Insider Series Overview: Highlighting UniLend v2 OMNIS Innovative Features
As we draw closer to the launch of our OMNIS version in the upcoming weeks, this is an important time to highlight the innovations and features that greatly benefit OMNIS users in terms of security, user experience, and utilizing their crypto assets to unlock their true potential.
We unveiled our vision to act as the base layer for future DeFi innovations in Web3 space. Since OMNIS is permissionless, open-source, and integrable, this expands the scope of products that can be built on our lending and borrowing functionality.
Isolated Dual Asset Lending Pools
In UniLend OMNIS’ permissionless money market, any user can create any ERC20/ERC20 pool to begin lending and borrowing for those assets. Every asset pair exists as an independent pool and has no cross-collateralization.
The Isolated Dual Asset Pool model ensures a higher level of security where the volatility of one asset doesn’t compromise the entire protocol.
Lenders will have the power to earn a risk-free yield on major crypto assets and a long list of tokenized assets. Borrowers can leverage the lent assets using collateral.
Non-Fungible Liquidity Positions
NFTs have caught the eye of the Web3 community in the past few months. NFTs can represent complex contractual agreements in the world of finance such as one’s right to withdraw funds from liquidity pools.
UniLend OMNIS will integrate NFTs for representing users’ liquidity positions. The advantage of these NFT-based liquidity positions is endless as they provide better customizable options.
UniLend OMNIS implements NFTs as certificates for equities. The descriptive nature of NFTs is better suited to manage higher dimension variables associated with lending and borrowing.
DeFi is moving towards NFTization where advanced financial instruments will be represented in the form of NFTs and the motivation to do so is a simple one; the ability of NFTs to store highly complex data provides better fund utilization and enhanced user experience.
Long or Short Digital Assets with OMNIS
In the trading of assets, an investor can take two types of positions: long and short. An investor can either buy an asset (going long) that they expect will grow in value or sell it (going short), which they expect to decline.
UniLend Finance is dedicated to building a permissionless money market for lending and borrowing all crypto assets. Users are encouraged to interact with our protocol and leverage a wide range of new DeFi strategies made possible by the permissionless nature of our protocol.
Lossless Treasury Management for DAOs
DAOs have proven their importance in this ecosystem by leading every aspect of the industry from being incubators for decentralized applications, to governing DeFi protocols. DAOs are headless organizations that run on the basis of instructions given by smart contracts and governed through on-chain interaction.
DAO treasuries now hold more than $9B in funds and are expected to grow at a high rate with the evolution of this industry. DAOs are the companies of the future and every company requires robust treasury management. As much progress has been made in the DeFi world, treasury management has become a major issue to be addressed.
Earning a Yield on DAO Treasury
Most DAO treasuries comprise their own token which makes them vulnerable to market conditions.
With UniLend OMNIS, DAOs can create lending pools for their governance token that can earn yield from the borrowers. A higher utilization rate of the pool with fetch higher yields for DAO with is completely lossless.
Borrowing against Treasury
Protocol treasuries need to be liquidated to run the operations of an organization. Selling part of the treasury during a bull market extends the team’s runway. While this may be great to capture value from protocol’s growth but can also be detrimental in cases of market downturns and flash crashes. Such fluctuations are a nightmare for any management treasury.
Uniswap treasury has dropped more than 70% due to a price dip since ATH in a few months. DAOs doing protocol treasury management find themselves in a tight spot in such situations.
UniLend offers permissionless lending and borrowing platform where DAOs can borrow from on-chain lenders for operational expenses without having the need to sell any native token. If the borrowed funds are deployed in the best interest of the protocol, the funds will lead to positive outcomes.
In this way, treasuries can avail on-chain loans against the collateral to provide operating capital without the need to sell tokens upfront.
The DAO treasury system needs to employ better measures of fund management. UniLend OMNIS offers the DAOs, a comprehensive solution to not just earn a positive return on their treasury, but also to protect them from a short-term sale of the governance tokens.