DeFi Dissected: UniLend Finance Taking the Uniswap DeFi Revolution to the Next Level
- Our DeFi Dissected article series aims to inform the DeFi community at large of the strengths of UniLend by comparing it with other great DeFi protocols. Today we’ll look at the undisputed leading DEX, Uniswap.
- Both UniLend and Uniswap offer a community governance mechanism.
- UniLend and Uniswap offer permissionless listing for assets, and have spot trading functionality.
- UniLend is a permissionless decentralized money market (incorporating lending and borrowing) and exchange, whereas Uniswap functions solely as a permissionless decentralized exchange.
At Unilend we know that DeFi can be daunting at times, especially since it’s such a new field that is constantly expanding at a very rapid pace. The DeFi Dissected series was created for the very purpose of guiding people through this ambiguous new field and giving them insights on the value proposition of the many projects within it. We do this by unpacking the details of leading DeFi protocols and comparing them to our platform, UniLend. We are certain that this series can help everyone better understand DeFi and reduce some of the ambiguity revolving around this space.
Please understand that we highly respect Uniswap for being the DeFi trailblazers that they are. For the record, we made sure Uniswap was one of the first DEXs we provided liquidity to, because the DEX has such a large reach. We would also like to give a shout out to the amazing Uniswap community for being trailblazers in their own right, and we hope they’ll recognize how we wish to advance the evolution of DeFi alongside Uniswap.
UniLend and Uniswap Compared
If you were to take a side by side look at the websites of UniLend and Uniswap, it will not take long for you to realise just how distinctive these two platforms truly are. After all, Uniswap is exclusively a decentralized exchange, whereas UniLend is a decentralized money market, which also comes with a decentralized exchange integrated into it.
UniLend places a huge emphasis on being a platform that allows people to borrow and lend any ERC-20 asset. However, as the leading DEX, Uniswap does not offer any borrowing or lending services. By enabling people to borrow, lend and trade all on one convenient platform, UniLend is creating a level of convenience that many people in DeFi are looking forward to.
Uniswap is limited by its sole restriction to the Ethereum blockchain. On Uniswap people cannot list or utilize tokens from other blockchains, because it is not interoperable. UniLend does not intend on being restricted to just Ethereum blockchain, and ERC-20 tokens. UniLend is actively considering Interoperability, which will allow our users to access far more cryptocurrencies in this space, because it will allow us to have access to multiple blockchains and all their respective tokens on one convenient platform.
Similarities Between UniLend and Uniswap
Certain aspects of UniLend are inspired by Uniswap, which is why the two platforms do have some similarities. One of the aspects the two platforms have in common is a community governance mechanism, designed to enable the respective communities to have a voice over updates to each protocol.
The second and main aspect that both platforms will have in common is permissionless listing. Permissionless listing allows anyone to list whichever token they please onto a platform, without having to receive approval from any regulatory committee or board. The beauty of permissionless listing is that it can empower any and all other aspects of a platform such as trading, borrowing, or lending.
Lastly, both UniLend and Uniswap provide a decentralized exchange. A decentralized exchange allows people to spot trade tokens by using their own non custodial wallet. The fact that both platforms also have permissionless listing further empowers the two platforms’ decentralized exchanges by attracting immense liquidity and creating a free market for trading tokens.
Conclusion: Advancing the Decentralized Revolution Together
Uniswap can be credited for creating the paradigm that has led to attracting the masses into the decentralized revolution. UniLend plans on taking this revolution further by creating a decentralized permissionless money market and exchange all on one platform.
UniLend also wants to bring the DeFi revolution to other blockchains via interoperability. Interoperability will allow UniLend’s revolutionary platform to be operable on multiple blockchains and enable exchange, borrowing, and lending of tokens from various blockchains all on one platform.