UNION — UNN Sale, Geyser, Roadmap, Best Practices
UNION is thrilled to announce the official date of the UNN token sale — November 22, 2020. The sale utilizes a linear pricing model and invites the Decentralized Finance (DeFi) community to join us as we build the open asset protection platform on Ethereum that reduces risks, barriers to access, and costs for a wide variety of market participants.
DeFi’s astonishing pace of innovation is accompanied by a theatre of speculation, increasingly complex and interwoven smart contracts, and lucrative exploits. Proper risk management solutions for investors shouldering principal risks are currently insufficient to cover the progressive influx of capital into the market, leaving retail investors at the peril of the Ethereum’s Dark Forest and institutions with a dearth of options for hedging risk.
The risks facing DeFi are multi-faceted, nuanced, and novel. Vulnerabilities span multiple layers of a composable web of DeFi lego blocks, of which many are intertwined to complex degrees. The market presents several distinct challenges for perceiving and modelling risk in a permissionless financial system. Without sufficient tooling and infrastructure for risk management, institutional and retail capital will not be able to manage risk at a competitive level to centralized finance.
Risk management and sophisticated asset protection instruments are the next great frontier for DeFi that can usher in a wave of new capital and support the existing community as well. The potential design space is enormous. By fusing conventional coverage modelling with bundled protection products and a no-KYC platform, UNION aims to lay the foundation for advanced risk management products and grant a higher degree of comfort to participants.
We’re excited to push the boundaries of scalable, open asset protection in the DeFi market, and welcome the broader crypto community to join us on our journey.
UNN Sale + Preregistration
The token sale of UNN will begin on Sunday, November 22, 2020. The demand-driven pricing curve will utilize a linear approximation to offer the token price from $0.035 (entry price of the sale) to $0.50 (exit price of the sale).
Details about the UNN Token Sale:
- Expected Start Date: Sunday, November 22, 2020
- 50M UNN tokens for sale (5% of total supply)
- Starting price: $0.035
- Ending price: $0.50
- Minimum purchase: $100
- Maximum purchase: $87k
- KYC is required
- You will need a Metamask account
- Restricted countries: The United States of America, The Cayman Islands, New Zealand, Canada, People’s Republic of China, Singapore, Republic of Korea, Belarus, Burundi, Central African Republic, Cuba, Iran, Libya, Democratic People’s Republic of Korea, Somalia, Sudan, Darfur, Mali, Republic of Guinea, Republic of Guinea-Bissau, Syria, Venezuela, Zimbabwe
- No UNN sale participant or token holder will be able to sell or transfer their tokens until the sale has concluded.
Please have MetaMask installed in your browser BEFORE you begin the process. It is also recommended that you only use Chrome, Brave, or Firefox as your web browser with the MetaMask extension.
Shortly, we will be releasing an article with instructions and further details about participating in the sale.
Inspired by similar work by Ampleforth, following the sale, we will launch the UNN Geyser, which will reward liquidity providers of UNN tokens to Uniswap with additional UNN tokens for their active participation. More details about that below.
Characteristics of UNN
The UNN token is used for governance purposes, such as voting on protection claims and related conflict resolution, adjusting risk parameters, or adjusting incentive programs. Early token holders will have the ability to participate in a liquidity mining program (e.g., the UNN Geyser) and a Voluntary Lockup Arrangement, where bolstered incentives beyond the UNN Geyser will be granted based on fixed lock-up periods.
Details for both the UNN Geyser and the Voluntary Lockup Arrangement are in the next section.
There will be a fixed total of 1 billion UNN tokens. The UNN token forms the basis for the UNION governance ecosystem, driving the incentives for liquidity programs, yield farming, and protection coverage across the platform. The token distribution is as follows:
- 300 million UNN provisioned for the network, ecosystem, and marketing. Examples include bug bounties, audits, community outreach, development of future products, etc.
- 93.333 million UNN have been sold in the first round, sold at $0.0075 / UNN
- 200 million UNN have been sold in the second round, sold at $0.0125 / UNN
- 43.2million UNN have been sold in the third round, sold at $0.025 / UNN
- 113.467 million UNN reserved for the treasury.
- 50 million UNN provisioned for the November 22, 2020, UNN sale.
- 200 million UNN reserved for the team and advisors.
UNN is a governance token with aspirations of being a staple DeFi token that is included in major DeFi platforms and protocols because of its deep liquidity. To achieve this we designed and built the project from the beginning to have no mechanical locks (meaning they can be moved freely by holders) beyond delivery following the public sale. Early investors have been selected based on their long term vision with the project.
UNN + pUNN + uUNN
The UNN token is the centrepiece of a multi-layered system using a three-token model.
The complimentary tokens to UNN are uUNN and pUNN. The UNN token is the only token available during the token sale. The uUNN and pUNN tokens are used within the capital and pricing model of the platform to divest the governance process from the UNION asset protection model. Separate tokens for governance and protection remove conflicts of interest arising from complex market dynamics, such as those experienced by NXM in September 2020.
Buyers of protection will receive uUNN tokens giving them rights to the protection policy. Writers of protection will receive pUNN tokens, representing the % share of the protection pool that the writer is powering. The pUNN protection pool incentives program is detailed below following the Voluntary Lockup Arrangement section.
More details about how the multi-layered governance, claims assessment, and protection process function are available in the official UNION whitepaper.
To incentivize on-chain liquidity providers of UNN (starting with Uniswap), we will provide a UNN Geyser. We built the UNN Geyser using AmpleForth’s Geyser as our base reference.
- The program will run for 1 year with 3-month phases.
- Phase 1: 20% APY for 3 months.
- Phase 2: To be announced.
- The launch pairs on Uniswap will be UNN/ETH and UNN/USDT.
Voluntary Lock Incentive
This lock incentivizes community participation in the early days of the project when governance activity is expected to be muted. In other words, think of this as a precursor to our governance incentive program. In return for locking their tokens, during which they cannot exchange/send the tokens, the purchasers will receive enhanced UNN incentives above the Geyser amount.
- The lock-up periods will be instituted based on limited windows of specific days. Locks will be offered in 30, 60, and 120-day terms. The goal is to encourage the alignment of incentives for the community in the long-term.
- The locked balance will be compounded daily and deposited (locked) into their wallet.
- Once the lock is lifted, the purchaser can exchange/send all tokens (original amount + interest).
A comparison of the different lock returns along with Geyser (no lock) for theoretical 1,000 token allocations.
Protection Writer (pUNN) Incentives
In return for providing the liquidity for a protection pool, protection writers or pUNN tokens holders will receive for their particular protection pool:
- 80% of the premium paid by buyers of protection offered by the protection pool. pUNN will receive the payment in whatever the premium token is. As per the whitepaper, we will start with accepting payments in stablecoin, like DAI.
- The remaining 20% will be split as such:
- 10% to a reserve fund for the pool, aka the “rainy day” fund.
- 10% as foundation operations and reserve pool.
- 50% of returns generated by reserve pools for the pUNN’s protection pool, which hold funds in excess of MCR for said pool.
- The remaining 50% will be split as such:
- 40% deposited back into the reserve fund.
- 10% as foundation operations and reserve pool.
- Governance: in tandem with our products going live, we will launch our governance incentive where UNN holders can lock their tokens for voting power and boosts to staking and/or pool returns.
- Lending: to launch in tandem with our OC protection. People can borrow against their UNN holdings.
- Other: we will run discretionary incentives and governance voted incentives as suited for the benefit of the ecosystem.
Our roadmap reflects a balance between meeting the pressing market demand for a suite of complete protection products and providing a robust and well-tested solution. Given the nature of the technology solution, we will always err on the side of conservative. Below roadmap is our aspirational target and may be adjusted based on progress and market demand.
- UNN Sale
- Private Development / Testing
- DAO strategic partner acquisition
- Production launch of Smart Contract Protection
- Production launch of Over-Collateralization
- Lending program
- Governance launch
- Production launch of Single-Step Gas Protection
- Production launch of Layer-1 Protection (Protocol TBD)
- A secondary market for protection
H2 2021 and beyond:
- Advanced models for better risk management/pricing
- New Protection: Multi-Step Gas, Bundled, Impermanent Loss (IL)
- Expanded Protection coverage
- Protection / Risk Management analytics for institutional entities
UNION Best Practices & Compliance Standards
Our general thesis on best practices is to deploy a series of state-of-the-art checks to ensure regulatory compliance and the privacy of user data. This begins even before our token sale, with our initial sales.
Steps that we take to ensure compliance and user data privacy include:
- Thorough KYC/AML is required for all UNN sales. This prevents wallet taint from funding not recorded on the blockchain prior to the token sale as well as validating purchasers during the token sale. UNN utilizes the expertise of 3rd party KYC/AML parties to ensure the security and sanctity of funds received.
- Multi-Vector KYC/AML — Liveliness, documents, and mobile phone verification. We utilize a 4-point check, including liveliness, which detects whether the person in front of the camera is real or just a picture of a picture.
- GDPR Compliance — We maintain data using Cayman Data Retention Standards with the view to meeting GDPR compliance requirements. We have invested heavily in network and server security infrastructure, including intrusion detection, and system/network monitoring for all systems that collect and maintain purchaser data as part of the sale.
- Geofencing — Our token sales site is geofenced, meaning that connection (and participation) to the sale are blocked from restricted countries. These include:
- The United States of America, The Cayman Islands, New Zealand, Canada, People’s Republic of China, Singapore, Republic of Korea, Belarus, Burundi, Central African Republic, Cuba, Iran, Libya, Democratic People’s Republic of Korea, Somalia, Sudan, Darfur, Mali, Republic of Guinea, Republic of Guinea-Bissau, Syria, Venezuela, and Zimbabwe
- Wallet Check — We vet wallets to ensure they are not a party to illicit activity.
You can also find our full privacy document in the link here.