://app.defiedge.io/farm?network=arbitrum">UND-USDC LP mining farm</a> on DefiEdge to earn additional rewards in $UNB, the native governance token of Unbound.</li>
</ol>
If you prefer, you can also swap the borrowed UND for any other cryptocurrencies to use in other DeFi applications.
For example, let’s say you’re currently earning ~6% APR in fees through the USDC-DAI strategy on DefiEdge. By depositing $100 worth of DE shares into Unbound V2 and collateralizing them at a ratio of 143%, you can borrow 70 UND. With this UND, you can add liquidity to the UND-USDC pool on DefiEdge and earn additional swap fees. Furthermore, you can stake the DE shares you receive from DefiEdge to earn rewards in UNB, Unbound’s native token. This compounding effect can increase your initial 6% returns to 10% or even 15%! Alternatively, if you prefer, you can also swap your UND for other assets and earn fees from Uniswap.
<h3>How safe are Unbound V2 contracts?</h3>
Our contracts have been rigorously vetted and scrutinized by some of the industry’s best auditors and security analysts, including Riley Holterhaus and Watchpug. We take the security of our platform very seriously and have implemented their recommendations to ensure the safety of our users’ funds.
<h3>Guides</h3>
To assist our users in maximizing their earnings in the DeFi space through the Unbound V2 platform, we have created a comprehensive guide that provides step-by-step instructions for using the platform. By following these instructions, you can make the most of Unbound V2 and enhance your current DeFi yield.
<a href="https://unboundfinance.medium.com/the-unbound-v2-mainnet-guide-2b9edf672991">The Unbound V2 Mainnet Guide</a>
<h3>About Unbound Finance</h3>
Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better yield opportunities to improve the overall capital efficiency of the DeFi ecosystem. The platform lets Defi users lock in LP tokens to borrow Unbound’s native stablecoin, UND, at 0% interest rates. In version 2, Unbound will enable users to collateralize concentrated liquidity positions of next-gen AMMs such as Uniswap V3 and LP tokens of volatile asset pools. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi Dexes and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound uses liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
<h3>Stay Tuned</h3>
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> | <a href="http://app.unbound.finance/">V2 Mainnet</a> |<a href="https://v2-testnet.unbound.finance/">V2 Testnet</a> | <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> | <a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a> | <a href="https://lenster.xyz/u/0xunbound">Lens</a>
<img src="https://medium.com/_/stat?event=post.clientViewed&amp;referrerSource=full_rss&amp;postId=887b0b634fcf" width="1" height="1" alt="">

Unbound V2 Launches on Arbitum One Mainnet

<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*ok9hm6lqveHVzEYL6vvC9Q.png"></figure>Hello Unbounders,
We are thrilled to announce that the much anticipated Unbound V2 is now live on the Arbitrum One mainnet!
Users can now delve into features of the latest version of the protocol, including collateralization Uniswap V3 liquidity positions and volatile LP tokens.
In this article, we will introduce you to a comprehensive overview of all the features and functionalities.
The steps to the following functionalities of Unbound V2 have been covered in this guide:
<ol>
<li>Creating a trove or a debt position</li>
<li>Depositing additional collateral</li>
<li>Borrowing UND</li>
<li>Withdrawing excess collateral</li>
<li>Repaying UND</li>
<li>Claiming vault-wise liquidity mining rewards</li>
<li>Redeeming UND</li>
</ol>
<h4>Prerequisites before using the mainnet:</h4>
Before using the platform, users must make the following preparations:
<ul>
<li>Connect your Metamask wallet to the Unbound app</li>
<li>Switch to the Arbitrum One network</li>
<li>Acquire LP tokens for collateralization</li>
</ul>
Note: To collateralize Uniswap V3 positions, you will need to deposit assets into the whitelisted DefiEdge pool and acquire the corresponding DEshares. The debt position that you create by collateralizing the supported assets is referred to as a “Trove.”
<h3>How to Create a Trove</h3>
<ol><li>Once you have acquired LP tokens for any of the whitelisted pools, you can proceed to create a trove. In this tutorial, we will create a trove of Sushiswap’s WETH-USDT pair.</li></ol>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*bjeeoGIUmUUgo-pi"></figure>2. Click on ‘Create Tove’ to open a trove.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*CnM2rOZmEMC81ShW"></figure>3. Enter the amount of LP tokens you want to deposit as collateral and the amount of UND you want to borrow against it. You can also select ‘Max’ to lock up your entire LP token holdings. Ensure your collateralization ratio (CR) is fairly above the Minimum Collateralization Ratio (MCR) of the corresponding Unbound vault to avoid the risk of account liquidation.
Note: The minimum amount of UND that can be borrowed is 50 UND for any given collateral type.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*lt7JOfmgMHQZdDhz"></figure>4. Next, ‘Approve’ and ‘Confirm’ the transaction in your wallet.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*fGD2sbi-wAjKVmfb"></figure><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*7pGKVR1vY1dbJCAS"></figure>5. Click on ‘Trove Detail Page’ to view the details of your trove.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*5tBp_H8bkiSkyEVn"></figure>6. You can now view a summary of your trove that includes details such as the amount of collateral deposited, amount of UND borrowed, the collateral ratio (CR) of your account, and the price at which the deposited collateral will be liquidated (Liquidation price).
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*PBl9SR-zo75ederTsLdmig.png"></figure><h3>How to Deposit Additional Collateral</h3>
<ol><li>To strengthen your position, you can add more collateral. Simply click on the ‘Details’ tab of the corresponding debt position under “Your Trove”.</li></ol>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*_dcvtnjXQVl47Y1C"></figure>2. Click on ‘Deposit’ and enter the amount of additional collateral you want to lock or alternatively, you can use the ‘Max’ button to collateralize your entire LP holding.
You can also simultaneously borrow more UND by clicking on the “Borrow UND” check box.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*S9BcHnVYv50CC7xo4jWy1Q.png"></figure>4. Finally, just ‘Approve’ and ‘Confirm’ the transaction in your wallet.
<h3>How to Borrow UND</h3>
<ol><li>Once you have created a Trove, you can borrow additional UND at anytime by clicking on the “Borrow” tab inside the “Trove Details” page.</li></ol>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*0DICoiTthapiJ0MH"></figure>2. Enter the amount of UND you want to borrow.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*bpIoeqgh8VJxedJW"></figure>3. Click on ‘Borrow UND’ and confirm the transaction in your Metamask wallet.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*VrWyrMQiB_A83KNx"></figure>4. You have now successfully borrowed additional UND.
<h3>How to Withdraw Excess Collateral</h3>
Unbound V2 allows you to withdraw excess deposited collateral at any time by following the simple steps below:
<ol><li>Visit your Trove details page.</li></ol>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*XSmBF5UD5ioMqO3d"></figure>2. Click on the ‘Withdraw’ tab.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*hOTCZbFh-rHF5-ZE"></figure>3. Enter the amount of collateral you want to remove and click on ‘Withdraw LP’.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*Qox6kj3pIS1ZTKdD"></figure>4. Next, ‘Confirm’ the transaction in your wallet.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*SN8ny93qey6s9YRr"></figure>You have now successfully withdrawn your excess collateral.
<h3>How to Repay UND</h3>
In the latest version, users can unlock the underlying collateral at any time by simply paying off their UND debt either partially or completely using the steps below:
<ol><li>Go to the Trove details page and select “Repay UND”.</li></ol>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*4GCRdlzxi1tJwuV7"></figure>2. Enter the amount of UND you want to repay and click on ‘Repay UND’. Alternatively, click on “Repay Max” to repay the maximum possible UND debt.
Note: “Repay UND” enables you only to repay the UND loan while still maintaining the minimum debt requirement of 50 UND.
To repay your complete debt and close the position, click on the “Close Trove” checkbox.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*olhLEerPr_YOdTto"></figure>3. Confirm the transaction in your wallet.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*2zlf_-SrYKk_IxQt"></figure>Yay! You have successfully repaid your UND debt.
<h3>How to claim vault-wise liquidity mining rewards</h3>
Unbound V2 auto stakes users LP tokens into the most lucrative yield farming pools so you do not miss out on the liquidity mining rewards.
<ol><li>To claim your LP mining rewards, visit the trove details page</li></ol>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*Gb8QQQyjK2wEUw7R"></figure>2. You can now see the accumulated farming rewards.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*GMTwMOyP0xeeBQbB"></figure>3. Click on ‘Claim’ and confirm the transaction in your wallet.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*jRnYmldwsY9ueylx"></figure>You have now successfully claimed all your rewards.
<h3>How to Redeem UND</h3>
At Unbound v2, you have the opportunity to exchange UND tokens at their full face value for an equivalent amount of collateral.
<ol><li>Click on the “Redeem UND” tab.</li></ol>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*ulAvupo2pdj-sqII"></figure>2. Select the vault for which you want to redeem UND. We will select Sushiswap’s WETH-USDT vault.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*9FmQVTUqggOm753w"></figure>3. Next, enter the amount of UND you want to redeem.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*4d5gmRhIsyp3xRw6"></figure>4. Click on ‘Redeem UND’ and confirm the transaction in your wallet.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*MM1-vINRgN1E4wzk"></figure>You have now successfully redeemed your UND for the corresponding collateral.
<h3>How to deposit liquidity to UND pools and stake UND DEShares</h3>
<ol><li>Visit the “Earn” page on the Unbound App and click on ‘Add Liquidity’</li></ol>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*emK5v1mnsL_VO0ZI"></figure>2. Enter the amount of UND and USDC you want to deposit in the strategy. Use the checkbox feature to also stake your DEShares into the yield farm. Then approve each transaction.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*t9CrxXDh5hsiB-lP"></figure>3. Once approved, Click on ‘Deposit and Stake’
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*H-B_hXDLoegrD1QT"></figure>4. Confirm both deposit and stake transactions in your wallet.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*UTqhj7rcMyY9jcIU"></figure>You have now successfully deposited liquidity into the strategy and also stake your DEShares.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*5LBvpmbj4wEVOKnA"></figure><h3>About Unbound Finance</h3>
Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better yield opportunities to improve the overall capital efficiency of the DeFi ecosystem. The platform lets Defi users lock in LP tokens to borrow Unbound’s native stablecoin, UND, at 0% interest rates. In its version 2, Unbound will enable users to collateralize concentrated liquidity positions of next-gen AMMs such as Uniswap V3 and LP tokens of volatile asset pools. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi Dexes and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound uses liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
<h3>Stay Tuned</h3>
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> | <a href="https://v2-testnet.unbound.finance/">V2 Testnet</a> | <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> | <a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a> | <a href="https://lenster.xyz/u/0xunbound">Lens</a>
<img src="https://medium.com/_/stat?event=post.clientViewed&amp;referrerSource=full_rss&amp;postId=2b9edf672991" width="1" height="1" alt="">

The Unbound V2 Mainnet Guide

<figure><img alt="" src="https://cdn-images-1.medium.com/max/720/0*F0WJ0COIcQNOipOX"></figure>The highly anticipated Unbound V2 mainnet launch is just around the corner and we couldn’t be more excited to celebrate this milestone and express our appreciation for the unwavering support of our community members. Through this mainnet, Unbound will take capital efficiency to the next level by facilitating collateralization of Uniswap V3’s concentrated liquidity positions as its pioneer feature.
To celebrate the launch, we are introducing a five-week-long campaign with support from leading industry protocols including Arbitrum, Huobi Global, Polkastarter, Sushiswap, Frontier, Multichain, Router Protocol, Galxe and DefiEdge.
<h4>Campaign Rules:</h4>
Reward Pool: The total reward pool for the campaign is $5000 in UNB.
Duration: The campaign will run from 7th February to 30th April 2023.
Join the campaign through this link: <a href="https://galxe.com/Unbound/campaign/GCbLHU4NFd">https://galxe.com/Unbound/campaign/GCbLHU4NFd</a>
Participation Rules:
<ol>
<li>The campaign will be hosted by Unbound on Galxe protocol.</li>
<li>A new set of tasks will be released each week, the details of which will be announced on Unbound’s social media channels, including <a href="https://twitter.com/unboundfinance">Twitter</a> and <a href="https://t.me/unboundfinance">Telegram</a>.</li>
<li>By successfully completing each week’s tasks, participants can mint their participation Galxe OAT. Note: To unlock tasks for the following week, individuals must hold the previous week’s participation OAT.
</li>
<li>Participants must complete all tasks from each campaign week to qualify for rewards. While individuals can join the campaign anytime, they must start from week 1 and complete all tasks.
</li>
<li>The final UNB rewards worth $5000 will be distributed by Unbound through a random generation process.</li>
<li>Winners will be announced, and rewards will be sent within 15 days after the campaign ends.</li>
</ol>
Disclaimer: All rewards will be directly sent to the participant’s ERC20 wallet address and confirmation will be necessary through a subsequent announcement. Unbound retains the right to discontinue or amend any activity or activity guidelines at our sole discretion.
Unbound V2 is poised to be a game-changer in the DeFi space, and the airdrop campaign is an exciting opportunity for the community to participate in this momentous occasion. By following the simple steps outlined in the campaign rules, participants can earn rewards while celebrating the launch of the Unbound V2 mainnet.
<h4>About Unbound Finance</h4>
Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better yield opportunities to improve the overall capital efficiency of the DeFi ecosystem. The platform lets Defi users lock in LP tokens to borrow Unbound’s native stablecoin, UND, at 0% interest rates. In its version 2, Unbound will enable users to collateralize concentrated liquidity positions of next-gen AMMs such as Uniswap V3 and LP tokens of volatile asset pools. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi Dexes and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound uses liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
<h4>Stay Tuned</h4>
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> | <a href="https://v2-testnet.unbound.finance/">V2 Testnet</a> | <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> |<a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a> | <a href="https://lenster.xyz/u/0xunbound">Lens</a>
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The Unbound V2 Mainnet Launch Airdrop Campaign is now Live!

<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*_L6IVwBvzkxqYXXlwylLdw.jpeg"></figure>On the 13th of January’23, Unbound Finance hosted an Ask Me Anything (AMA) session with Nishchal, CMO at DefiEdge. The AMA session provided an in-depth look into DefiEdge and its partnership with Unbound. Here’s a recap of the enlightening discussion.
Q. Nischal, please introduce yourself to our listeners and tell us more about your Defi journey.
A: Hello, everyone; I am Nishchal, CMO of DefiEdge. I come from a background in AI. I started working in the DeFi space last year. I have been a part of the Uniswap V3 community even before the testnet was launched. My article on Uniswap V3 also got published in Standford. Last year I met our founder, Tarun Jaswani, and it has been a great journey since then, learning and exploring Uniswap V3.
Q. Can you explain how Uniswap V3 works and how it differs from its previous versions to a naive crypto user?
A: AMMs are the king of DeFi at the moment, and the biggest king is Uniswap V3, with more than 1 trillion in volume. Usually, they make trade feasibility quite easy, and in the earlier version, XY = K, which is a constant product and market maker formula which allows transparent swaps driven by mathematical formulas rather than traditional forms or order book systems. What V3 does is rather than passive liquidity; it allows you to set your ranges more actively and create a concentrated liquidity position which allows more earning fees than just passively equal sharing based on your capital. One thing they introduced was capital efficiency, and the volume it has attracted is huge.
Q. How did the idea for building DefiEdge come about, and what problem of Uniswap V3 are you trying to address? Uniswap V2 didn’t have any optimization mechanism; why is it required for V3?
A: When you put in money, you need a percentage of return on top of it. With optimisation, you understand the market better, and we can find ranges where you want to put more chunking, as the returns are in the ratio to your investment. In V2, the ranges are minus infinity to plus infinity. This results in an imbalance between trading rate and liquidity, creating capital inefficiency. Hence, V3 came with a concept of itself where more specific liquidity is provided with better ranges which allows the opportunity to have capital gain more returns that opened a whole pandora’s box in terms of features.
Q. To quote from your docs, ‘DefiEdge allows anybody to create a strategy’. Would it be possible for anyone to create one?
A: To become a strategy manager, one must understand the DeFi space and the mechanics of Uniswap V3. A strategy manager does require some efficiency and experience, but with Defiedge, the platform gives features that anybody can become a strategy manager. DefiEdge comes at the core of this problem and how we can make strategy management and personal liquidity management very easy. Yes, DefiEdge being a permissionless protocol, anyone can become a strategy manager. But with other protocols, you might require some proficiency.
Q. How does the experience for a strategy manager from providing liquidity directly to the Uniswap V3 pools than providing it through DefiEdge?
A: The mechanics of Uniswap V3 is when you provide a position in Uniswap V3, you get an ERC 721, which is an NFT representing a position, and then you interact with different pools altogether. Then to create ease, a lot of protocols are working into it. For example, there are limit orders &amp; liquidity mining rewards, so there is a scattered experience all over the place that gets confined at Defiedge.
As I mentioned, ERC 721 representations are provided for adding liquidity, and we have made some native changes. We interact directly with the factory smart contract that shells up to 33% of the gas, and then you get DE shares. DE shares represent liquidity in terms of profit and the position assets that you are holding in an ERC 20 form which makes it more leverageable, whereas in the native Uniswap V3 platform, you don’t get these features.
In terms of features themselves, we provide multiple ranges, provide hooks to track your strategy on different platforms, and can have public and private strategies. There are also limit orders enabled. We have also recently partnered with chainlink automation, specifically as a partner on Arbitrum, and soon, we are going live on the Optimism part as well. That allows you to trigger these kinds of liquidity burns and manage your strategy.
I would request the community to try <a href="https://app.defiedge.io/">Defiedge</a> as we have got resources in documents to help you understand if you face any obstacle, you can come on discord itself. The community is loving it, giving us a compounding fuel that the more they love it and the more we want to work out.
Q. What are the benefits for liquidity providers at Defiedge?
A: As a Liquidity provider, there are two things they target: they want good returns on capital and the other they should understand the risk natively &amp; third, they should have sufficient actionable features if they want to manage things on their own. So Defiedge itself places itself around some pillars:
<ol>
<li>We have multiple ranges available within one strategy, and you can have different efficiency and risk management strategies.</li>
<li>Liquidity mining rewards are natively enabled on our platform, so the users do not have to collect the rewards elsewhere but on the platform itself.</li>
<li>They can have private strategy management and automated vaults and links; hence liquidity providers can have more control over liquidity if they wish to manage it themselves.</li>
</ol>
Because the beauty of Defiedge is it is not a centralized platform, it is a permissionless protocol where anyone can become a strategy manager and liquidity provider who has the huge power to manage himself. It is a little spoiler, but there are use cases where they can use their DE shares for other things also, which is going to compound their yields. Personal strategy management is something we will be pushing in the near future.
Q. Who do you see as your main competitors in the industry, and what sets DefiEdge apart from other Uniswap V3 optimization platforms?
A: We have Gamma and X-token as our competitors, but Defiedge sets itself apart by posing itself as a permissionless protocol and seeks for consumers to come and manage their own strategy and be linked to the community. It is a very community- platform, where community drives the product rather than efficiency to make higher yields. DefiEdge adapts to users’ needs and making it easy to understand and more educative. We are not just a hedge fund but a toolkit which can help you make money. We also believe in cooperation and collaboration rather than competition. Even our competitors can create strategies on our platform, and we’ll be happy to manage them.
Q. With more protocols improvising with V3 like Sushiswap &amp; Trader Joe, how scalable do you think DefiEdge is? and how does it plan to accommodate the growth and advancements in the decentralized exchange (DEX) space?
DefiEdge has seen much growth and advancement in the current version. We have native liquidity mining rewards built in. A great project is driven by great community feedback, and no protocol has cracked that yet because the community is every growing. Even the Defi space must be enabled with more infrastructure and resources. Whatever the need of the users is, that's how we are adaptive, so the current best way is for users are looking for something easy and solid to use, and that's where the focus of DefiEdge is.
For us, it's more about understanding the community, and we have started with Uniswap V3 because the problem is the biggest with the biggest volume. The current motto is to get more user adoption and current market fit rather than building constantly having tons of features. We are more focused on how users like those features and perceive them. Recently, our content has been towards making the features easy, understandable and educational for a user. In this bear market, at least, this is the building phase because volumes are down. When the bull market comes, we will look at what tool can be for adoption, and a protocol always has to adapt to flexibility.
Q. DefiEdge recently won the proposal of Optimism rewards vote on the Uniswap governance. How do you see this affecting the adoption of DefiEdge?
A: I think that’s a testament to the hard work that the DE team has put in. We have recently won awards from Uniswap governance itself. Our team has a huge motivation pump, and we are doing it, and the community is coming back and saying well done. When you make a great product, and the community can’t understand it, there is nothing worse than that and people come and say that it is something great. They love to use it, and this is going to bring a lot of users to us and we are focused on how to retain users once the rewards are over. There is a lot of stickiness to our platform, and we want to maintain that. There are more than 5000 votes on the proposal itself, and I want to congratulate the team, partners, and community this announces in the world space that Defiedge is there.
Q. How do you think the partnership between Unbound and DefiEdge will add value to the decentralized finance (DeFi) ecosystem?
A: Nishchal: The power of compounding is so huge that it’s difficult to perceive sometimes how it will be in the long run. DefiEdge and Unbound have opened the key to compounding, where DefiEdge users can collateralize the shares themselves and get loans based on top of it. They can also put those somewhere for the yields themselves. This compounding effect is the contagious viral effect. The viral factor that DefiEdge was missing, I think that Unbound has opened huge floodgates for us, and we are grateful for the partnership. This partnership takes compounding to a new level, and we are excited for the community to benefit from this.
Ragini: Once you provide liquidity to DE, they allot you DE shares which are in ERC 20 representations of the liquidity. It works like the LP tokens you get after providing liquidity to the Uniswap V2 pool. At Unbound, we will be collateralizing these DE shares, and Unbound is the first one to do that and allowing our users to borrow our native decentralized cross-chain stablecoin, which is UND. So this adds up to an enhanced level of liquidity and brings in overall capital efficiency. Through this partnership, we will be targeting the 4 billion liquidity that V3 has been holding, which is locked in V3.
About Unbound Finance Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better opportunities of yield to improve the overall capital efficiency of the DeFi ecosystem. The platform enables Defi users to borrow over-collateralized synthetic asset loans in the form of UND stablecoin by collateralizing liquidity pool tokens (LP tokens) and concentrated liquidity positions of next-gen AMMs such as Uniswap v3. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi DEXs and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound uses liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
Stay Tuned
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> | <a href="https://v2-testnet.unbound.finance/">V2 Testnet</a> | <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> |<a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a> | <a href="https://lenster.xyz/u/0xunbound">Lens</a>
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Unbound X DefiEdge AMA Recap

<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*NvFJREkdqD7Zpc6h"></figure>On the 14th of December 2022, Unbound Finance hosted an Ask Me Anything (AMA) session with independent security researcher Riley Holterhus. He is a well-known figure in the world of Web 3 security, having previously worked with Paradigm, SpearBitDao and code4rena. Riley has a reputation for discovering security vulnerabilities and helping organizations recover stolen funds. He is also the first to conduct an audit for the Unbound V2 smart contracts.
During the AMA, Riley discussed the results of his recent Unbound V2 security audit and Web 3 security. Below is a recap of the insightful AMA.
Q1) Riley, please introduce yourself, and tell us about your background and journey as a blockchain security auditor.
Hi everyone; I am Riley Holterhus. I have been in the smart contract security space for over a year. I got into space last October after hearing about an exploit that happened on a protocol. I instantly started to learn about the different opportunities that exist in the space and started working with Code Arena. It is a website where you can participate in decentralised audits and get paid based on the severity of bugs you find. Then I started to explore unified bug bounty hunting. Then I started doing independent audits and eventually worked at Paradigm in their security team. And then since then begin, in September started working more independently again. So I’ve done more independent auditing, which is where I am today.
Q2) Blockchain as a technology is known to be inherently secure, then what makes it so vulnerable?
There are two different aspects that people could be talking about when they refer to blockchain security. So one aspect is the actual blockchain itself. So, for example, back in September, we all know that Ethereum transitioned from PoW to PoS. And these are different senses mechanisms that have their security guarantees. These are things that are inherent to the blockchain itself. But at the same time, code lives on the blockchain. The problem is that there could be bugs in that code itself, and the blockchain’s security guarantees will help you with those bugs.
Bugs in the smart contract code itself are what the problem is. And because the space is new and Solidity as a programming language is relatively new, and the whole space is less than ten years old. That’s one aspect of why there are so many problems and whether problems happened in the past.
Q3) What is your approach to security Audits in web3?
There are lots of good tools that people use. The one that I like to use or just like that general class of approach is fuzzing, where you can provide the functions that would cause it to break and automatically go through different inputs and try to see if it would break. This function is the most automated tool that I use.
Other than that, I’m still traditional; I look at it like I like to just look through the code manually and try to find bugs that way. I still primarily rely on that because although there are lots of new tools and new things, I don’t think anyone expects them to catch everything. It’s still important to look through the code and use code that deeply. The automated tools are really good, like the first step. Tools help find very low-hanging fruit that is easy to catch. Even though they’re low hanging, they could cause problems if they weren’t caught at all. I mostly like to do auto-manual stuff, but different things like fuzzing and other promising areas are the formal verification area of research.
Q4) What kind of vulnerabilities/ attacks are most common in dapps?
One of the common bugs back in the day was re-entrancy. You can re-enter the contract, and maybe the state wasn’t updated so you can exploit that. This was a big problem, leading Ethereum to transition from the classic mainnet to the mainnet. There was a reentrancy bug in the DAO.
Oracle attacks primarily using flash loans. It is easier to manipulate the price of an asset in DeFi in spot trades. Exotic bugs can’t be classified into one category. But re-entrancy and flash loans are essential.
Q5) Can you share some findings you are proud of in your auditing journey so far?
I was once working with a protocol trying to find bugs with them &amp; found an interesting bug I didn’t realise there was. It was a bug where users had to collateralise a position, and every user had a debt. Eventually, that debt was reduced over time because of the yield they got in the position; ultimately, they were supposed to have credit. But the problem was that their credit was always set to the like to the difference. So, if they made $10 of credit since the last time the function was called, instead of adding 10 to the credit, it would just set their credit to 10, which is an issue. I was surprised that no one had caught it before because it was a fork of a much bigger protocol. So the reason I was pretty proud of this one is that I was able to submit the bug to like 45 different forks of this protocol and also able to use it in a Code Arena contest that still hadn’t realised that there was this bug.
Then I realised that this smart contract security space is relatively new because I came in and realised that this problem and I was still relatively new. There are a lot of opportunities to find these things. The other time I found a bug in the most prominent name protocol. It was a bug where someone could steal money from their periphery system. But the bug was simple. It was just you create a promotion, and then you don’t actually pay it, and then you get all your money back times two. And obviously, like it’s such a big problem, but it wasn’t super technical.
Q6) You recently completed the Unbound V2 smart contracts security audit. What are your thoughts?
It was fun to look through the Unbound contracts. All the bugs have been fixed, so to the best of my knowledge, there aren’t any bugs.
There was a common vulnerability that had happened before that Unbound was aware of. It’s related to the LP token pricing. The naive solution for doing this is to use the arithmetic mean of the token prices of the LP position. So, if your LP position is between ETH and USDC, it makes sense to take the amount of USDC and the amount of ETH in the pool and then take your proportion of that. Then someone can just manually send one token to your protocol and cause it to revert.
Some protocols might think this is never an issue because you can’t possibly send ETH to some contracts that don’t have a payable function or like receive function. But there are other ways to get around this way; you can, like, manually send ether smart contracts, and it’s even easier if you just.
Another issue is to ensure that the yield farming rewards allocation is fair. So if someone deposits some collateral and that collateral is used in a yield farm.
It should always be the case that they get their proportion of the rewards. So if you deposit like $1000 and then you eventually acquire like $100 worth of rewards, and then someone else like afterwards rewards someone else deposits, they should never get access to those $100 of rewards that you generated alone with your collateral. And there was a slight change in the code that needed to be made for that to happen.
But now, obviously, the Unbound V2 code has that modified. So the rewards should be fairer.
Q7) What are the to-dos in Do Your Own Research to avoid risks in DeFi?
Firstly, many protocols don’t even do audits at all, and I think that’s a pretty big red flag. Another thing is whether or not the protocol had a bug bounty. I think it’s a pretty good signal of if they care about security.
The second thing to check is how much centralization the protocol has or if they have plans to move away from that centralization. No protocol should be extremely central or centralised in that it can take everyone’s money, which has been a problem before. People usually call them rug pulls, where someone can easily just take all the tokens from the particle for their own and never give them back. That’s a bad thing.
Another thing, I guess, is related to the audit point if the protocol is a fork of another protocol. I think it’s almost as if like the security guarantees of the other protocol are inherited. So keeping in mind which fork each protocol is of each other might be something to keep in mind just to ensure that if a bug happens in the protocol, then that protocol fork or downstream is another protocol. Keep in mind that there could be bugs in both of them. Those are some DYOR things I would keep in mind when interacting with DeFi protocols.
Q8) In terms of security, how does Web 3 differ from Web 2?
Starting by one thing is that this space is very new, which is one part of why Web 3 security is so different. There are more people expect in bugs because Solidity has only been around for six years, which is not very long. As a result, people are still getting used to these new programming paradigms.
One other thing I would say that is different from Web 2 security is that if there’s a bug in the code, it’s a lot less likely to steal money directly. Another thing is that Web 3 has a lower barrier to entry where anyone can have their private key and then send transactions on the blockchain, which is relatively easy. But this barrier to entry also benefits hackers as well. So if you’re a hacker, you can make a new address, fund it with tornado cash and steal the money. You can send it back through tornado cash. So it’s easy to like lose the trail if you do. Getting away with the crime will be more challenging if you steal the money.
And one other thing is in Web 3, it’s more expected that the code is open-sourced and that you can read it. For instance, on Etherscan, they can verify smart contracts. So in Web 3, it’s a lot easier to get access to the source code to see if there are bugs in particular not working; you might need access to the source code in absolute, like decompiling yourself.
And one final thing is that in Web 3, even if you find a bug before any person finds it, it’s not even obvious to fix it. One of the problems in Web 3 is the code is expected to be immutable. So if you find a bug only way to fix the bug is to exploit it yourself, known as White hat hacking. It is kind of a crazy concept, but it started where we are, and that’s another difference between Web 3 and Web 2.
Q9) Community audits are getting popular nowadays. What are your thoughts on it? Would you recommend projects to go for community audits?
I think community audits are really good, but they have pros and cons.
Well, first of all, my anecdote is there were a couple of times was a community audit went head to head with other auditing firms and most of the time, I think all the time, and I’m mostly just talking about Code Arena. That’s the main community audit platform.
But usually, the community audit incentives have been much more significant. One example in thinking of his Open Sea had a contest where $1,000,000 was rewarded for a high-severity bug.
And although several other auditing companies have already looked at the Seaport code, some high severity bug was identified. So this is one anecdote on how a Community audit can be better just because the incentives are aligned differently.
But that being said, I think one con to the Community approach is that the review for the mitigations that are found, the medications for the bug that are found in the contest or not reviewed very closely; this sort of the nature of competition works. There’s a week period where people look for bugs, and then you can’t fix the bugs as they are submitting them because everyone should have a chance to submit them throughout the entire week.
So as a result, sometimes the protocol has gone through a Coat Arena on it, and they find lots of bugs, which is great. But they make some mitigations to the protocol, and as a result, there could be new bugs that are introduced that have yet to be like that for the audit.
And this is usually addressed in a traditional security audit, where they look through the mitigations and ensure that everything is implemented correctly. That’s the biggest con to the approach, and I used to keep this in mind and look through some of the Code Arena reports and see if any of the bugs were incorrect. To ensure that their mitigation was implemented correctly and more than once, the protocol has to do more high-severity findings in the mitigations review than in the original review.
About Unbound Finance Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better opportunities of yield to improve the overall capital efficiency of the DeFi ecosystem. The platform enables Defi users to borrow over-collateralized synthetic asset loans in the form of UND stablecoin by collateralizing liquidity pool tokens (LP tokens) and concentrated liquidity positions of next-gen AMMs such as Uniswap v3. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi DEXs and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound uses liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
Stay Tuned
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> | <a href="https://v2-testnet.unbound.finance/">V2 Testnet</a> | <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> |<a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a> | <a href="https://lenster.xyz/u/0xunbound">Lens</a>
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AMA with Riley Holterhus Recap

<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*Dd_IJcGIetIdTtHX"></figure>Unbound is a decentralized lending protocol that offers interest-free stablecoin loans against interest-bearing crypto assets as collateral. Despite being deposited at Unbound, the collateralized assets continue to accrue fees while unlocking additional value in the form of UND stablecoin.
The Unbound ecosystem is powered by two tokens, UND, the protocol’s native stablecoin and UNB, its governance token.
<h4>UND — The Decentralized Stablecoin</h4>
Unbound’s first flagship product is UND, a decentralized stablecoin pegged 1:1 with the US dollar. It is an ERC-20 token backed by over-collateralized digital assets, typically interest-bearing tokens such as LP tokens. Users can generate UND by locking up collateral in the platform’s smart contracts that exceed the value of the borrowed UND by a predetermined ratio. The surplus collateral serves as a cushion, buffering the token from the downward price movement of the assets supporting it.
Characterised by a no-liquidation feature, Unbound V1 enabled users to leverage stablecoin LP tokens to borrow UND, while arbitrageurs in AMMs kept UND’s price in line with its peg.
With Unbound V2, the protocol will accept all kinds of liquidity spread across various DEXs, including LP tokens of volatile asset pools and wrapped positions of Concentrated Liquidity Market Makers (CLMM) like Uniswap V3. To ensure a stable peg for UND against the volatility of the newly supported collateral assets, the protocol, in its latest iteration, has introduced improved price stability mechanisms like liquidation and redemption.
While liquidation keeps UND over-collateralized, redemption ensures the token’s market price stays closest to $1 at all times. The UND returned as a result of loan repayment, liquidation, or redemption is burned and removed from circulation.
UND, true to its race, can be put to multiple use cases. It can be used
<ul>
<li>as a form of payment</li>
<li>to trade, transfer or HODL</li>
<li>to earn passive income by providing liquidity to the <a href="https://www.unbound.finance/token">UND pools</a>
</li>
<li>as leverage on other DeFi platforms</li>
<li>as a safe haven in the world of volatility</li>
</ul>
<h4>UNB — The Governance Token</h4>
Unbound aims to achieve absolute decentralization through its Decentralized Autonomous Organization (DAO). As the governance token of Unbound, UNB empowers the community to participate in the Unbound DAO and vote on protocol policies and changes.
Upon the launch of the DAO, UNB holders will be responsible for making protocol-related decisions like whitelisting new collateral types, determining and adjusting risk parameters such as minimum collateral ratios of new and existing collateral types, modifying parameters that affect the borrowing rate and redemption fee and setting the global borrowing cap for each Unbound vault.
As with any other cryptocurrency, UNB can be swapped, exchanged, or traded. Users can maximize the yield on their UNB holdings by adding liquidity to the <a href="https://www.unbound.finance/token">UNB pools</a> or earn additional UNB rewards by participating in various on-chain and off-chain staking initiatives launched by the protocol.
<h4>About Unbound Finance</h4>
Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better opportunities of yield to improve the overall capital efficiency of the DeFi ecosystem. The platform enables DeFi users to borrow over-collateralized synthetic asset loans in the form of UND stablecoin by collateralizing liquidity pool tokens (LP tokens) and concentrated liquidity positions of next-gen AMMs such as Uniswap v3. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi DEXs and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound makes use of liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap, and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
Stay Tuned
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> | <a href="https://v2-testnet.unbound.finance/">V2 Testnet</a> | <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> |<a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a>
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UNB-o-UND

<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*626C2IoMhCXqcvS7"></figure>Unbound is a decentralized, permissionless, cross-chain protocol that creates capital efficiency by allowing liquidity providers on various decentralized exchanges (DEXs) to use their liquidity provider tokens (LPTs) as collateral to mint UND, our USD-pegged stablecoin.
The primary characteristic of a stablecoin is to, quite obviously, maintain a stable value denominated in USD (in our case). Maintaining this stable peg is easier said than done. While Unbound V2 is designed in such a way as always to be over-collateralized, the exact market price of stablecoins can also experience volatility during periods of market turmoil. To address this issue, in Unbound V2, we have introduced redemptions.
<h4>What are redemptions?</h4>
In Unbound V2, redemptions serve as a mechanism for price stability. Through the redemption process, users can exchange their UND for an equivalent value of the underlying collateral. The protocol will always value UND at $1, irrespective of the price in the market. Therefore, if a user burns U amount of UND, they will receive collateral (LPTs) worth U dollars (minus the redemption fee). For example, assume the redemption fee is currently 2%, and the price of the underlying X LPT is $10. If a redeemer deposits 100 UND, they will receive 9.8 X tokens (98% of 100/10).
Redemptions ensure the market price never falls too far below $1. This mechanism utilizes free market dynamics to ensure the price. “How?“ If the market price of UND falls below $1, say $0.95, then a redeemer can buy UND from the open market to redeem collateral worth $1 (minus fees). They can then sell this collateral for $1 and make a profit. So, if the effective buying price of UND were $0.95 and the redeemer received $0.98 worth of collateral, they would make a profit of $0.03 for every UND that was redeemed. As more and more UND gets redeemed, its supply in the open market reduces, bringing its price back up.
<h4>Which collateral?</h4>
The redeemed collateral will come from the trove of the depositor, who has the lowest collateralization ratio (CR). Unlike a liquidation event, redemption does not cause any financial loss for this trove. The value of the collateral the trove forgoes equals the amount of debt (in UND) repaid. The process also increases the CR ratio of this trove, making their position healthier.
We expect redemptions to be rare events with small ticket sizes. The $1 market value is the focal point for this system. Minor deviations in the market prices will trigger enough redemptions to bring the price back up before we start seeing any significant volatility in the price of UND. A stable market price will make UND a valuable token for retail users to hold during market volatility while also allowing borrowers to increase their capital efficiency and leverage their liquidity positions.
<h4>About Unbound Finance</h4>
Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better opportunities of yield with a view to improving the overall capital efficiency of the DeFi ecosystem. The platform enables DeFi users to borrow over-collateralized synthetic asset loans in the form of UND stablecoin by collateralizing liquidity pool tokens (LP tokens) and concentrated liquidity positions of next-gen AMMs such as Uniswap v3. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi DEXs and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound uses liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Curve, Trader Joe, SushiSwap and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols to use concentrated liquidity positions as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
<h4>Stay Tuned</h4>
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> | <a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> | <a href="https://v2-testnet.unbound.finance/">V2 Testnet</a>
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Understanding Redemptions on Unbound V2

<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*WR72y2mgNy4Q2nut"></figure>Unbound Finance is a decentralized, lending protocol that enables DeFi users to borrow over-collateralized synthetic asset loans. These loans are provided against liquidity pool (LP) tokens as collaterals. In Unbound V1, we accepted only stable pair LP tokens and provided a perpetual no-liquidation loan with 0% interest. While this worked great for stable pair tokens, it did not allow us to support pools formed by volatile tokens like WETH, WBTC, etc.
With Unbound V2, we will introduce support for LP tokens of volatile asset pools like WETH-DAI and WBTC-USDC. To support these pools, we need to introduce a mechanism for liquidations, as the value of these tokens is obviously volatile. The protocol needs to ensure that the supply of our stablecoin $UND is always supported by a more significant value of the collateral. This does not ameliorate the use case for stablecoin LP tokens. Stablecoin LP tokens will only increase in value as they accumulate fees; therefore, these users never have to worry about liquidations.
Whenever the value of a borrower’s collateral falls below the minimum collateralization ratio (MCR), their account is open for liquidation. Anyone can trigger this function by repaying the total borrowed UND. The liquidator will then receive the entirety of the collateral. As the MCR will always be greater than 100%, the liquidator will receive collateral worth more than UND provided, which they can sell to make a profit.
For example, for a loan of 250 UND drawn against $500 worth of collateral, the CR calculates to 200%. For an MCR of 110%, the borrower gets liquidated if their collateral value drops below $275 (around a 45% drop).
These market incentives will ensure that UND is always over-collateralized and maintains a stable value against the USD. This enables the use of UND as a means to leverage positions in liquidity pools but also as a stable store of value during volatile markets.
<h4>About Unbound Finance</h4>
Unbound Finance is a novel, non-custodial lending platform driven towards enabling newer and better opportunities of yield with a view to improving the overall capital efficiency of the DeFi ecosystem. The platform enables DeFi users to borrow over-collateralized synthetic asset loans in the form of UND stablecoin by collateralizing liquidity pool tokens (LP tokens) and concentrated liquidity positions of next-gen AMMs such as Uniswap v3. Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi DEXs and to enable the easy flow of this liquidity from one chain to another without actually removing it.
The key highlights of the protocol are as follows:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound makes use of liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap, and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
<h4>Stay Tuned</h4>
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> | <a href="https://v2-testnet.unbound.finance/">V2 Testnet</a> | <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> |<a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a>
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When do you get liquidated on Unbound V2?

<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*nMbMxOvsiepaFerQ"></figure>Unbound V2 is designed to be a novel decentralized lending platform that will allow users to borrow interest-free stablecoin loans against interest-bearing crypto assets as collateral. The Unbound V2 smart contract generates UND, a USD-pegged stablecoin, against user-supplied collateral assets, typically liquidity provider tokens (LPTs) and wrapped positions of Uniswap V3 like Concentrated Liquidity Market Makers (CLMM).
In the <a href="https://unboundfinance.medium.com/what-is-unbound-v2-8f562dffe815">last article</a>, we introduced the community to Unbound V2 highlighting its new features and improvements over the existing protocol. Now let us take a deep dive into how borrowing works on Unbound V2.
<h4>Vault-Based Borrowing</h4>
Borrowing at Unbound V2 is Vault based. Each collateral type is associated with a unique vault. A user can borrow UND by depositing collateral into one or more Unbound Vaults. For example, a user may borrow UND by depositing Sushiswap’s WETH-DAI LP tokens as collateral in the corresponding vault. Additionally, the user can supply collateral to the USDC-USDT vault to generate more UND. The borrowing parameters may differ across vaults and are dynamically changing. Initially, these parameters will be set by the protocol but can be later changed by the holders of the UNB platform governance token, through voting upon the launch of the Unbound DAO.
<h4>Over-collateralized UND loans</h4>
Unbound V2 requires borrowers to deposit collateral higher than the value of their borrowed UND. The excess collateral will ensure that the circulating supply of UND is always over-collateralized and serve as a buffer against market volatility. At each borrowing instance, Unbound’s factory smart contracts calculate the Collateralization Ratio (CR), which determines the percentage of the collateral backing the loan and is given by the formula:
CR= (C/L)*100
Where C -Amount of collateral deposited in USD
L- Amount of UND borrowed
For example, for a loan of 250 UND drawn against $500 worth of collateral, the CR calculates to 200%.
The maximum amount of UND borrowed against a set amount of collateral depends upon the Minimum Collateral Ratio (MCR) of each Unbound vault. Users can borrow UND while maintaining a CR up to but not less than the MCR of the corresponding vault i.e CR&gt;=MCR. For instance, for an Unbound Vault with an MCR of 110%, users can borrow UND such that the CR is greater than or equal to 110%.
It is important to note that loan positions with a Collateralization Ratio less than the Minimum Collateral Ratio will be eligible for <a href="https://wiki.unbound.finance/#liquidation">liquidation</a>. For this reason, users must maintain a healthy CR to prevent their positions from getting liquidated.
<h4>Borrowing fee</h4>
Unbound V2, like V1, charges no interest on UND loans. However, the protocol does charge a one-time borrowing fee each time a user borrows UND from the platform. The borrowing fee gets added to the outstanding user debt and must be paid at the time of loan repayment to unlock the underlying collateral.
Consider the example where a user borrows 200 UND by collateralizing LP tokens worth $500. Assuming the borrowing fee rate to be 0.5%, a borrowing fee of 1 UND (0.5% *500) will be charged by the protocol to the user. Thus, to unlock the entire collateral, the user must repay 201 (200+1) UND.
The borrowing fee rate is set to be variable. The rate can range from 0.5% to 5%, depending on the base rate and the amount of UND borrowed, and is calculated using the formula:
Borrowing fee = (baseRate + 0.5%)* UNDdebt
Where the base rate is a variable that increments with each redemption and decays with the time passed since the last fee event (last redemption or last issuance of UND). At the system launch, the base rate will be initialised to 0%.
For this article, we will not go into the details of redemption but you can refer to our whitepaper <a href="https://wiki.unbound.finance/">here</a> for more information.
You can use the Unbound V2 testnet <a href="https://t.co/4XMqq8zKro">here</a> to get a better understanding of borrowing and other platform functionalities. Refer to our step-by-step guides below for a smooth Testnet experience.
<h4>Unbound V2 Guides:</h4>
How to Create a Smart Account, Borrow and Repay UND: <a href="https://unboundfinance.medium.com/how-to-create-a-smart-account-borrow-and-repay-und-on-the-unbound-v2-testnet-514287c91371">https://unboundfinance.medium.com/how-to-create-a-smart-account-borrow-and-repay-und-on-the-unbound-v2-testnet-514287c91371</a>
How to Deposit and Withdraw Collateral: <a href="https://unboundfinance.medium.com/how-to-deposit-and-withdraw-collateral-on-the-unbound-v2-testnet-c845ddb80699?postPublishedType=initial">https://unboundfinance.medium.com/how-to-deposit-and-withdraw-collateral-on-the-unbound-v2-testnet-c845ddb80699?postPublishedType=initial</a>
How to Liquidate Account(s) and Redeem UND: <a href="https://unboundfinance.medium.com/how-to-liquidate-account-s-and-redeem-und-on-the-unbound-v2-testnet-6b428b4c793f">https://unboundfinance.medium.com/how-to-liquidate-account-s-and-redeem-und-on-the-unbound-v2-testnet-6b428b4c793f</a>
<h4>About Unbound Finance</h4>
Unbound Finance is a novel, non-custodial lending platform, driven towards enabling newer and better opportunities of yield with a view to improving the overall capital efficiency of the DeFi ecosystem. The platform enables DeFi users to borrow over-collateralized synthetic asset loans in the form of UND stablecoin by collateralizing liquidity pool tokens (LP tokens) and concentrated liquidity positions of next-gen AMMs such as Uniswap v3.
Through synthetic assets like UND stablecoin, Unbound aims to unlock the liquidity available in DeFi DEXs and to enable the easy flow of this liquidity from one chain to another without actually removing it.
Key protocol highlights:
<ul>
<li>
Interest-free borrowing: Unbound does not charge any interest on the borrowed UND.</li>
<li>
Perpetual borrowing: At Unbound, borrowers have unlimited maturities. Users can unlock the underlying collateral at any time by simply paying off the outstanding debt.</li>
<li>
Stablecoin UND: UND is the first flagship product of the Unbound protocol. It is a decentralized, cross-chain stablecoin designed to be native to the AMM space.</li>
<li>
Factory Smart Contracts: Unbound makes use of liquidity lock contracts that are permissionless and support EVM-based AMMs like Uniswap, Balancer, Curve, SushiSwap and the like.</li>
<li>
Collateralizing concentrated liquidity positions: Unbound is one of the first protocols that allows concentrated liquidity positions to be used as collateral for borrowing synthetic crypto assets such as UND stablecoin.</li>
</ul>
<h4>Stay Tuned</h4>
<a href="https://unbound.finance/">Website</a> |<a href="https://twitter.com/unboundfinance"> Twitter</a> | <a href="http://wiki.unbound.finance/">Unbound V2 Whitepaper</a> |<a href="https://v2-testnet.unbound.finance/"> V2 Testnet </a>| <a href="https://t.me/unboundfinance">Telegram</a> | <a href="https://unboundfinance.medium.com/">Medium</a> | <a href="https://t.me/UnboundAnnouncements">Telegram Announcement Channel</a>
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BORROW

Leverage your locked liquidity on decentralized exchanges to borrow UND stablecoin

FARM

Auto staking of collateralized assets to enable boosted yield for users

EARN

Earn rewards by providing liquidity to the UND pools

UNLOCK

Unlock LP tokens by returning the interest-free loan

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