Project Insight: UniFi

What is UNIFI Protocol?

UniFi Protocol is a decentralized autonomous organization (DAO) governed via the $UNFI governance token. UniFi grew its awareness through partnerships with the Binance Launch Pool, PancakeSwap, and more.

UniFi Protocol DAO consists of non-custodial, interoperable, decentralized, and multi-chain smart contracts providing the building blocks for the next generation of Decentralized Finance (DeFi) development.  

The UniFi protocol was created by the team of SESAMESEED, which started in April 2018, so they bring a lot of expertise to the UNIFI project. Specifically, the multi-chain aspects, like the “SEED BRIDGE.”

UniFi provides a bridge to connect the existing economy of Ethereum based DeFi products to competing blockchains. At the moment, UniFi is present on the following blockchains: Ethereum, Tron, Ontology, Harmony, Icon, IoTex, Polygon, and Binance Smart Chain.

The UniFi Protocol is designed to provide developers with functional DeFi building blocks linking multiple blockchains together into one sizeable DeFi marketplace.

uTrade is the official UniFi Protocol trading platform or Automated Market Maker (AMM) using its users’ liquidity. Liquidity providers share a portion of the revenue generated by the entire UniFi Protocol and are not limited to a share of fees earned solely from a specific trading pair. Traders are refunded a portion of their trading fees in SEED token, which compounds and grows in value over time. uTrade is the only platform to offer a trading rebate, which automatically stakes on multiple blockchains and earns increasing rewards.

UniFi utilizes its “seed bridge” to connect to EVM/NVM-based DeFi products to any compatible blockchain. UniFi Protocol features liquidity pooling, a fee-sharing governance token, loyalty rewards token, lending platform, and cross-chain swap interoperability. 

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UNFI Token

UNFI serves as the primary protocol and global governance token. With this token, you can obtain rewards for staking, delegate to elect representatives for the DAO, and receive rebates for it.

It is the first sustainable DeFi token to incorporate Proof of Stake (POS) elements into its representative DAO governance model.

$UNFI is the public face of the UniFi Protocol listed on major exchanges like Binance, HBTC, and Bibox, to name a few. Currently, the $UNFI token trades for around $11 and has a market capitalization around $53 Million.

Currently, the protocol is home to a total of 327 LP pools with a sum of $23.2 Million total volume locked. 

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UP (Unlimited Potential) Liquidity Mining Token

$UP is the blockchain-specific liquidity mining token of the UniFi Protocol. On uTrade, liquidity providers earn a portion of trading fees from every trade in every pair.

Each blockchain where UniFi Protocol operates will have a designated base token in which fees and revenue are collected. These will be ONG on Ontology, ONE on Harmony, TRX on Tron, ETH on Ethereum, and of course, BNB Token for Binance Smart Chain.

$UP minting occurs in direct proportion to the fees and revenue generated by the entire UniFi protocol. This revenue generation includes designated fees or revenue from all UniFi developed platforms and any projects developed by others that utilize the UniFi protocol. The minting process is designed to ensure the redemption value of all $UP tokens must go $UP every time a new $UP token is minted. 

The $UP token creates a unique and lucrative rewards structure for all holders, protocol users, and liquidity providers. Even after liquidity is withdrawn, liquidity providers continue to share in fees as long as they hold UP tokens.

As you can see, Yield Farming is built right into the UP token.

SEED

UniFi will bridge the economy of Ethereum based DeFi products to the growing DeFi markets on other blockchains.

SEED is a multi-chain token backed by an increasing redemption value generated by SesameSeed’s blockchain node rewards. SEED has the unique property of being equal on all represented blockchains, enabling cross-chain swaps utilizing SEED as a unique utility token.

SEED is a representation of the rewards created through community participation across all blockchains it operates. SEED can be exchanged at any time for its pegged value. Holding SEED earns more SEED every day.

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uLEND

uLEND is another excellent product by the UniFi Protocol. Using the SEED Bridge, it is possible to take out a loan collateralized in one blockchain and use the resulting funds in another. This tool could be handy for some people as they could do cross-chain trading, margin trade, and other metrics.

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Concluding Thoughts

The UniFi project has a lot to offer between their cross-chain integration, lending platform, staking, and various tokens. The fact that you can earn and stack SEED as a rebate to every trade is impressive. The UP token also promises to accrue a lot of value over time. It will give governance rights in the future, as its name suggests UNLIMITED POTENTIAL, which can be said about the whole project. Bridging across many chains will undoubtedly be very useful for many users and projects. This “unify's” all projects on all chains, promoting a great user experience. It should bring new users to those chains, and people can choose the chain that works best and offers the lowest tx fees and time.

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