Cross-Chain Lending

In today's decentralized finance landscape, when users provide collateral in a lending protocol on a specific blockchain, they are limited to borrowing assets available within the same blockchain. If they wish to borrow assets from a different blockchain, users must first withdraw their collateral, transfer it to the target blockchain, and then provide liquidity within the collateralized pool on the new blockchain.

Unitus, on the other hand, revolutionizes this process by allowing collateral from one blockchain to support USX loans on a different blockchain. This innovation provides users with a seamless and efficient experience while expanding their access to a broader pool of liquidity.

How It Works?

Unitus makes it possible for users to explore yield opportunities across multiple chains without the need to move their collateral cross-chain. You can supply assets as collateral on one blockchain to borrow different assets on another using USX as the liquidity conduit.

USX, an over-collateralized stablecoin backed by dForce, operates on multiple networks. It facilitates seamless cross-chain transfers with only gas fees.

This setup offers high flexibility and capital efficiency, allowing for unrestricted loan sizes, provided your collateral doesn't exceed the supply cap on the target blockchain and you have sufficient collateral assets to secure your borrowing. This boosts capital efficiency by utilizing idle assets across various blockchains for the maximum benefit of users.

As an example, let's say you decide to supply ETH as collateral on Arbitrum to borrow USX. You can then bridge USX to Optimism at virtually no cost, with only gas fees to consider. Next, you can use USX as collateral on Optimism to borrow USDC. Since USX and USDC are stablecoins with a closely correlated value, you can borrow up to 99% of the transferred value from Arbitrum. This means that your collateral on Arbitrum becomes incredibly efficient for use on Optimism, allowing you to maximize your utility across different chains.

USX

USX is a decentralized stablecoin launched by dForce on multiple blockchains with a soft peg to US dollar.

USX is integrated with many DeFi protocols and applications, readily available on decentralized exchanges and lending platforms. It offers various use cases and yield opportunities for users, making it a fundamental asset in the DeFi ecosystem.

Unitus has integrated with USX to facilitate cross-chain lending. To participate, users need to deposit crypto assets with a value greater than USX amount they intend to borrow. This measure serves as a protective mechanism for lenders, guarding them against potential losses in case of loan defaults. Additionally, it equips the Unitus protocol with the ability to liquidate collateral assets should their value experience a significant decline, indicated by an Adequacy Ratio falling below 1.

Users can trade USX for other crypto assets (and vice versa) on many major decentralized exchanges, including Uniswap, Curve, Velodrome, and more. You can view USX's liquidity pools on different blockchains by clicking here.

UTS Bridge

UTS is the governance token of Unitus, implementing the OFTV2 (Omnichain Fungible Token) standard introduced by LayerZero.

LayerZero introduced the OFT standard to improve interoperability among major blockchains. By implementing OFT, UTS can seamlessly move between supported chains, achieved by burning UTS on one chain and minting an equivalent amount on another.

Visit LayerZero’s docs for more information about OFT.

USX Celer Bridge

dForce integrates Celer’s Inter-Chain Messaging (Celer IM) framework to facilitate cross-chain swaps for USX, in a liquidity-pool-based model with lower fees and faster transaction speeds.