}
TL;DR
- UniLend is launching permission-less flash loans for advanced DeFi Strategies
- The UFT token will acquire many new utilities with the launch of UniLend’s flash loans
- UniLend’s flash loans with optimized transaction cost and fees will outcompete Aave’s flash loans
- UFT will be the first token users can use, to provide liquidity for flash loan pools, at product launch
- 50% of Aave’s income comes from flash loans. We expect to receive liquidity much more quickly being that our flash loans are more competitive
- UniLend- aims to be the #1 flash loan provider in the industry by welcoming every token to our platform
- DeFi is quickly evolving, and UniLend is innovating continuously
Recently we’ve received a substantial amount of excitement surrounding the coming UniLend Beta release of our protocol. What our community is not aware of is another feature we’ve been working on in stealth which will enable our protocol to tap into a huge untapped market.
Flash Loans are the first uncollateralized loan option in DeFi! Designed for developers, Flash Loans enable you to borrow instantly and easily, no collateral needed provided that the liquidity is returned to the pool within one transaction block.
If this does not happen, the whole transaction is reversed to effectively undo the actions executed until that point. This guarantees the safety of the funds in the reserve pool. Use-cases include arbitrage, collateral swapping, self-liquidation, and many more.
Welcome UniLend Finance’s permissionless flash loans! This will bring a great amount of liquidity to our platform which will help bolster our TVL and provide smoother user experience on our flagship product launch. Now users will have the power of flash loans at their fingertips, enabling DeFi strategies like advanced collateral swapping, arbitrage and self-liquidation protection.
Our community will be able to stake their holdings of UFT to enable flash loans and earn an APR for staking UFT. This will give added utility to UFT which we believe will make holding UFT that much more appealing.
Our flash loans functionality will be launched on our protocol very soon, fully functional and ready to use for various powerful DeFi strategies.
Please take note, as shown below, that nearly 50% of Aave’s market income is from flash loans. We’re confident that adding this feature to our arsenal will bring users and capital flowing into our protocol quickly. We believe that DeFi protocols should support flash loans for more assets, so we’re going to make it a reality.
50% of Aave’s market income is from flash loans.
Soon we’ll update the community with another article about the technical aspects of our flash loans and how they will be better than currently available options.
History & Power of Flash Loans
Most DeFi users have never used a flash loan, but if used properly, they can facilitate new and innovative DeFi strategies. Some of the first providers to make flash loans popular were the Aave and dYdX platforms.
Flash loans were the first uncollateralized loan option in DeFi. These loans were designed for developers, which enabled them to borrow instantly and easily, without the normal amount of collateral needed: provided that the liquidity is returned to the pool within one transaction block with the addition of fees being paid for using the tool.
In the case that the borrowed liquidity is not returned within one transaction block, the whole transaction is reversed to effectively undo the actions initiated until that point. Please take note that users will be required to pay the cost of gas while making these transactions. This design is very important because it guarantees the safety of the funds borrowed from the reserve pool.
Example Use Case Scenario for Flash Loans
We imagine there are many types of use cases for flash loans not yet envisioned, though there are a couple that are practiced currently, such as assisting with arbitrage opportunities. For instance, one may want to take advantage of price discrepancies between two protocols.
In this case, if DAI is cheaper on one protocol than it is on another, for example, you may take a flash loan to purchase DAI cheaper on said protocol to then swap it for a different stablecoin like USDC on another protocol that has the stablecoin at a higher value.
These transactions, if done correctly, should leave the user with more stablecoins than they started with. The user can then repay the loan back and keep the additional stablecoins as profit. The user will need to initially calculate the cost of gas, price slippage, frontrunning and network fees into the equation to make sure they are profitable in the end.
This may sound complicated, but these types of transactions happen often and have been very lucrative for many users. Like we said before, using flash loans is for more advanced DeFi users, but fairly simple to learn.
DeFi: The New World
While the DeFi world takes aim at higher TVLs and more innovative ways to create wealth, UniLend continues to work hard to push the boundaries of DeFi. We understand that this space is new and many applications for DeFi have not been thought of, though we believe we’ll continue to stay on the cutting edge of creating new solutions that empower our community.
Our team is grateful for the energy our community brings. This enthusiasm helps us realize how important our goals are. Flash loans are just the beginning of a long line of power tools that will soon be at your fingertips; we will be spinning up many more impactful tools for everyone to utilize.
We encourage everyone to join our social platforms to stay up-to-date with all our future announcements. The DeFi space is quickly evolving, so it may be helpful to stay connected to a community that’s ready to help you along the way. We also appreciate those that join in on the conversation, so please don’t hesitate to click the links below to be part of our movement.
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