UniLend (UFT) is a comprehensive permissionless DeFi protocol that offers spot trading services and money market accounts with lending and borrowing services through the blockchain.
Hence, I consider UniLend (UFT) a decentralized finance (DeFi) protocol that functions as a money market account. Consequently, they claim UniLend supports decentralized trading, lending, borrowing, and flash loans. They claim UniLend can support trading in any ERC-20 (Ethereum Request for Contact) token and use any ERC-20 Token as collateral for lending or as a synthetic asset.
In addition, they claim UniLend can help users list any asset on its supported blockchains Ethereum (ETH) and Polygon (MATIC). Moreover, they claim UniLend can support real-world assets and derivatives. They claim the real-world assets UniLend supports include the FAANG (Facebook, Amazon, Apple, Netflix, and Google) and precious metals including gold and silver.
How UniLend works
Theoretically, you could use UniLend to create derivatives from Meta (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG) stock. Thus, you could make loans using Amazon (AMZN) or Alphabet (GOOG) stock as collateral for UniLend loans, or UniLeand margin trading.
UniLend contains smart contracts that perform actions such as lending or borrowing. To elaborate, a smart contract is a digital robot that performs a specific action in the blockchain. For example, UniLend’s smart contracts loan money or create credit lines.
Users get the capability to lend and borrow against their assets by paying interest. UniLend provides liquidity for asset trading and lending through the UniLend platform.
UniLend powers trading by creating corresponding trading pairs that operate on its platform. They claim this capability enables decentralized spot trading. Moreover, UniLend’s Flashloan protocol lets users make uncollateralized loans, utilize arbitrage, make collateral swaps, and create self-liquidation opportunities.
The UniLend (UFT) functions as the governance token for the UniLend platform.
UniLend (UFT) Features
The UniLend Platform contains several features the developers claim will add immense value. Those features include:
DeFi Lending and Borrowing through UniLend’s DEX (decentralized exchange) and Automated Market Maker (AMM). They claim the DEX & AMM could allow users to list any token on UniLend without requiring permission. Hence, they can lend or borrow against the token without permission.
Theoretically, UniLend’s DEX, and AMM could allow users to trade on UniLend without a middleman. They claim UniLend can collateralize any ERC-20 token for lending and borrowing. UniLend could offer flash loans supported by permissionless lending.
They claim UniLend offers multi-chain DeFi operability. Ultimately, they want to offer UniLend DeFI services through the Ethereum (ETH), Binance Smart Chain (BNB) and Polygon (MATIC) blockchains. They hope to add other blockchains such as EOS in the future.
They are building a UniLend ecosystem that will link several Dapps (Decentralized Apps), Launchpads, DeFi solutions, Exchanges, Automation, Synthetic Assets and Integrations. Users access the UniLend ecosystem through the UniLend App. It appears the UniLend App is up and running.
What Value Does UniLend Have?
There is market interest in UniLend. CoinMarketCap named UniLend (UFT) the sixth-most trending cryptocurrency on 14 May 2022.
In contrast, UniLend was CoinMarketCap’s 937th largest cryptocurrency, with a Coin Price of 18.2₵ on 16 May 2022. CoinMarketCap estimates UniLend had a $5.652 million Market Cap, a $18.200 million Fully Diluted Market Cap, and a 24-Hour Market Volume of $2.504 million on 16 May 2022. They base numbers on a Circulating Supply of 31.053 million UFT, a Maximum Supply of 100 million UFT, and a Total Supply of 100 million UFT.
Meanwhile, CoinBase gave UniLend (UFT) a Coin Price of 18₵ a $5.7 million Market Cap, and a $2.59 million 24-Hour Market Volume on 16 May 2022. They base numbers on a Circulating Supply of 31.1 million UFT. CoinBase gives UniLend an all-time high Coin Price of $4.39.
An Interesting DeFi Protocol
I think UniLend is an interesting DeFi protocol that could make money from margin lending and money markets. Speculators need to watch UniLend (UFT) because there could be an enormous demand for its products.
The Financial Industry Regulatory Authority (FINRA) estimates the total debit balances in customers’ securities margin accounts were $772.94 billion in April 2022. In addition, FINRA estimates the Free Credit Balances in customers’ cash accounts were $242.724 million in April 2022, and the Free Credit Balances in Customers’ Securities Margin Accounts was $188.652 million in April 2022.
Hence, there is an enormous market for margin lending that UniLend (UFT) could tap. It looks as if UniLend has a Defi protocol that could make money if it works. UniLend is a DeFi protocol speculators need to watch.