Unido EP (Enterprise Platform)- The Gateway for Institutional DeFi Access
The exponential growth of the DeFi space has posed significant challenges to the world’s leading blockchain networks. High transaction volumes and long processing times can lead to technical complications that may deter new participants from entering the blockchain space. This is particularly true for DeFi applications. Here we discuss how Unido offers a viable way forward.
Recent crypto briefings, press releases, and project updates are replete with news on the issues and challenges that are preventing the growth and adoption of blockchain, cryptocurrency, and decentralized finance (DeFi) applications. Exorbitant transaction fees (gas fees on the Ethereum network) and long transaction times can inhibit the growth and cost-effectiveness of projects running on high-usage blockchains such as Ethereum which, as the first smart contract-powered blockchain, has enjoyed first-mover status for many years now and has long been the blockchain of choice for new projects.
Current Alternatives to Ethereum
Due to the issues of long processing times and network congestion, many alternatives have arisen. These include Binance Smart Chain (BSC), which was developed to overcome many of the bottleneck, throughput, and gas/fee issues that the Ethereum blockchain has been known to suffer from, and Polkadot, which was designed to be chain-agnostic and was designed with built-in chain interoperability. Many other chains have also entered the fray to overcome the processing challenges faced by Ethereum.
Alongside the protocol-level improvements introduced by these new chains, side-chains and Layer 2 solutions such as Polygon and Loopring have skyrocketed in popularity as traders try to lower their trading and settlement costs and steer clear of paying the high miner fees of Ethereum and other high-use chains.
These innovations can certainly help ease the burden of overloaded blockchains, but the fact remains that DeFi solutions, in their current forms, are too fragmented, too technically complicated, and come with high implementation, learning, and privacy risks that prevent the onboarding of institutional players at a mass level.
The Unido Vault: A Viable Way Forward
Unido’s DeFi Vault is an innovative new solution to these issues. The Vault is an enterprise-grade custodial wallet that provides a secure and integrated bridge to several DeFi investment vaults such as Uniswap, Balancer, and Yearn Finance. The Vault comes with access to a centralized comparison dashboard that shows investments available in the DeFi ecosystem, as well as the potential returns for each investment opportunity.
With this integrated view into the financial performance of deployed assets, as well as advanced analytics, firms can manage and invest their liquid crypto assets literally with the push of a button.
UDO — A High Token Utility
The gateway token needed to access Unido’s suite of enterprise-grade DeFi applications — including the Unido Vault — is the Unido token, or UDO. UDO is a utility token that will be used for staking and for paying platform fees, and the value of UDO will scale as new solutions are implemented within the UDO ecosystem. Furthermore, once the platform reaches a critical threshold, Unido will use platform revenues to buy back and burn tokens from the open market.
The “Burn and Recycle” System
Unido’s “burn and recycle” model helps to capture the value that is generated by the adoption of the different products in the Unido ecosystem. It also gives UDO a deflationary price design.
A brief overview of how it works is as follows:
- UDO is used to pay a consumption fee for using the platform. In the beginning, 60% of consumption fees are burnt. 20% will be allocated to the reserve, and 20% will be allocated to the ecosystem development fund (EDF).
- Once 23 million UDO tokens have been burnt and the overall supply falls from 115 million to 92 million tokens, tokens will no longer be burnt. Instead, they will be recycled by re-injecting liquidity into the Unido ecosystem in a perpetual cycle.
- Unido will use a new solution called the “Consumption Fee Burn Function” (CFBF) that will measure the revenue generated by Unido products to buy back and burn UDO tokens from the open market every month. This will continue until the development of Unido’s Polkadot-based token is complete, at which time this feature will become a real-time event.
These systems will help the community better share in the successful adoption of Unido products. They will also help Unido to bridge the temporary gap between user adoption of the Unido platform and the value capture mechanism of the UDO token until the ongoing development of the Polkadot network is completed. They will also help onboard new, institutional players by providing seamless user onboarding, as well as low-cost, user-friendly, end-to-end DeFi solutions that can be customized and deployed as a white-label, plug-and-play product.
To learn more, please visit the project page here.
Unido is an enterprise platform for decentralized capital markets. It was incubated by the team behind AllianceBlock, SpiderDAO, and Bridge Mutual, and is supported by strategic partner, DuckDAO. It is designed to help enterprises seamlessly manage their crypto assets via an enterprise-grade platform with built-in DeFi and crypto banking management tools.
The project is led by a highly experienced team from Macquarie Bank, Wipro, Coca-Cola, and Goldman Sachs, and it is the first enterprise-grade asset management platform being built on Polkadot and features native apps that are already available for download for iOS and Android.