Unbound Finance Will Soon Allow Stablecoin Borrowing Against Uniswap LP Positions on Arbitrum

With Unbound, Uniswap V3 LPs can borrow Unbound’s stablecoin, UND, interest-free, secured against their concentrated liquidity positions.

AccessTimeIconApr 3, 2023 at 10:47 a.m. UTC
Updated Apr 3, 2023 at 4:03 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Decentralized-finance platform Unbound Finance will launch its version 2 on the Arbitrum One mainnet on April 11, offering liquidity providers a chance to access higher returns by using their LP tokens as collateral for loans on Uniswap, developers told CoinDesk on Monday.

This makes Unbound V2 among the first protocols to offer collateralization of Uniswap V3 positions, making it easier for LPs to earn more from their capital. As of Monday, billions of dollars are supplied as liquidity to Uniswap from DeFi users, according the on-chain data.

With Unbound, Uniswap V3 LPs can borrow Unbound’s stablecoin, UND, interest-free, secured against their concentrated liquidity positions. This feature allows users to continually earn rewards from Uniswap while being able to take out loans – which can be used for other DeFi applications.

Unbound version 2 has been running successfully on the Ethereum Goerli network test network since last October.

In addition to Uniswap V3 positions, Unbound is also expanding collateral support to LP tokens of relatively volatile asset pools, such as WETH-DAI. The version 2, however, will introduce price stability mechanisms that automatically liquidate or redeem loaned positions to ensure UND’s value remains stable and closely aligned with its intended $1 peg.

Edited by Oliver Knight.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.