Product Update Issue 6: C-OP Progress and ULend’s Unveiling
After a heavy conceptual piece on Collateralized Debt Obligations (CDOs) and the opportunity for UNION, it’s time to mix it up with product screens. This time, we preview UNION’s C-OP aware lending platform, temporarily dubbed ULend.
C-OP entering the stress and refinement phase of the Closed Beta. Stay tuned for our Open Beta program.
ULend, our capital efficient lending platform based on Compound, is well under way with deposit/withdraw, C-OP borrows, and C-OP aware account liquidity in testing. Check out some screens at the bottom.
C-OP Progress: Final Development Stage
Before getting to ULend, a quick update on C-OP. We are in the final phases of closed beta and stress development. We’re not quite ready to test in prod like other DeFi trailblazers.
Our developers are:
- vetting premium distribution and C-OP exercise edge cases: For example, making sure premiums are shared correctly with liquidity providers as they freely enter and exit pools.
- testing pool risk controls: For example, preventing withdrawals or writing of new C-OPs when liquidity is under Minimum Capital Ratio (MCR).
- stress-testing: There are many race conditions to validate for pricing, pool deposit/withdraw, and exercising/expiration.
- polishing the UI: Building and testing numerous state changes, statistics, and transitions.
- optimizing gas costs: While we continue looking at leveraging gas-efficient chains such as Avalanche, we still have to operate on Ethereum in the interim.
After closed beta, we will host an Open Beta (still on testnet) before rolling to production.
Stay tuned for details on our Open Beta testnet program!
ULend: Capital Efficient Lending Platform
As shared previously, UNION has been building a lending platform that showcases C-OP for DeFi users, builders, and our partners.
We are excited to see how other DeFi projects incorporate UNION’s capital efficient lending into their own programs. We’ve seen interesting levered farming and lending projects recently that can further increase their leverage with ULend.
We chose Compound’s lending platform as our foundation, given its robustness, breadth of reach, and ease of adoption. Upon this lending DeFi lego we:
- Upgraded the entire protocol to latest version of Solidity. This itself was no small feat!
- Introduced recognition of C-OP tokens, and more generically, ERC-721 tokens. Side Note: could someone eventually deposit NFT and borrow against it? Maybe!
- Modified “generic lending pool” logic to properly handle ERC-721.
- Adjusted borrow capacity for assets optimized by C-OP.
- Updated account liquidity capacity logic to account for C-OP in asset value upward and downward moves.
- Built UNION’s Maximum Protection Capacity (MPC), a parameter that lets the lending platform adjust its tolerance for C-OP risk as percentage of total account liquidity.
What works now?
The deposit, withdraw, and C-OP optimization account liquidity considerations are currently in test phase.
Are you the “trust but verify” type of reader?
What does ULend look like?
Seeing is believing.
Disclaimer: We are in rapid development phase, and the screens may or may not look like these in final product. Also, some of the numbers are placeholders.