Thanks all for participating in our Unifi Protocol AMA. We really appreciate all your support. There were really good and thoughtful questions that were asked. For those who missed our AMA, this blog post is for you.
Mayank – Hello @SteveGreen416 welcome to CryptoNationIN 🥳
Steve – Hello everyone! So unfortunately Juliun was busy at this time, but I am very excited to be here with you. I am the Project Manager with Sesameseed and Unifi.
Mayank – Could you please tell our community about the Unifi Protocol.
Steve – Definitely. Unifi Protocol is a group of non-custodial, interoperable, decentralized, and multi-chain smart contracts providing the building blocks for the next generation of DeFi development, focusing on building a community-driven ecosystem of governance and innovative DeFi products.
That’s just a fancy way of saying its a group of smart contracts designed for DeFi and for people to use.
We developed Unifi from the ground up as a series of smart contracts similar (but not a copy) to other Defi Exchanges, that allows for individuals to provide liquidity and earn a share of the protocol fees in a sustainable way.
Mayank – Amazing 🥳
Q1. I have read about proposals offered by the platforms to establish an innovative community governance model….. what kind of governance model does Unifi use and how does the community promote this governance?
Steve – This is a questions that everyone is wondering about! We have slowly been releasing more and more information about it – in fact, we just released the UNFI Litepaper on our website!
It’s actually a two-tiered system. Blockchain-specific governance decisions can be decided by UP tokens holders, but I think you were asking about UNFI. We actually just released our UNFI Litepaper the other day – it’s available on our website. It has some more information about our global cross-chain governance token,UNFI. Over 55% of the token is allocated for the community to obtain just by using the platform and participating in its governance.
So Unifi will be acting like a DAO because UNFI token holders will influence the decision making and evolution of the platform through voting and proposals. Of course, they would also be rewarded for doing so.
Q2. What is really the mission and vision of this Unifi Protocol project? Is it simply to develop a platform that provides greater liquidity to users and in various chains other than ETH?
Steve – Oh, Unifi will be coming to Ethereum though 😉
When building Unifi, we really thought through the existing systems (balancer, uniswap, bancor) and identified some areas we could improve to make the economy surrounding these systems more sustainable. Some of the most important changes we made were to our rewards mechanism, which unlike other protocols happens entirely on chain and is managed by the smart contracts.
This mechanism also allows the value of the rewards that individuals earn to increase over time. The value it can be redeemed for on each chain can literally never go down! You can verify this in the smart contract, or take a look at our website for the live tracker. It goes up a little bit after each trade.
In addition, Unifi is designed to be a cross-chain Defiplatform allowing communities from different blockchains to easily move into and out of different ecosystems. We want to bridge all the token economies together in a decentralized and trustless manner, and we hope to accomplish those lofty goals this quarter.
Q3. What liquidity model will Unifi Protocol use to increase token value? Can you explain the structure of the Unifi Protocol, What is the main focal point of your platform? Who is your target market? why investors should pay attention to Unifiprotocol?
Steve – Every time an UP in minted, the amount of native tokens it can be redeemed for goes up. So it’s redeem value can literally never go down. Some of our community members have said this has really helped them prevent impermanent loss when using our Defi product. We launched on Harmony yesterday, and UP started at 1 ONE. It can now be redeemed for over 8 ONE each, I believe. That’s what I mean (on the market, it may sell for more of course).
As for the Protocol, Unifi is completely different from all the other clones out there. We offer sustainable (key word: sustainable) tokenized rewards that are 100% backed by funds governed by smart contract. As well, we are not just one product, we are an entire cross chain protocol, which means an unlimited number of products can be built using our smart contracts, and our token holders still benefit no matter who develops them. Our governance model is unique, with migration between liquidity mining on any blockchain and cross chain governance participation.
And that’s why I believe people should be paying attention to Unifi.
Q4. Are there rewards for participating in governance decisions and proposals? What actions should users take to maximize their reward income regarding the Unifi participation system?
Steve – Definitely! So if you take certain actions with your UNFI, over time you will earn the right to vote on proposals, which will reward you with more UNFI. Over more time, you’ll earn the right to even make proposals – and that will also earn you more UNFI rewards.
To maximize your chances of earning the most rewards through the governance model, I would start mining UP now, by depositing liquidity on any or all the blockchains we have already launched on! The reason for that is because there is a third way to earn UNFI rewards – by migrating UP tokens that have been earned from liquidity mining. And the longer you wait, the less UP you will be able to accumulate as its redeem value goes up and up. BTW, there is a great diagram of all that in the unfi litepaper on our website.
Q5. What is UTrade? How does uTrade work? Why is uTrade better than the existing trading platforms?
Steve – UTrade is the trading platform built using the Unifi Protocol smart contracts. It’s a completely different liquidity mining experience compared to other platforms. The tokenized rewards dont face the same limitations that other platforms do when they only rewards in native tokens. Our UP token is 100% backed on chain by funds completely goverened by smart contract. Every time new UP is minted, it’s redeem value goes up. UPtrx went from 1 to over 6, UPone went from 1 to over 8…
Not only that, UP has yield farming built right into the token! Once you earn UP, it starts collecting a fee from every trade that happens in every pool on the entire platform. I don’t know if any other liquidity token offers that incentive!
We also offer a bonus to traders as well. They earn SEED as a rebate for each trade. This token, once it’s in your wallet, starts staking automatically on three different blockchains, with more chains being added. A trading rewards which automatically compounds for more rewards daily is something unique.
Finally, there is the UNFI cross-chain governance token, which can be obtained through the liquidity token UP. So using uTrade allows you to participate in its governance.
Q6. Will you do token burning and buy backs to greatly decrease the token supply and increase token value?
Steve – Yes! Great point. UP token is designed to be burned actually, every trade mints some amount of UP for the liquidity providers of that pair. a portion of the trading fee is reserved from every trade to increase the redeemable value of UP. Since UP is a 100% reserved token, Meaning it is actually backed in smart contract by an amount of ONE (which increases with every trade) if users burn it they receive the ONE that is backing it, which further increases the rate at which the redeem value increases. Its a sustainable cycle.
Q7. Could you tell us about your tokenomics? Unifi Protocol involves four types tokens: UP, uL, SEED and UNFI. What makes them unique and what role do they play in your protocol?
Steve – I highly recommend everyone take a look at our Medium blog, theres a great article on how all the different tokens work together.
Q8. As uTrade is built with the UNIFI protocol, anyone can develop a project with this protocol, in which they can modify the amount of UP that will settle or use fees? or is that already established and cannot be modified?
Steve – This is a great question noone has asked before. Love it . Let me answer!
Q9. As UTrade is built with the UNIFI protocol, anyone can develop a project with this protocol, in which they can modify the amount of UP that will settle or use fees? or is that already established and cannot be modified?
Steve – The Protocol is not just a single product on a single blockchain. Its a group of smart contracts that any developers can use to build any type of product on multiple different blockchains, and UP/UNFI token holders benefit. The minting process of UP cannot be changed. That’s coded right into the smart contract. But other variables can be reconfigured.
Q10. The Ethereum blockchain is having some problems with its transaction speed and high gas fee,but why does UNFI still use Ethereum blockchain?Do you have any plans to launch your mainet or convert to other blockchains in the future?
Steve – We’ll be on lots of blockchains, connecting them all together!
Q11. Too many projects promise magic but never release any working product or prove any revenue, Within a short/long time of release. Is your project also like this? If not can u tell us, What makes your project different from other projects?
Steve – Go back and read my answers about sustainability 🙂
Q12. Unifi Protocol was audited by SlowMist and you have strived to put all of your activities on chain and in smart contract. How can users have an access to the audit report?
Steve – Its on our website, together with the UNFI litepaper!
Q13. Really “Redeem UP tokens is an irreversible transaction”? why do it like this? So, I can not exchange and then generate liquidity again with that capital depleted in uL or UP?
Steve – This is part of the UP token burn process and benefits all UP token holders to make the redeem value go up.
Q14. Besides from UNFI and UP token, uTrade also has SEED token which play a vital role on its platform, Can you explain more about this SEED token? And why do we get the SEED tokens as a bonus after we do trade on uTrade?
Steve – I loooove talking about SEED haha. One of my favourite tokens. It’s Sesameseed’s rewards token, so when we developed Unifi Protocol smart contracts, of course we made it compatible with our token. I recommend everyone to learn more about Sesameseed, i think you will be amazed. No, i KNOW you will be amazed haha.
Q15. Each of Unifi’s investors, advisors, and strategic partners were carefully selected. How do you select your partners? What are you looking for in Unifi Protocol partners?
Steve – They believe in the project and think it can revolutionize the industry.
Q16. Unifi protocol has very interesting exchange. I’m sure many people from all over the world would like to take part in the development of Unifi protocol, but there are difficulties with the language barrier. When will $Unifi protocol add multilingual projects?
Steve – Its already translated into Korean, Chinese, and Spanish. Come join the group and let the admins know which language you’d like to see next!! That would be awesome.
Q17. HOW DOES STAKING FEATURE OF UNIFI WORKS and What are its Unique Features?
Steve – more info on that later 😉
Q18. Is your project Unifi Protocol somehow related to the project called Unifi DeFi? The name of the tokens is similar too.
Steve – Nope. Check the dates of when we released our whitepaper, and you’ll see 😉
Q19. What is the difference between Multi Chain and Cross Chain ? How do you think about cross-chain technology? Unifi Protocol features cross-chain swap interoperability. Without using an intermediary party in the process ,how can Cross-Chain Swaps between public and private network?
Steve – A great question!
We will be both! We will exist on multiple chains (multi chain) and then we will connect them all together for decentralized and trustless swaps (cross chain).
Q20. What are the tools that Unifi offers developers to allow them to build a range of products and services? Why should developers build on Unifi?
Steve – we have a developer bug bounty on Gitcoin btw. Ask about it in our channel.
Thank you to Steve Green, and Community for participating in the AMA. Have a nice day