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How does UnUniFi work?. replace: 09/10/2022 | by UnUniFi Protocol


What’s the UnUniFi protocol?
UnUniFi is a Layer1 blockchain protocol for offering environment friendly NFT lending via an inner NFT market within the Cosmos Ecosystem.

Technical Breakdown:


1) Borrow crypto belongings with NFTs as collateral

When NFT Holders create a CDP (Collateralized Deposit Place) with NFTs as collateral, the NFTs can be exhibited on the UnUniFi market.

Why “q” is the collateral & settlement value

The i th highest bid value is denoted as p_i.
n is a parameter decided by the NFT exhibitor. The default worth is n=10. On this system, bidders need to deposit their steadiness in proportion to the bidding value. The deposit quantity of the bidder of the i th highest bid value is denoted as d_i.
We outline that:


2) Bidding

Anybody can bid with tokens designated by the NFT exhibitors. Patrons could make a bid for the NFT they want to purchase, and might cancel their bid as wanted. Patrons could make a bid anytime by including the buying belongings for bidding upfront. The deposited bidding tokens can be locked whereas the bid is dwell.

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3) Settlement with exhibitor’s choice

Naturally, the very best bidder can purchase the NFTs if the vendor wish to promote. The first highest bidder should pay p_1- d_1 through the interval of cost. If he fails to take action, his deposit d_1 can be forfeited and he can be faraway from the bidders.

4) Liquidation

Within the case of the exhibition methodology the place potential consumers must make a bid with a specific token, observe {the marketplace} just isn’t affected by market fluctuations and settlement will happen solely when the extension price can’t be paid. Within the case of the exhibition methodology that permits the potential consumers to make a bid with any token, observe that when the worth of the crypto asset that serves as collateral for the stables (= crypto asset used for bidding) declines, the collateral worth declines and a settlement could happen.
※If the vendor doesn’t wish to lose the NFT with a time restrict, he/she will purchase it again at a better value than the public sale’s present most bid.

・Isn’t it p2p matching like
It’s not a p2p matching system like Within the, there are restrictions like the place it’s important to wait till you discover somebody who desires to borrow towards your NFT and suggest the perfect phrases for you. Nevertheless we, UnUniFi, can mix the liquidity of the demand for the NFT itself and the liquidity of the demand to the European Name possibility of NFT, so NFT holders can entry lending quicker than a p2p mannequin.
Moreover, market maker performance within the UnUniFi market can deliver a number of the professionals that exist within the peer to pool mannequin, merging them into our mannequin.

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