Can the Unifi Protocol (UNFI) make money make from multi-chain smart contracts?

The Unifi Protocol (UNFI) is a group of noncustodial, interoperable, and decentralized multichain smart contracts.

A smart contract is a digital app that performs a task. For example, the smart contract in the Tether (USDT) stablecoin makes payment in US dollars when you spend a Tether. A multichain smart contract operates on several blockchains. For instance, a Unifi Protocol smart contract could operate on the Ethereum and Binance blockchains.

Unifi Protocol smart contracts operate on nine blockchains. Those blockchains include Ethereum (ETH), the Binance Smart Chain (BNB), Harmony (ONE), Polygon (MATIC), the Ontology EVM (Ethereum Virtual Machine), IoTex (IOTX), BitTorrent (BTT), Fantom (FTM), and Avalanche (AVAX).

Unifi Protocol Smart Contracts

The Unifi Protocol smart contracts serve as the building blocks of a suite of DeFi products. The Unifi Protocol DAO (decentralized autonomous organization) is launching a massive upgrade to its DeFi ecosystem.

UniFi Protocol smart contracts include uTrade, uStake, Unifi Report, and uBridge. uTrade is a Swap and Liquidity app that functions as an exchange. uTrade allows pair swaps such as UNFI and BNB. uTrade creates liquidity pools and (liquidity protocol) LP tokens to provide liquidity for the Swaps.

uTrade powers Super Pairs for swaps. The Unifi Protocol DAO makes money by receiving a portion of the trading fee. Super Pair traders also receive a portion of the trading fee. They are building a new version of uTrade they call uTrade V2.

uTrade V2

The uTrade V2 is an Automated Market Maker (AMM). An AMM is a decentralized app that prices tokenized assets with algorithms. The uTrade V2 allows users to maintain custody of their funds. Hence, uTrade V2 traders do not have to give money to uTrade.

uTrade V2 allows access to liquidity. The hope is that uTrade V2 can provide liquidity for small investors. They provide liquidity by building liquidity pools. The liquidity pools reward people who provide liquidity with UP Tokens. The UP Tokens backed by the Unifi Protocol (UNFI) tokens.

The UP Tokens are liquidity rewards. They claim 100% of uTrade V2 trading fees go to the liquidity providers. The current trading fees are 0.3% on most pairs and 0.1% on stablecoin pairs. They will mint 85% trading fees into UP.

They mint around 10% of the trading fees into UP and allocate that UP to uTrade’s Super Pairs. The Super Pairs are liquidity pools with additional incentivization from rewards generated by trades in the uTrade V2 blockchain.

uniTrade V2 can provide liquidity through six blockchains. Those blockahins are Ethereum (ETH), Harmony (ONE), Binance Smart Chain (BNB), Icon (ICX), Ontology (ONT), and TRON (TRON).

Since uTrade V2 is decentralized and open sourced, so any designer can build decentralized apps (DApps), bots, and other applications for it.

uStake

The Unifi Protocol offers staking on multiple blockchains through uStake. They claim the uStake was staking $8.875 billion digital assets on 1 August 2022. They also claim uStake was generating an average APR (annual percentage rate) of 14.868% on 1 August 2022.

Unifi claims users can participate in decentralized finance (Defi) by staking. They claim Unifi creates a blended ecosystem that contains stakers, liquidity providers, lenders, and other platforms. Unifi claims 5,909delegators were participating on uStake through five nodes on 1 August 2022.

They claim uStake had $3.446 million total value locked in 416.897 million UNFI on 1 August 2022. Similarly, they claim 456 delegators had $512,330.32 total value locked in ICON on 1 August 2022. Unifi claims uStake was paying an 21.05% APR on UNFI, a 12.43% APR on ICON, and a 6.7% APR on IOTX on 1 August 2022.

The Unifi Report dashboard estimates the Unifi Protocol ecosystem contained 465 pairs that generated a $244,200 24-Hour Trading Volume and $12.24 million Total Value Locked on 30 July 2022.

uBridge

The uBridge builds a direct connection between blockchains. For example, between Fantom and Binance Smart Chain.

All users have to do to connect with uBridge is to click connect and you can connect UNFI to any of the supported blockchains. For example, you can use uBridge to transfer your Ethereum (ETH) assets to Binance or Avalanche.

Governance of the Unifi Protocol

The Unifi Protocol (UNFI) offers several governance tools. Those tools include a dashboard that allows users to buy UNFI, make transfers and migrations, and stake and claim rewards.

To govern the Unifi Protocol DAO, they will create a Council of Representatives. The Representatives can propose changes to the DAO and vote upon them.

There will also be community referendums that allow all UNFI holders to vote on issues. Referendums will power the Global Governance Model (GGM) that controls the election of representatives.

Any tokenholder who has five UNFIs connected to an Ethereum address can propose a referendum. Anybody with at least one UNFI token can vote in the referendums.

What Value does the Unifi Protocol (UNFI) have?

The Unifi Protocol (UNFI) claimed to have staked 416.897 UNFI worth $3.402 million on 1 August 2022. Additionally, users had claimed users had claimed 87.078 UNI worth $710,557.70 by 1 August 2022. They claim UNFI tokens offered a 21.05% APR on 1 August 2022.

Meanwhile, Mr. Market has a strong interest in Unifi. CoinMarketCap named the Unifi Protocol DAO (UNFI) the 13th most trending cryptocurrency on 30 July 2022.

In contrast, the Unifi Protocol DAO was CoinMarketCap’s 469th largest cryptocurrency, with a Coin Price of $8.19 on 1 August 2022. CoinMarketCap gave the Unifi Protocol DAO an $36.621 million Market Capitalization, an $81.930 million Fully Diluted Market Cap, and a 24-Hour Market Volume of $70.229 million on 1 August 2022. They base those numbers on a Circulating Supply of 4.470 million UNFI, a Maximum Supply of 10 million UNFI, and a Total Supply of 8.629 million UNFI.

Comparatively, CoinBase gave the Unifi Protocol DAO (UNFI) an $8.17 Coin Price, a $36.5 million Market Capitalization, and a $70.20 million 24-Hour Market Volume on 1 August 2022. They based those numbers on a Circulating Supply of 4.5 million UNFI. Unifi is an unstable cryptocurrency with an all-time high Coin Price of $43.91.

I think the Unifi Protocol DAO is worth investigating because speculators are running money through it.