Union & UniLend Partner to Bring C-OP to UniLend’s Lending Protocol
UNION is pleased to announce our partnership with UniLend, the permissionless money market and spot trading protocol, to bring collateral optimization to UniLend’s users. UniLend will incorporate UNION’s C-OP product into its platform, enabling borrowers to reduce their locked collateral requirements for depositing assets.
“Adding C-OP to Unilend’s lending platform opens the door for any ERC-20 to benefit from 1:1 borrowing power while simultaneously offering UNION C-OP liquidity providers an unlimited selection of tokens they can choose to support. UNION is excited to offer protection for Unilend’s one-stop shop for trading, liquidity, and lending.” — John Liu, CPO of UNION.
UniLend is a permissionless money market protocol complete with its own DEX. Notably, UniLend does not control its platform’s listing process. Instead, it allows any ERC-20 token to access its features permissionlessly. The team recently rolled out UniLend Initium V1, the Alpha version of the protocol, accompanied by an early access program which is now open to the entire community.
With UNION, borrowers on UniLend can opt for C-OP’s collateral efficiency advantages for a small premium. For example, Alice can deposit ETH to borrow USDC at a reduced over-collateralization ratio from 150% to 125%, without exposing UniLend to any further risk — as if Alice had over-collateralized her position at the required 150% without C-OP. Additionally, Alice’s borrowing capacity is augmented during positive market movement in her underlying collateral (ETH). Her collateral receives non-linear costs savings during price markdowns of the ETH price that trigger liquidation.
Reduced over-collateralized ratios are appealing to both retail and professional traders. C-OP integration from the outset of UniLend’s mainnet launch should also serve as a strong incentive for bootstrapping the liquidity of the platform by drawing from a sizable pool of prospective users anxious to unlock more of their capital for yield opportunities across DeFi.
“Every partnership we make is another key to unlocking the future of decentralized finance for everyone. We understand that DeFi users are targeting a more efficient control on capital and we see Collateral Optimization (C-OP) as an integral DeFi lego to help usher in decentralized finance 2.0.” — Chandresh Aharwar, CEO & Co-founder of UniLend Finance.
As part of the partnership, UNN will be listed on UniLend’s platform. In addition, an AMA with leaders from both projects will occur in the near future. We look forward to engaging further with UniLend about integrating future UNION products and how we can help their platform minimize risk while concurrently augmenting capital efficiency for its user base.
UniLend is a decentralized protocol that combines spot trading & money markets with lending and borrowing services through smart contracts. Listing of assets on UniLend is entirely permissionless, and the platform is governed by community stakeholders.
UNION is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. DeFi participants manage their multi-layer risks across smart contracts and protocols in one scalable system. UNION decreases the entry barriers for retail users and lays the foundation for institutional investors. UNION’s full-stack DeFi protection is inclusive, composable, and brings battle-tested capital and pricing models from TradFi to the DeFi ecosystem.