Review Unreal Finance ($UGT) A platform where users can lock in fixed interest rates for both lending and borrowing

Unreal FInance is a decentralized protocol that allows users to tokenize the yield generated by popular lending protocols such as Compound, Aave, United, etc. By tokenizing their yield users can lock in their interest rate thus getting a fixed interest rate. Another high-demand use case is yield speculation.

What is Unreal Finance?

Unreal Finance is a yield futures platform that allows users to tokenize their future yields via smart contract interactions. This enables lenders to lock in their interest rates, speculate on & trade interest rates across multiple protocols, enable interest rate arbitrage between different protocols, or be able to sell their interest early.

Outstanding features

What is the project trying to achieve?

In traditional finance, lenders are able to trade loan contracts based on collateral and interest associated with the contract to either add risk or de-risk their positions.

By tokenizing interest rates, users can lock in fixed interest rate yields and are able to freely trade their interest upfront, unlocking additional fund utilization for their collateral in a decentralized manner.

This allows for 2 routes of decentralized lending: uncollateralized loans and fixed interest rates on yield.

Unreal Finance enables these features through UTokens (synthetic protocol tokens) and UOS tokens (ownership tokens of Unreal Finance).

Protocol

To allow decentralized lending protocol users to set a fixed interest rate on their yield for a fixed period of time, they will deposit their yield token (cUSDC, aDAI, etc.) into the Unreal Smart Contract. Two tokens will be issued: UToken and UOS.

UToken

UToken is a synthetic token minted by the protocol. UToken represents the future yield that will be generated. For example, a cUSDC-UToken represents the future yield generated by our capital inside Compound’s USDC lending pool. A UToken is just an ERC20 token and there are various ways to trade this synthetic token on Ethereum.

UOS

UOS is the Ownership Token for Unreal Finance. A user receives UOS tokens equivalent to the amount of underlying asset deposited. For example, 100 cUSDC deposited on Unreal Finance will generate 100 cUSDC-UOS tokens. The user can redeem the UOS for an equivalent amount of underlying tokens from the contract when he wants to exit.

What is the unique selling point?

Unreal Features

Unreal Finance is equipped with all the features required to facilitate an array of cutting-edge DeFi use cases and a strong, engaged participant ecosystem.

Margin Trading

Unreal allows users to get access to future yield instantly. Users can use that future yield to double down on their deposits and generate extra yield.

Fixed Interest Rate

Unreal finance allows you to get a fixed interest rate on your deposits by selling your synthetic yield token that represents the yield generated by your deposit.

Yield Trading

Currently, no product on Ethereum allows users to speculate on yield generated by the protocol, unreal finance creates a new defi primitive for such products.

Interest Rate Swap

Unreal finance yield tokens allow traders to arbitrage between multiple lending markets making the market more stable and generating more yield.

Governance

The protocol will be governed by its token holders through proposals in order to ensure adjustments to the protocol are made with a majority consensus.

Yield Insurance

Unreal finance allows the creation of new products on top like yield insurance that allows people to deposit and buy a minimum yield guarantee

Use Cases Explained

Fixed Interest Rate

The interest rates on current lending protocols fluctuate regularly. But suppose Alice wants to earn a fixed interest rate, she can use Unreal Finance. Alice deposits her interest-bearing tokens to Unreal Finance and mints UToken and UOS tokens. Alice can instantly sell the UToken at the exact yield she requires.

Yield Arbitrage

Unreal provides arbitrageurs more opportunities to generate profit with minimal risk. Arbitrageurs can now arbitrage between different yield sources like Aave stable rate, a new yield farm, and Unreal Finance and make profits while making the market more stable.

Capital Efficient Yield Exposure

Currently to obtain yield exposure you need to deploy capital that will generate the yield. For example, if you think LINK lending rates will increase you must deposit and lock LINK to get the yield benefits. But using Unreal Finance, if a trader holds the view that lending rates on LINK will continue to increase, he can simply buy UTokens from the market as UTokens are synthetic yield tokens and track the yield itself.

Build on Unreal Finance

Unreal Finance brings new decentralized finance primitive into the market that allows people to speculate on capital yield. It can allow for the creation of several new products like interest rate swaps, spread trading, yield protection products and so much more!

Compared to competitors

While there are a limited number of other projects focused on maximizing yield in a similar way to Unreal Finance, all of their competitors fall short in multiple areas relating to functionality and design. Therefore, they fail to deliver a product that is able to accelerate the DeFi space to its next phase of evolution in a way that is comparable to Unreal.

The Unreal Finance protocol has been meticulously designed from the ground up to provide comprehensive functionality and a superior user experience, thereby unlocking yield generation opportunities for the DeFi community to an extent that is unmatched by any other player in the industry.

User Journey

• Users mint UToken and UOS through Unreal Finance by depositing yield tokens. UOS represents ownership of the underlying yield token, and UToken represents the future yield of the underlying yield token.
• The Minter can sell the UToken via any popular AMMs or can add liquidity to the UToken pair.
• UTokens act like a regular ERC20 token — that is, it can be purchased or sold. After the change of ownership has occurred, the entitlement of subsequent interest revenue tied to the underlying yield token will be changed to the new UToken owner.
• The UToken and UOS token can be easily converted to the underlying asset.

Roadmap 

Technical data

Key metrics 

UGT is the native token of the Unreal Finance protocol and the backbone of the Unreal ecosystem, which carries a variety of use cases.

• Token Name: Unreal Finance
• Ticker: UGT
• Blockchain: Ethereum
• Token Standard: ERC-20
• Contract: 0x9cf98eb8a8b28c83e8612046cf55701ce3eb0063
• Token type: Governance
• Total Supply: 200.000.000

Token allocation

Token release schedule

• Seed: 5%; 0% unlock at TGE, 10% unlock after 1st month, linear unlock from 4–12 months
• Strategic: 4.67%; 15% unlock at TGE, linear unlock from 4–12 months
• Private: 7.90%; 20% unlock at TGE, linear unlock from 4–12 months
• Genesis Shards — Pre-IDO: 0.45%; 20% on TGE, 20% monthly vesting for 4 months
• Public IDO: 1.25%; 100% unlock at TGE
• Ecosystem: 15%; 0% unlock at TGE, Unlock from 1–18 months
• Protocol Rewards: 20%; 20% after one month, unlock from 2–24 month
• Marketing: 10%; 2% on TGE, equal unlock from 1–18 months
• Reserves: 14%; Quarterly unlock over 12 months
• Community: 5.73%; Linear unlock from 1–17 months
• Exchange & MM: 1%; Unlock at TGE
• Team & Advisors: 15%; Linear unlock from 4–24 months

Token use case

• Governance: UGT holders will be able to participate in on-chain governance proposals for the protocol.
• Fee Discounts: UGT holders also receive massive fee discounts while utilizing the protocol.
• Rewards: UGT holders are able to receive management fees, protocol rewards, and other rewards given to token holders. 
• Staking: Users can earn higher rewards by staking UGT or providing liquidity across AMMs.

Token sale

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More information at: CLICK HERE

How to own the token?

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Market and Community

Market

The global lending market size is currently over $6.9 trillion with a compounded annual growth rate of 14.8%. However, the market size of decentralized lending protocols on Ethereum is $47 billion, which represents only 0.7% of the total global lending markets.

Enabling a higher fund utilization ratio for decentralized lending unlocks a tremendous amount of liquidity that can be freely traded through the ecosystems, thus helping to stabilize yield and further mature the ecosystems that support the building blocks within decentralized finance.

Since Unreal Finance can integrate any decentralized lending protocol, beginning with those based on Ethereum, the Total Addressable Market (TAM) of Unreal is the combined TVL (Total Value Locked) of all such protocols, currently sitting at $47 billion. This will increase in the future as we become a multi-chain protocol.

The total value locked (TVL) on the lending protocol is worth around $20 billion currently and this number is only going to grow in the future. Since Unreal Finance is not competing with lending protocol but rather acting as a layer on top of existing protocol to manage Yield efficiently, the total addressable market size (TAM) is as big as the entire decentralized lending space.

Community

Unreal Finance has crossed the mark of 13,400 Followers on Twitter

Backers

Team

Panters

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Verdict

Unreal Finance is creating a new niche in the market which has largely been untapped in the DeFi industry. They believe their efforts will not only revolutionize the decentralized lending space but also level the playing field in the market by bringing more tools into the space of decentralized lending.

Find more information about Unreal Finance:

Website: https://unreal.finance/

Whitepaper:https://drive.google.com/file/d/1z3xemPXj877jvB6lKfHY931Iz7mHGtMQ/view

Twitter: https://twitter.com/UnrealFinance

Telegram: https://t.me/unrealfinance

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

Elise

Coincu Ventures