What is BLP?

Bonded Liquidity Provisioning (BLP)

What Is BLP?

Unitus takes a departure from the traditional approach of creating artificial demand, which can lead to mercenary capital seeking to take advantage of the short-term incentive programs and creating significant selling pressure for DeFi projects.

Instead, Unitus embraces a value-driven tokenomics approach. In this model, the UTS token seamlessly complements and enhances the core functionality of the protocol through the introduction of a mechanism called Bonded Liquidity Provisioning (BLP). This mechanism represents the liquidity you provide for UTS paired liquidity pools (UTS/DF, UTS/USX) on supported blockchains.

The primary purpose of this mechanism is to further incentivize liquidity for the Unitus token (UTS) and enhance alignment of interests across all stakeholders of Unitus.

What Role Does BLP Play In The Broader Context Of Unitus And Its Ecosystem?

Liquidity is crucial to the success of growth of UTS and Unitus, significantly impacting market stability, investor confidence, and the overall performance of Unitus:

• User commitment: The greater the liquidity and the longer you stake your BLP with Unitus, the more benefits you can anticipate while actively contributing to the growth of Unitus. This commitment is rewarded with higher incentives for participants through BLP staking.

• Interest alignment: BLP enables Unitus users to actively engage in and benefit from the value generated by the protocol, fostering a long-term vision that promotes sustainable growth for Unitus.

• UTS adoption: BLP incentivizes liquidity provision for UTS, which serves to mitigate excessive volatility, ensuring a smoother path to adoption and everyday usability of UTS.

How Users Of Unitus Can Benefit From BLP?

Reward alignment is the coordination of incentives for different stakeholders toward a shared objective.

BLP unlocks Unitus’ full potential for its users and empowers dedicated Unitus users to capture the majority of the value generated by the protocol, fostering their active engagement and commitment to Unitus' lasting success:

• Boosted UTS emission (in the Guided Launch period)

• Exclusive access to UTS emission (after the Cruise Launch)

• Earn protocol fee

• Other benefits

Note: In the guided launch period, BLP holders will receive boosted emission on their deposits & borrows. However, upon the Cruise Launch, a lock-up requirement may be introduced. BLP holders will need to lock their LP position for a certain period to activate emissions and share a pro-rata portion of the protocol revenue.

Further information regarding the BLP lock-up will be provided at a later date.

Is There Any Lock-up Requirement For BLP?

In the guided launch period, there is no need for users to lock up their BLP. Simply staking BLP in Unitus grants access to boosted yields, and users retain the flexibility to unstake their BLP at any time.

However, there are plans to implement a mandatory BLP lock-up requirement upon the Cruise Launch (Stage 2). During this period, BLP holders who opt to lock their tokens for a specific duration will unlock additional exclusive benefits, determined by both their liquidity contribution and the duration of their lock-up.