Deep Diving into UniLend Flash-Loans
TL;DR
- UniLend’s flash loans will support all tokens, unlike various other popular products that only support 20 to 30 assets.
- 70% of the fees collected from our flash loans will be distributed as staking rewards
- Our flash loans will support new innovative token technologies such as elastic tokens and synthetic assets
- UniLend’s Automated Staking Rewards pool will maintain a more uniform reward distribution across multiple blockchains
- Our “Airdrop” feature will allow anyone to instantly airdrop tokens to all pool participants
UniLend has the key in the ignition; everyone should buckle up as we cross the threshold of a new technological age. No one can stop you from taking what we build and using it to experiment with future DeFi strategies.
Recently we announced that UniLend’s iteration of permissionless flash loans were on the way. This caught the attention of our community, and many are asking for more information about how our flash loans will be more cost efficient and advantageous compared to current alternatives.
Today, we’ll fill in the rest of the puzzle pieces and share a little more about the technical aspects and benefits of our revolutionary flash loans iteration. If you’re excited, you should be! There’s a lot more to the story so keep reading.
Outlining Our Exciting New Flash Loan Functions
You’re probably wondering how you’ll benefit from being part of our technological shift. There are four main functions of our flash loans, most of which users will be able to participate in and benefit from.
- The first option allows users to provide liquidity to staking pools, this will be named “Deposit”.
2. Our second option, “Reward”, will allow projects & users alike to add rewards for all liquidity providers. These may be staking or token rewards from a platform/protocol or any other type of reward individuals wish to provide. These rewards are distributed through the Automated Staking Rewards pool.
3. The next function is “Airdrop”, which is an exciting new feature that will allow anyone to instantly airdrop tokens to all the pool participants. The allocation of these airdropped tokens are based on the users’ staked liquidity at that specific time. We’re sure you can think of many beneficial ways for this function to be tied into our platform.
4. Lastly, there will be a function available for the withdrawing of liquidity, called “Withdraw”.
How UniLend is Facilitating the Evolution of Flash Loans
One unfortunate aspect of previous iterations of flash loans has always been that these older protocols were only able to offer users flash loans in a limited array because their protocol only supports limited tokens. UniLend, however, is truly permissionless. This means we’re able to unlock flash loans functionality for every token on the market.
We’ll give our users the ability to take a flash loan using 6000+ assets on the market, unlike our main competitors who only give access to 20 to 30 assets. As long as there’s liquidity, UniLend users will be able to utilize flash loans with any asset for new and unimagined use cases. Furthermore, users can opt to have their liquidity staked on our platform to be used for flash loans.
Staking has become increasingly relevant for projects in the past couple of years. Some projects offer stakers benefits including staking rewards, subscriptions and even early access to new tokens on their platform. Although traditionally staking locks users’ capital within staking contracts, stakers will now have more flexibility with UniLend.
Our iteration of flash loans not only puts staked tokens on our platform to use, but also adds another reward/revenue stream for stakers by allowing them to benefit from a portion of the fees generated from flash loans.
When this happens, users will receive their portion of 70% of the fees generated from the usage of our flash loans. These rewards will be distributed based on each user’s pool percentage. The other 30% of the fees will benefit unilend community, though our community will need to wait for more information about this topic, which is coming soon!
Greater Efficiency & Rewards
As we’ve stated before, our flash loans will be more gas efficient which will allow for more cost-effective DeFi strategies. For example, users will now be able to create more lucrative flash loan arbitrage trades on Ethereum. In addition, our protocol provides zero-risk to liquidity providers due to the atomic nature of our flash loans.
Furthermore, UniLend will support innovative new token technologies such as elastic tokens and synthetic assets because of its permissionless nature. This means a much broader spectrum of use cases, and thus a greater demand for our tech stack and token.
A significant proportion of the fees generated by our flash loan transactions will be distributed to the depositors, meaning a more lucrative opportunity for stakers to our flash loan liquidity pools — everyday users and projects alike.
We’re also proud to announce our Automated Staking Rewards pool, a new concept which is the first of its kind. The ASR pool calculates staking rewards per second with rewards decreasing every second. This not only simplifies the staking rewards distribution process but also creates the opportunity for anyone to contribute to the pool without any complexity.
Calculations are completed every second, instead of every block, to maintain a more uniform reward distribution across multiple blockchains.
Our Permissionless & Interoperable Future
As you may have noticed, UniLend is continuing to push the boundaries of the traditional DeFi tech stack. The future we’re building is not only for whales but for the everyday user. With our permissionless and interoperable protocol, we’ll soon be able to provide opportunities for every token and every token holder.
UniLend’s mission to unlock the true potential of decentralized finance is quickly materializing. We’ve been working on our flash loans functionality in stealth, though soon they will be enabled on mainnet and fully functional for anyone to utilize.
If you’re interested in contributing to this conversation then please stop by any of our social platforms and say hello. We have a lively and rapidly growing community of DeFi enthusiasts all ready for the future of decentralized finance.
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