Introducing UniLend V2 with isolated dual asset pools for Lending & Borrowing of all ERC20 tokens

6 min readOct 12, 2021

UniLend Protocol is all set to take a giant leap, welcoming every token for lending-borrowing & disrupting the untapped market of $500 billion.

We are proud and overwhelmed to bring the most significant tech update to our 100K strong community members and the entire DeFi ecosystem.

Yess! UniLend V2 is nearing completion

In less than one year, our team at UniLend has gone out to build one of the most adopted protocols in lending. We delivered bold things to the community; UniLend became a permissionless protocol and integrated the top three utilized chains Ethereum, Polygon & Binance Smart Chain.

UniLend V1 was a unique offering that made low gas fees Flash Loans a reality and, at the same time, introduced the concept of Automated Rewards Distribution to the lenders. As a result, we formed 50+ partnerships and witnessed phenomenal growth in the usage of Unilend V1 with 25+ asset lending pools and $10 million worth of Flash Loans utilized across Ethereum, Polygon, and Binance Smart Chain.

We also launched a $1 million grant program, and our engineering team has extended support to young and budding projects like uBoost to extend the usability of our protocol.

With all these updates over the past year, UniLend inched closer to the vision of Truly Decentralized money markets with Lending/Borrowing of all ERC20 tokens that exist and would be created in future.

But we didn’t let our affinity to build and bring revolution stop here. The development cycle of V2 protocol commenced soon after the V1 launch, and we are now finally close to the launch

UniLend V2 will enable anyone to list a token on the protocol and straightaway access the DeFi services without any barriers. This inclusive approach will set us apart from other DeFi protocols where they act as gatekeepers. In addition, UniLend V2 will open up collateral for all assets using our unique approach of dual asset pools.

Version 2 is more than just an incremental update — it marks a significant evolutionary milestone for UniLend. With v2, an era of a new financial system will impact the lives of billions of people with inclusion into Decentralized Finance.

Our community has been waiting for “V2” and are eager to borrow on the UniLend protocol. However, we did not rush in delivering borrowing yet because our ideology is to deliver fundamentally strong and secure products to the community.

After a year of maturity of the ecosystem, the success of UniLend permissionless lending and development in AMMs, we believe the perfect timing to bring the borrowing to the community has arrived.

So here is a glimpse of what V2 will bring in DeFi ecosystem — and what we intend to launch over the coming weeks and months

UniLend V2: The Leap for DeFi

UniLend V2 is a giant leap in protocol architecture and user experience. V2 will be a multi-layered, full-stack permissionless protocol that enables Dual Asset Pools for lending & borrowing.

UniLend dapp will allow a pair of any two ERC20 assets pooled together in permissionless nature and start lending borrowing. By eliminating the standard approach taken by major DeFi protocols, we will be the first to support every ERC20 asset for lending/borrowing without affecting or risking pools.

Lending & Borrowing

With V2, users will now be able to start borrowing more than 9000+ assets along with lending. In addition, the collateralization rates are algorithmically adjusted to incentivize the users and foster maximum liquidity in pools.

Dual Asset Pool

UniLend v2 introduces pools for dual assets. Dual asset pools prevent the tokens in a specific pool to be immune to price and liquidity fluctuations of assets in other pools. This unique approach also allows UniLend to enable permissionless asset pools which other protocols fail to include.

Flexible Lending

UniLend brings the flexibility to lenders to choose the assets against which they wish to lend by selecting the corresponding pools and preferred APY. As a multipool protocol, UniLend also empowers the lenders to manage their exposure instead of a single pool where they can not control which collateral will be used to borrow their funds.

Permissionless listing

Now UniLend’s permissionless framework will allow users to bootstrap new pools through an intuitive user interface that allows any combination of tokens, on-chain oracle, and custom pool parameters, including liquidation thresholds, loan-to-value ratios, and interest rate curves.

Flash loans

While much of DeFi’s success has been built on overcollateralized lending; we believe uncollateralized lending with flash loans is the next transformative step for DeFi. With UniLend V2, liquidators can utilize Flash Loans to borrow the capital from the UniLend Protocol itself to execute a liquidation.

Non Fungible Liquidity

In UniLend V2 the lending/borrowing positions are tokenized with non-fungible tokens. The debt tokenization also enables the users to trade their lending/borrowing positions in open markets.

Concentrated Liquidations

UniLend V2 becomes the first defi protocol to introduce concentrated liquidation for decentralized money markets. Even the most widely used protocols use highly inefficient peer to peer liquidations which often lead to underwater loans. UniLend concentrates the liquidations based on price for efficient, cost-effective and faster liquidations which is essential for securing the capital of lenders.

On-Chain Price Feed

UniLend V2 will use on-chain oracles for the Price Feeds to fetch market data for dozens of different cryptocurrencies. With this real-time pricing data, our lending/borrowing protocol can calculate the valuation of each user’s collateral and debt to determine when liquidations should be initiated. This feature ensures that UniLend’s money market protocols are always sufficiently collateralized.

Security

DeFi can do amazing things, but the consequences of even a tiny oversight can result in the loss of millions of dollars for users. That’s why UniLend takes security so seriously, and we devoted protocol testing for resilience to attacks by bad actors. UniLend V1 was also secure with Certik audited smart contract, and V2 protocol will undergo multiple similar audits.

Seamless User Experience

We have been continuously deploying many design thinking methods explicitly aimed at the experiences that users have with the DeFi itself. However, the present state of DeFi usability has been very complex for the general audience and with V2 we are bringing significant updates to accommodate the dapp use through mobile.

What’s next?

Implementing such a significant change to protocol requires a rigorous testing and release process. The UniLend engineering team emphasises on a testnet launch and bug bounties for the developer community to ensure a seamless transition from V1 to V2.

With V2, we are also delivering a protocol upgrade with major performance improvements. Thanks to the feedback received and progress made over the past several months, UniLend engineers could implement, test, and release high-quality code.

Over the next few weeks, we will actively launch V2 events and programs to include the community.