MyFinance x Unicrypt
Hi all, this article will be updated from time to time.
First and foremost, MYFI use Unicrypt as a platform for locking the liquidity pools from the Uniswap in a time lock of 6 months. A liquidity locked account allows an investor to wait a certain amount of time after depositing capital before requesting a redemption. MYFI liquidity will lock for 95 Ethereum together with 7600 MYFI for liquidity.
For the first day which is on 23 March 2021, 50 Ethereum has been locked for 4000 MYFI and for the second phase a total of 45 Ethereum will be locked with 3600 MYFI. Before a redemption request is processed, an investor must wait for a specified period of time, usually one to three months. Redeemable restrictions have the advantage of allowing fund managers to invest in liquid assets and receive a return premium as a result.
Redemption restrictions can be expensive if they prohibit investors from withdrawing any token before anticipated losses occur. The procedure of liquidity locking is straightforward which is the movement of the pool token is limited by a time-based function. This means that once the restriction is in place, they can’t be moved or redeemed until the time limit is met. This gives people more confidence in the markets they’re involved in because they know the market will exist in some form for at least the next few months.
After further consideration, we believe that incorporating the Unicrypt locking system into our design would have been a better choice. This would have allowed us to gain confidence from them without asking for permission, boosting user confidence in our actions. However, for an honest dev team, locking liquidity tokens is very easy from a code perspective.