Unbound Finance V2 Upgrade — Unleashing Arbitrum Liquidity Potential
Hey Blockchain Citizens! Today I introduce you to Unbound Finance’s V2, which is going Live on April 11th.
You will also see why upcoming upgrade will speed up and strengthen Arbitrum adoption as a Layer 2 solution. Let’s dive into it!
What is Unbound Finance protocol?
First, let’s see what Unbound Protocol is. It’s a multi chain swap and interest free loan service. It operates on: BSC, ETH, Polygon, Fantom and Avalanche networks and with V2 upgrade on Arbitrum.
Protocol emits 2 tokens. $UNB is a native governance token and $UND is stablecoin, which you can mint for collateral.
What problem does Unbound V2 solve?
Unbound Finance unleashes the potential of unused Arbitrum liquidity. How? By enabling Liquidity Pool Tokens V3 (LPTV3) as a collateral for UND (Unbound Dollar) interest free loans. Imagine you have a LPTV3. It represents a value of Liquidity Pool share. You will be able to use LPTV3 as an equity token to take UND loans via Unbound Dapp on Arbitrum L2.
What are Liquidity Pool Tokens?
LPT’s are crucial part of AMM mechanism. By providing cryptocurrency pair to Liquidity Pool you allow other users swap these tokens in this Liquidity Pool. By doing so you earn passive income (in fees) for every swap. Be aware, that it exposes liquidity provider to Impermanent Loss. Providing liquidity for stablecoins is least risky, this is why I focus on them.
How to access Unbound Finance Dapp?
Connect your decentralized wallet on one of supported network to Unbound Finance Dapp — it’s here. You can mint UND by providing LPT tokens.
Having already DAI-USDC LPT (in this case it’s QuickSwap’s) you can provide it to Unbound Finance Dapp and mint $UND — Unbound Dollar.
How much liquidity waits to be unbounded
According to DefiLlama Arbitrum’s Total Value Locked (TVL) at the moment of writing this article is 3B and it’s at all time high. Uniswap’s V3 share is around 9%.
There’s 280mln TVL on Uniswap protocol. It is around 7% of all Uniswap TVL, but this is about to grow as L2 solutions are becoming more and more adopted by Ethereum network users.
Summary
I expect TVL in Unbound Finance to grow significantly in coming months.
Unlocking V3 liquidity potential will speed up Arbitrum adoption and pool migration from unsupported protocols and ETH mainnet.
Unbound Finance socials:
Twitter: https://www.unbound.finance
Telegram: https://t.me/unboundfinance
Website: https://www.unbound.finance
Medium: https://unboundfinance.medium.com
This article is for educational purpose only. It’s not an investment advice. DYOR!
