Unifi protocol provides the building blocks for the next generation of DeFi development. DeFi stands for Decentralized finance whereby there is the existence of achieving financial services from the usage of smart contracts. The financial services offered are usually developed on top of blockchain systems. DeFi provides a number of services that include monetary banking services, borrowing platforms, and also provide financial instruments.
The Unifi Protocol unifies the multi-chain Defi world through the SEED Bridge therefore enabling it to be multi-chain. With DeFi technology we get to have a more advanced financial system in that there is a shift from traditional and centralized systems to decentralized technologies. The Unifi Protocol does feature a governance token that is shared at a fee, a loyalty program that has also been put in place whereby tokens are rewarded and there is also a lending platform program.
Sesameseed developed Unifi Protocol to bring their innovative technology solutions to all their represented blockchains. It also adds great value to each blockchain allowing developers to build a range of products and services around the smart contract-based building blocks of the protocol. A percentage of the fee derived from the Unifi Protocol is used by smart contracts to buy SEED from the market.
Users of the Unifi Protocol are turned into SEED holders, therefore, increasing the exposure to Sesameseed and SEED. The SEED token plays an important role in the Unifi ecosystem. UTrade which is a trading platform using the Unifi Protocol will be used to automatically market buy SEED and subsequently reward that SEED to uTrade users. The feature has the following benefits for SEED holders:
- Sustained buy pressure for SEED on the market from a recurring revenue stream.
- Increased exposures to Sesameseed and SEED to all users of the uTrade platform.
- There will be exposed to additional digital asset holders and traders which raises awareness of Sesameseed and SEED, this benefits the community. Unifi Protocol also relates to other trading platforms; a good example is uTrade which is built to utilize the Unifi Protocol. Sesameseed is dedicated to its community as the foundational element in its mission for fair and democratic blockchain governance. Sesameseed provides numerous benefits for SEED holders, the increasing benefits are the motivating factor supporting the entire SEED reward community.
uTrade is known to be a trading platform that is majorly built utilizing Unifi Protocol. It does operate as a decentralized unlimited liquidity market marker. In this case, one token is exchanged for another, therefore, utilizing liquidity provided by incentivized liquidity providers. uTrade is better than other trading platforms in so many ways, below are some of the characteristics that make it better:
- Liquidity providers continue to share in fees as long as they hold the UP tokens even after the liquidity is withdrawn.
- The liquidity providers share a portion of the revenue generated by the entire Unifi Protocol. They are also not limited to share of fees earned solely from a specific trade pair.
- uTrade will allow for the non-custodial trading of tokens from different blockchains.
- Traders do enjoy all the benefits of holding SEED such as daily compounding.
Below are some of the benefits one can achieve from the UP tokens:
- The number of the base tokens that the Unifi Protocol returns in exchange is the redemption value of UP tokens.
- Every time the UP token is minted the redemption value usually increases in number.
- The Power UP Rate is the tokens generated from the minting process of the UP, the tokens usually raise the UP Rate value.
UP token holders get to receive a percentage share of fees that have been taken from other Unifi Protocol platforms. These platforms are created by any developer with the help of the Unifi Protocol.
uLend is also a lending platform that is built with smart contracts that are based on Unifi Protocol. The uLend platform allows the holders to preserve a further share of revenue generated from the Unifi Protocol. In most cases, the uLend provides an opportunity for someone to take a secured loan from one blockchain and utilize the SEED Bridge from the fund received.
A good example of how uLend provides a collateralized loan is when a uLend user takes a loan and uses it in the market movement of an Ethereum token. In uLend trading, you can also come up with loan products that will temporarily obtain value from the other collateralized tokens.