General FAQ

Is My Fund Safe With Unitus Protocol?

Security stands as our foremost priority, and we are taking extensive measures to ensure risk management is implemented on multiple levels:

We have partnered with some of the world's foremost audit firms, renowned for their expertise in security audits and formal verifications, to thoroughly assess the security and integrity of our lending protocol (formerly known as dForce Lending). These reputable firms include Trail of Bits, ConsenSys Diligence, Quantstamp, Certik, Certora, PeckShield, SlowMist, and SECBIT. You can access the comprehensive audit reports by clicking here .

The upcoming Cruise Launch (Stage 2), will introduce a host of thrilling features, further enhancing capital efficiency. Additionally, we have commissioned extra security audits by MixBytes and Certora to ensure the utmost security and reliability.

In addition, we have initiated a Bug Bounty program on Immunefi, designed to incentivize security researchers, white-hat hackers, and community members to actively participate in identifying potential vulnerabilities within Unitus protocols. Participants can earn bounty rewards for their contributions.

However, it's important for users to acknowledge that the DeFi industry is still in its early stages, and no platform can claim to be entirely immune to associated risks, including smart contract vulnerabilities and the potential for liquidation in highly volatile market conditions.

How Do You Charge Fees?

Unitus doesn’t charge users for depositing assets to earn interest or for initiating a loan against collateral assets. However, a small fee will be deducted from the interest spread, which is the difference between borrowing interest and saving interest. This fee contributes to the protocol revenue and is determined by the interest rate model in place.

Where Are My Crypto Assets Stored?

dForce Lending is a decentralized money market protocol utilizing smart contracts to facilitate crypto lending. Only users have access to and full control over their funds and we do not hold your asset – this is how decentralized finance works. Please make sure to keep you private key safe as we are unable to retrieve your private keys, access your account, reset your password or reverse transactions. It would be extremely upsetting if you lost your private key as you will permanently lose access to your fund.

Can I Withdraw My Funds At Any Time?

In most cases, instant withdrawal is supported. However, deposit must be of greater value than loan demand of the same asset so that investors can withdraw fund at any time (adequate liquidity), that is to say, total availabilities of funds for withdrawal is subject to the size of liquidity pool (total supply minus total borrow), which is decided by Utilization Ratio of the asset. The higher the Utilization Ratio, the higher the supply rate / borrowing rate.

In extreme events of liquidity drain, where the utilization ratio is close to 100% and interest rates are pushed to above market level, investors will be incentivized to supply assets into the protocol for attractive investment returns, and borrowers will have to repay some loans to avoid liquidation of collaterals, which will bring liquidity back to normal level.

Can I Pay Off / Refinance My Loans At Any Time?

Yes. Borrowers can refinance or pay off their loans (in portion or in full) at any time. Interest will be calculated through the block of loan termination (calculated on block basis).

Can I Supply And Borrow Simultaneously?

Yes, but it's important to highlight that supply and borrowing are mutually exclusive choices for the same asset within the system. This means that users have the flexibility to supply one type of asset as collateral and acquire loans in different assets. For instance, a user can choose to provide WETH as collateral to secure a USDT loan. However, it's crucial to note that the same user (address) must settle any outstanding USDT loans before depositing USDT to earn interest within the system. This ensures that the lending and borrowing processes remain distinct and do not overlap for the same asset, maintaining the integrity of the protocol.

Is There Any Investment Threshold?

Absolutely, one of the fundamental principles of decentralized finance (DeFi) platforms, including Unitus, is that we offer equal access to financial services for anyone, regardless of their location, credit score, student loan status, or net worth.

DeFi operates on blockchain technology, removing the need for intermediaries or centralized institutions, and making it accessible to a global and diverse user base. Users can participate freely and directly, ensuring a more inclusive and equitable financial landscape.

How Is Interest Calculated?

Interest rates will be algorithmically determined by both market demands (yield-providing) and the supply of assets (asset-providing). These calculations occur in real-time within each block.

This dynamic approach to interest rate calculation ensures that rates remain responsive to changing market conditions, offering users more accurate and up-to-date returns on their assets.

Who Pays Out Interests To Asset Suppliers?

When an investor supplies a selected crypto asset to dForce Lending, collected funds will be placed into a global lending pool, where borrowers can borrow directly from the pool and pay interest for it. Interests will be distributed to all investors of the same asset on a pro rata basis.

When an investor supplies a specific crypto asset to Unitus Finance, the funds they contribute are pooled together in a global lending pool. This pool serves as a shared resource from which borrowers can directly secure loans, and they are required to pay interest on these loans. The interest payments made by borrowers are then distributed to depositors and dForce Treasury.

This distribution of interest is carried out on a pro rata basis, meaning that each investor receives a portion of the interest income in proportion to the amount of the asset they have contributed to the lending pool. This ensures a fair and equitable distribution of earnings among investors.

Why Is There a Gap Between The Saving Rate and Borrow Rate?

Total Supply * Saving APR + Reserve = Total Borrowing * Borrowing APR

On Unitus, we charge no fees for providing assets or borrowing from the global pool. However, a small fee will be collected from interest spread (borrowing interest minus saving interest) as Reserve, which produces disparity between supply APR and borrowing APR. Accrued fees in Reserve will be utilized to provide additional safeguards to protocol users in extreme events, and facilitate buyback and burning of DF, or redistribute to DF holders as a bonus, subject to governance decision.

On Unitus, there are no fees associated with providing assets to the global pool or borrowing from it. However, a slight fee is collected from the interest spread, which represents the difference between the borrowing interest and the saving interest.

The fees collected have multiple roles within the protocol. Firstly, they act as an added layer of security and protection for protocol users, particularly during extraordinary situations or events.

Additionally, there is a plan in place to distribute a percentage of protocol revenue (aka fee) to BLP (Bonded Liquidity Provisioning) holders upon the Cruise Launch take place. However, further details regarding this distribution and its mechanics will be revealed in the near future. This distribution is expected to provide additional benefits to BLP holders, and more information will be shared soon to provide clarity on how it will work.

How Do You Source Price Feeds For Supported Assets?

Unitus has successfully integrated with ChainLink and Pyth on various blockchains, providing our users with a higher level of decentralization and reliability. This integration enhances the overall stability and trustworthiness of our platform.