GAINS Associates
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GAINS Associates

Unbound Finance — Telegram AMA — August 29

On Sunday, August 29, we had the pleasure to welcome to our Telegram chat:

Tarun Jaswani, Founder & CEO, and
Pratik Oswal, CMO.

We asked them questions about the development of Unbound Finance.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Summary

Unbound is a decentralized cross-chain liquidity protocol that is building the derivative layer of Automated Market Makers (AMM). Unbound intends to build products that are both native and composable to the DeFi ecosystem.

Unbound protocol is building a management layer over the existing AMMs by locking up LPT to mint synthetic assets that further reinforce liquidity in AMMs and Defi, unlocking liquidity from existing AMM Liquidity Pools.

The project provides the first-ever debt-free liquidity provision system! The platform provides liquidity to AMM LPTs and issues a Stablecoin (UND) in the form of a minted token. The platform unlocks the LPTs once the UND is returned, irrespective of time.

The Unbound protocol is a dual token ecosystem. It uses UND as a stablecoin and UNB as a governance token. The UND is a stablecoin that is pegged to USD and collateralized by LPT (Liquidity Pool Tokens). The value of UND minted is based on the value of the deposited LPT.

Introduction

Q — Ayeley from GAINS: What did you do before crypto and did you have any other previous venture in crypto? What are your roles at Unbound Finance?

A — Pratik from Unbound Finance: I am an Engineer and I was working for 4 years with Stanford University’s Highwire Press post which I was leading an ed-tech startup. In the crypto space, I have been a blogger and the Chief Technical Analyst at a leading Crypto Media House. I have written over 200 articles on project reviews and have been a strategic advisor and investor in over 50 projects. I am the CMO at Unbound Finance.

A — Tarun from Unbound Finance: I was building an AD Network for VR apps and working closely with companies like Unity, Steam, Etc. I discovered Blockchain in 2016–2017 and went all in :) Established a Family office, attended conferences, and traveled the whole world understanding how each community was treating this technology. Being a coder helped me look under the hood and figure the next fundamental shift. I started building Unbound early last year, once I realized that AMMs will be zero to one innovation in this space. I am the Founder & CEO of Unbound Finance.

Q — Ayeley from GAINS: How many people are on the team?

A — Pratik from Unbound Finance: We have a team of 25 members out of which 15 are Engineers

About Unbound Finance

Q — Ayeley from GAINS: Cool. What is the project about in a few simple sentences, and what problem is it looking to solve? For how long have you been working on Unbound Finance?

A — Pratik from Unbound Finance: Unbound Finance is a decentralized, non-custodial platform that is building a derivative layer over the existing AMMs and aggregates these AMMs intending to increase the overall capital efficiency of the DeFi space. Liquidity providers can compound their earnings by leveraging their LP tokens to mint UND (decentralized, cross-chain, stablecoin soft pegged to the US dollar) and uETH. The protocol is characterized by several unique features, some of which include:

Get Liquidity Without Removing Assets From Liquidity Pool

Users can keep their liquidity on a DEX in a liquidity pool and still have additional stablecoins to trade on different AMMs. For example, if a user has $10,000 locked in the $USDT-$USDC pool on Uniswap, that user can lock up their LPTs on Unbound and mint stable coins ($UND) worth $8,000 on BSC to trade on PancakeSwap while the users liquidity is still on Uniswap thereby enjoying the benefits of fee on Uniswap and having enough liquidity to trade on PancakeSwap. This way Unbound will be able to move liquidity from AMMs across different chains to PancakeSwap and vice versa without physically removing liquidity. Similarly, we support different AMMs across Ethereum, Polygon, BSC, Harmony and many others are in the process like OKEx chain, Klaytn, HECO Chain, Solana, etc.

Debt-Free Borrowing

The protocol charges no interest on loans taken out by the liquidity providers. To redeem their loan, they simply repay the amount of UND or uETH they borrowed to retrieve their collateral (i.e. their LP tokens).

Liquidation-free Collateralization

Unbound completely nixes the liquidation engine seen with more collateralized lending platforms. As a result, users do not need to concern themselves with the potential liquidation of their collateral. Instead, Unbound uses SAFU, an emergency insurance fund, to secure the collateralized assets of borrowers during so-called black swan events.

Perpetual Borrowing

At Unbound, loans have no fixed repayment deadline. Users can unlock their collateralized assets any time by paying back the outstanding debt — without any restrictions.

The UND Stablecoin

Unbound Finance’s first product is the cross-chain, decentralized stablecoin known as UND. It is an ERC-20 token soft-pegged to the US dollar and backed by user deposits.

We have been building Unbound Grounds up for over a year now.

A — Pratik from Unbound Finance: We have been building Unbound Grounds up for over a year now

Q — Ayeley from GAINS: One thing that makes many people think twice about providing liquidity is impermanent loss. Does Unbound help solve this problem?

A — Pratik from Unbound Finance: That is one of the best parts about Unbound. We use LPTs as collateral. LPTs are comparatively much more stable than a single crypto asset and with these as collateral and setting the correct Loan-to-value ratio using AI and ML, we have designed Unbound to mint debt-free loans without the need of a liquidation engine after considering the Impermanent Loss. Although we do not solve the impermanent loss problem, users won’t have to worry about getting liquidated anymore due to Impermanent Losses drawing down their total collateral value. You can find out more about our mathematical module for No Liquidation and Impermanent Loss here, and these are the Impermanent Loss simulators.

Q — Twitter user @antonio50221026: A very striking feature of the protocol is that they do not have a deadline for repayment of the loan, just pay the loan at any time and unlock the LTPs. How can the protocol work without a deadline for the payment of repayments? How does this feature work in the protocol?

A — Pratik from Unbound Finance: This is one of the most important features of our protocol, as important as no liquidation. We do charge an upfront minting fee that acts as a stability fee for the ecosystem. There are two ways of generating revenue for a protocol like us: Here I would like to give you an example of Disney wherein

a) either you charge at each ride or
b) cumulative fees at the entrance which is approximately the average of all rides.

We have chosen the latter since this can act as a stability fee that could be changed as per the demand of UND and it also helps that the underlying asset (LPTs) is a yield generating asset that would need locking and unlocking action that will generate a fee each time for unbound.

Q — Telegram user Jose Gamboa: Unbound uses SAFU, an emergency insurance fund, to ensure borrowers’ collateralized assets during so-called “black swan” events. completely rejecting the settlement engine seen with most lending platforms. How does SAFU work? What benefits does SAFU offer?

A — Tarun from Unbound Finance: 40% of our minting fees will be contributed to SAFU funds. Having a SAFU fund helps to maintain peg during bank swan events.

Token

Q — Ayeley from GAINS: What is the token use case and how does it capture the value of the ecosystem you’re building?

A — Pratik from Unbound Finance: $UND is our first synthetic asset which is a decentralized cross-chain stable coin. We will be having our next synthetic asset as $uETH which will be a synthetic asset minted by locking LPTs which have ETH on one side. $UNB will be the governance token for Unbound. Holders of $UNB will be active members of the DAO and will be able to vote on all protocol changes, whitelist pools for $UND minting, and set Loan to Value. As seen on multiple governance tokens like UNI, SUSHI, BAL, CRV, QUICK, etc. the higher the TVL gets locked in our system, the higher will the price of $UNB be. We will be launching $UNB pools with all our partners and users adding liquidity to $UNB pools will be rewarded.

Q — Telegram user CE MM: I understand that $ UND was created for the benefit of Polygon users by serving a fast, borderless stablecoin that will act as a large fiat bridge on and off the ramp. But how will $UND breakthrough DeFi benefit through Unbound Finance without more widespread interoperability?

A — Pratik from Unbound Finance: Well it is not just for Polygon but also for BSC, Ethereum, Harmony and very soon we will be having our stable coin on OKEX chain, HECO, Klaytn, Solana, KCC, and many more making UND a stablecoin available on all chains.

Security

Q — Twitter user @greyhair_08: There is some explaining to be done so that everyone understands. Blockchain is fantastic, but users must have complete faith in your project for their funds to be moved.

A — Pratik from Unbound Finance: We totally agree. Users must have faith. We understand that trust is extremely important in this space and so is security. For users to gain trust, we have taken all necessary measures to create a bleeding-edge tech that is absolutely secure. Our first security audit and threat modeling exercise (STRIDE) was done by Peter Kacherginsky, a principal blockchain security researcher with a major crypto exchange and incident responder who helped us in identifying the threats such as flash loan attacks in our platform’s infrastructure and successfully executed our first audit. The second audit was completed with Securing, who reproduced the flash loan attack threat as pointed out by Peter Kacherginsky during the first audit. We resolved the issue by adding a block limit lock mechanism and implementing a new oracle structure.

Partnerships

Q — Twitter user @greyhair_08: We’re curious as to which protocols will support this stablecoin. Do you have any updates on this?

A — Pratik from Unbound Finance: We already have the founders of some of the top-tier projects invested with us. We have already signed partnerships with Polygon, Harmony, Zilliqa, Curve, Swissborg, Coin 98, Tomochain, Frontier, Polkastarter, DAOMaker, DFYN, KSM Starter, Kyber, Enjin’s Efinity, Gnosis, MEXC, and many other projects.

Finances

Q — Ayeley from GAINS: Did you raise funds so far? If so, how did you handle them? And are you planning to do any future raises?

A — Pratik from Unbound Finance: We have raised funds through a series of Angels like

Naval Ravikant — Founder Angelist
Sandeep Nailwal — Co-founder and COO of Polygon,
Maxim Blagov — Co-founder and CEO of Enjin,
Thanh Le — Founder of Coin98,
Stefan George — Co-founder and CTO of Gnosis,
Ninor Mansor — Partner at Arrington XRP Capital
Loi Luu — Founder & CEO of Kyber Network,
Amrit Kumar — President at Zilliqa,
Sahil Dewan — Co-founder of Harmony,
Long Vuong — Founder and CEO of TomoChain,
Jack Herrick — Founder of Wikihow,
Daniel Stockhaus — Co-founder of Polkastarter
Julien Bouteloup — Founder of Stake Capital and Curve Finance Core Team Member
Barek Sekandari — COO of Fantom
Thomas Bailey — General Partner of Bitriver

and some major VCs like Pantera, XRP Arrington Capital, Hashed, CMS, Hashkey, LD Capital, ArkStream, etc.

Business Development

Q — Ayeley from GAINS: What stage is the project at? And what should we expect in the future?

A — Pratik from Unbound Finance: We have our testnets live and running for 6 months. We have our testnets live and running for 6 months

Ethereum
Binance Smart Chain
Polygon
Uniswap V3

We have more than 5000 testnet users. We request and invite all community members to use our testnet and share their feedback with us. You can request our test tokens from the faucets in the testnet. Faucet :
-on Ethereum
-on BSC
-on Polygon

And this is our Roadmap for testnet and mainnet launches till November

Q — Telegram user Rick Garcia: Ambassadors play a very important role in every project, Do you have an ambassador program? If yes, How can I be one?

A — Tarun from Unbound Finance: Hi Rick. We do have an ambassador program and are launching communities in Vietnam, China & Russia. Please reach out to us.

Pratik and Tarun, thanks for coming into our community, and taking the time to answer our questions. Anything else you’d like to say? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS Associates

Thank you so much for your time and questions. Do join our Telegram and Twitter to stay updated with our Public Sale news and all partnership announcements. It was wonderful talking to all of you! — Pratik Oswal from Unbound Finance

Join us now! Enjoy quality articles, daily curated news, insightful infographics, and enter a vibrant, fun, and knowledgeable community!

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