All You Need To Know About Unifi Protocol DAO

Smart contracts are computer codes usually developed on the Ethereum blockchain that store and automatically execute a financial or legal agreement. Since its inception, it has been used to build different De-Fi projects due to its autonomous and flexible attributes. Unifi Protocol DAO is a project that aims to use smart contracts to achieve its goals and the entire industry.

What is The Unifi Protocol DAO?

Unifi Protocol is a group of interoperable, decentralized, non-custodial, multi-chain smart contracts built on the Ethereum platform that aims to create the building blocks for De-Fi’s growth. The Unifi protocol was built to allow scalability and versatility within the trustless structure of on-chain smart contract solutions. Unifi’s goal is to become essential to each blockchain project and the De-Fi space. It provides smart contract-based building blocks to make UNFI easily available to developers who wish to develop their unique De-Fi-based products and services.

The smart contract platform provides a plethora of blockchain services to new blockchain developers. It also enables multi-chain accessibility for De-Fi and its tokens to be traded and used on other chains that have Unifi functionalities. Unifi bridges ETH-based De-Fi products to the growing De-Fi markets on different blockchains.

History of Unifi Protocol DAO

The idea for Unifi was first thought of by Juliun Brabon in April 2018 when he started SesameSeed, but it was eventually launched a couple of years later in 2020. The SesameSeed team, including Kerk Wei Yung and Daniel Blanco, created SesameSeed to be a multi-chain digital asset staking community but later decided to build an ecosystem that serves as the pillar for a multi-chain De-Fi universe.

The team has successfully created interoperable, decentralized, and multi-chain products and incorporated them into a single platform that allows users to gain the most from the growing De-Fi ecosystem.

Unifi Protocol DAO Ecosystem: uTrade, uBridge and Unifi staking and farming

Unifi Protocol DAO comprises essential components that fuel the platform’s functional ecosystem: uTrade, uBridge, uLend, and uStake.

uTrade V2

This is the heart of the Unifi Protocol DAO, a multi-chain Decentralised Exchange linked to major EVM-compatible blockchains like Binance Smart Chain, Harmony, Ontology, Tron, Avalanche, Polygon, loTex, and BitTorrent. uTrade functions on user-generated liquidity pools rather than a centralized market maker. Users can earn UP rewards for providing liquidity on the DEX. The rewards are derived from DEX transaction fees.

The uTrade V2 is an Automated Market Maker (AMM) that utilizes Unifi’s non-custodial, interoperable smart contracts operating on multiple blockchains. uTrade V2 is controlled by the Unifi Protocol team and serves as a working proof-of-concept trading platform for ensuring multi-chain swaps and liquidity mining to power UNFI.

uBridge

Another major component of Unifi is its cross-chain protocol called uBridge. Through uBridge, users can transfer assets to any EVM-compatible blockchain. To ensure the success of this protocol, Unifi maintains liquidity pools in all supported blockchains.

uBridge functions differently from the common method of cross-chain bridging, which involves providing wrapped tokens, minting, and burning. Instead, it focuses on deploying funds from liquidity pools at a user’s request.

It is a better alternative to the method other cross-chains adopted but has flaws. A major drawback is the regular gas fees users must pay for all cross-chain transactions. Also, bridging accounts are usually huge targets for hackers because of the large flow of assets in just one location.

uBridge is deployed on almost every blockchain linked to the Unifi Protocol. When transactions are initiated on the origin chain, uBridge on the destination chain reacts and cryptographically verifies the transaction’s authenticity before completion.

UNFI Staking and Farming

Unifi Protocol uses a first-of-its-kind blockchain node staking reward system. The Unifi Protocol Ecosystem allows users to participate in De-Fi by staking and earning node rewards. 100% of node rewards earned on the platform are shared with the community of stakers.

Unifi protocol also provides new yield-farming opportunities. With the help of its beta-stage Unifi Farms, Unifi Protocol users gain liquidity in the DEX pools. Unifi labs believe non-stake farming is more secure since Unifi farms can not transfer or lose liquidity assets.

Unifi NFT Anniversary Collection.

The UNIFI Anniversary Collection, Unifi People NFT was created to appreciate the UNIFI protocol community for participating in the UNIFI DAO activities. The collection was created for community members who staked their UNIFI for rewards, members who created referendums to advance the Unifi ecosystem, and members who voted on them.

Only 750 Unifi People NFTs were minted in total and each NFT contains some super rare attributes and special characteristics. Some UNIFI people are rarer than others and a few of them will be minted with ultra-rare characteristics or accessories or in some cases no accessories. Some rare attributes include yellow t-shirts, diamond shoes, or rare accessories like glasses, eye patches, or Laszlo’s pizza boxes.

These NFTs are available to users who took active roles in the governance of the protocol. Before the release of the NFTs, a snapshot was taken on Ethereum at blockheight 13637590.

There are 3 criteria for being eligible for the NFT, which include:

• The user has to have staked UNIFI on the Ethereum platform at the time of the snapshot;
• The user must have created a UNIFI at any time before the snapshot;
• The user must have voted in a UNIFI referendum at any point before the snapshot.

How Does uBridge Work?

uBridge is tasked with transferring pegged tokens from one protocol to the other. Its first release will allow users to transfer UNIFI tokens between available networks, with liquidity made available by UNIFI initially. The next release will see UNIFI transferring other ERC-20 tokens between protocols.

This process, however, is not trustless as it requires the deposits to be verified by the signers. This verification is performed off-chain, and eventually, the validity of the signatures is checked by the destination blockchain.

The process is broken down into three stages:

• Deposit Phase: In this phase, users who want to transfer tokens will deposit their token and their selected destination blockchain. The smart contract then analyzes the transfer, and once the transfer is available, the token is deposited into the uBridge contract.
• Verification Phase: In this phase, the Unifi backend will receive the deposit event that has been started and will seek signers’ signatures on the deposit. The signer gets the hash of the deposit and confirms that the deposit is valid. Once approved, the signer signs the deposit with their private key.
• Withdrawal Phase: Once the deposit has been confirmed and signed by all the signers, the protocol’s backend will execute the withdrawal in the destination blockchain.

Main Features Unifi Protocol DAO: Interoperability, Staking and Liquidity providing

Unifi Protocol DAO aims to connect the different De-Fi marketplaces to achieve low-cost cross-chain trading. The project is useful to its users and the entire crypto ecosystem. Some of the benefits include:

Interoperability

The key to Web3 is interoperability, and the connection of different De-Fi marketplaces serves as building blocks edging the crypto ecosystem closer to achieving its goals. Unifi Protocol and its suite of smart contract-based building blocks play an essential role in achieving the broader goal of the industry.

Staking and Liquidity Providing

UNFI token holders earn high liquidity and staking rewards, which serve as incentives for community members. It encourages users to contribute to the community’s growth and the UNFI token.

Unifi’s Multi-token System

Unifi Protocol DAO has a multi-token system comprising UP reward tokens and the UNFI governance and staking token. These two are the backbone that keeps the ecosystem running.

What is UP Token?

UP (Unlimited Potential) token is distributed to liquidity providers in the uTrade decentralized exchange. The token is burned and minted to user demands and is directly proportional to transactional activities across the entire Unifi Protocol DAO ecosystem. This includes designated fees or earnings from all Unifi-developed platforms.

UP token has an unlimited supply. Unifi’s unique reward and revenue system creates a strong incentive for users to hold and earn UP. The token continues earning a share of fees and other revenues generated by UniFi as long as it is held.

UNFI Token

This is the governance and staking token for the Unifi Protocol DAO. Token holders have a say in the platform’s governance by delegating their staked amount to a Community Council Representative (CCR). Each CCR belongs to the Unifi Council of Representatives, the primary governance body which is made up of designated council representatives.

Owners of UNI tokens can stake their tokens to earn rewards from the protocol. These rewards are revenue from transaction activities in other De-Fi platforms in the Unifi ecosystem.

Governance

The ecosystem is a decentralized autonomous organization, meaning users get the chance to participate in the governance of the ecosystem. The users can vote on submitted proposals, or they can submit suggestions on what changes they would like to see on the platform. UNFI token is the governance token for the platform and is used by users to vote on the platform.

Users who stake the Unifi DAO token receive vUNIFI (a non-transferrable ERC-20 token). The vUNIFI token is compatible with the OpenZeppelin governance standard. vUNIFI serves as a receipt to show that the user has staked some UNIFI token, which is redeemable at any time for the original staked UNIF dao token.

For on-chain governance, Tally.xyz and Snapshot.org will be used for off-chain polling, referred to as temperature checks.vUNIFI must be delegated on Tally.xyz for users to participate in the on-chain governance process. User votes can be delegated to themselves or given to a representative who can be anyone to vote for them.

UNFI Tokenomics

The UNFI token has a fixed market cap supply of 10 million tokens, with a circulating supply of just over 5.3 million UNFI tokens. The token is to be shared in the following way:

• 51% of the total market supply is to be shared with liquidity providers and to develop the ecosystem
• 15% to the founders and major developers
• 12% to private sales
• 10.5% to support the ecosystem
• 6.5% to seed sale
• 4% to Binance launch pool
• 1% to the BNB Chain ecosystem

Is Unifi Protocol DAO a Good Investment?

The goal of Unifi aligns with the goal the entire crypto industry is aiming at, and to achieve this goal, they have built an ecosystem that is fully decentralized and serves as a link to several blockchain platforms. The protocol’s future is still unknown, but it has positioned itself to play a crucial part in the industry’s future.

How To Buy UNFI

Users can get UNFI tokens by using the various crypto exchanges out there. UNFI is available on exchanges such as Gate.io. To start trading, users only have to create a Gate.io account and complete the KYC procedure, then review the procedure to buy UNFI on the spot or in future markets once they have added funds to their account.

Take Action

Check out the price of UNFI today and start trading your favorite currency pairs.

• UNFI/USDT