A Novel Approach to Lending Pools is Being Introduced
UniLend Omnis is a DeFi revolution. UniLend is committed to ensuring that all assets are productive. To enable money markets for all assets, the team has been working on permissionless lending and borrowing. Omnis is more than simply a UniLend technology update. To realize our vision, we have experimented with a variety of novel ways.
This project will help members of the Unilend community gain a better grasp of UniLend Omnis and how it operates.
Isolated Dual Asset Lending Pools
For the first time in DeFi, Omnis makes it possible to create a lending/borrowing pool for practically any token-to-token (e.g. ERC20/ERC20) crypto asset pair without requiring authorization. This means that anyone can engage with the Unilend protocol and take use of a variety of novel DeFi tactics enabled by the permissionless listing of practically all crypto assets.
Lenders will now be able to receive a risk-free interest on a variety of crypto assets and tokenized assets. Furthermore, users may instantly deposit their tokens on UniLend Omnis or even build their own pool if one does not yet available.
Borrowers can use collateral to leverage lent assets. Users that want to communicate with other protocols by borrowing their native assets without losing their existing positions would benefit from this.
How Will The UniLend Dual Asset Pool model work?
Any user can construct any ERC20/ERC20 pool in UniLend’s permissionless money market and start lending and borrowing for those assets. UniLend V1 money market is now operational on Ethereum, Polygon, and Binance Smart Chain, three of the most popular blockchains. UniLend Omins will be available on the aforementioned chains as well as others.
The UniLend team devised an original Isolated Dual Asset Pool concept to enable the money market for such volatile assets, which means that each crypto asset pair will operate as an independent pool with no cross-collateralization.
This isolated model provides a higher level of security because the volatility of a single item does not affect the entire protocol (unlike Aave, Compound, or other money markets that use a cross-pool method) and is limited to a single (or few) pool.
Let us understand this better with an example.
- Alice has 10 ETH, and she wants ENS for farming and a position in USDT for a long. However, she is bullish on ETH 2.0 and doesn’t want to sell her bag.
- Alice deposits 5 ETH in ETH/ENS and ETH/USDT pools each & borrows ENS and USDT.
- If ENS spikes in price, and Alice is at risk of liquidation, then only 5 ETH allocated to ETH/ENS pool will be liquidated.
- The other 5 ETH in ETH/USDT pool is entirely safe from being liquidated.
There will be a huge protocol change with UniLend v2: Omnis, which will redefine how DeFi leads the future financial infrastructure for money markets.