About

Unifi Protocol has evolved from a staking community to a multifaceted blockchain solution, encompassing a bridge and DEX, an AMM with UP rewards, and governance participation through UNIFI DAO. It offers advanced DeFi strategies and decentralized arbitrage solutions across multiple blockchains, including Ethereum, Binance Smart Chain, IoTeX, Ontology, Avalanche, Polygon, Harmony, Fantom, Icon, Tron, and BitTorrent.

History

Introduction

The idea behind the Unifi protocol, despite being launched in November 2020, was conceived a couple of years before when Juliun Brabon started SesameSeed in April 2018. The team at SesameSeed, including Kerk Wei Yang and Daniel Blanco, built SesameSeed into a multi-chain digital asset staking community before deciding to develop an ecosystem that would provide the much-needed building blocks for a multi-chain DeFi universe. Under one umbrella, the team creates interoperable, decentralized and multi-chain products that allow participants maximize to the value from the global DeFi ecosystem. Two of the protocol's biggest products at the moment are uTrade and the Seed Bridge.

uTrade

uTrade is Unifi's custom trading platform powered by an Automated Market Maker (AMM). A group of smart contracts called uPairs drive the execution of multi-token trades, enabling users to trade and provide liquidity with an unlimited combination of tokens. Liquidity providers are properly incentivized by sharing a portion of the platform's revenue generated through trading fees.

Seed Bridge

The Seed Bridge, originally a SesameSeed product, is a trustless cross-chain bridge that permits the transfer of tokens between Unifi partner blockchains. Participants in the Unifi ecosystem can utilize the bridge to connect to EVM-based and NVM-based (Neo Virtual Machine) DeFi products, harnessing trading opportunities across multiple chains.

Protocol Tokens

UNFI Token: This is the governance token that facilitates the global governance model (GGM) of the protocol. The token is stratified into four classes with Class 4 having the least privileges while Class 1 has the most voting rights and privileges. UNFI Class 1 holders can delegate their voting rights to a council representative. They are also eligible to earn staking rewards.

Unlimited Potential (UP) Token: The UP token is a blockchain-specific token earned by liquidity providers on Unifi blockchains. The redemption value of this token is also blockchain-specific. For example, Upeth which is Ethereum's UP variant would have a different redemption value from UPbnb. UP token holders can also swap their tokens between blockchains at a rate established by the open market through uTrade.

uLiquidity (uL) Token: This is held by liquidity providers as proof they have funded liquidity in the protocol or eligible liquidity pools. uL tokens can be exchanged for UP by liquidity providers.

Governance Structure and UNFI Launch

Unifi makes use of a global governance model to enact policies across all participating blockchains. The governing body is made up of two types of representatives: Designated Council Representatives, who represent the team and other strategic partners who are well-informed about the protocol; and Community Council Representatives, elected community members who serve as the voice of other community members. UNFI was launched through an Initial Exchange Offering on Binance Launchpool. 400,000 UNFI tokens were available to mine for a period of 30 days, starting from November 14, 2020. Of the total supply, 51% of UNFI tokens was allocated to liquidity provider pools while the team received 15% of total supply. Also, 18.5% was sold in seed and private sale rounds while 10.5% was earmarked for ecosystem support.