General FAQ

Is my fund safe with Unitus?

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, Certik, and Certora. You can access the comprehensive audit reports by clicking here .

For Unitus V2, we have commissioned extra security audits by MixBytes and Certora to ensure the utmost security and reliability of all new features.

Simultaneously, we have launched bug bounty programs with multiple platforms, including Immunefi, Hacken, and BugRap, to incentivize security researchers, white-hat hackers, and community members to identify potential vulnerabilities within Unitus protocols. Participants can earn bounty rewards for their contributions, helping maintain the highest level of security for Unitus and its users’ funds.

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.

Can I withdraw my funds at any time?

In most cases, instant withdrawal is supported. However, deposits must exceed loan demand for the same asset to ensure investors can withdraw funds at any time, maintaining adequate liquidity. The total availability of funds for withdrawal depends on the size of the liquidity pool (total supply minus total borrow), which is determined by the asset's Utilization Ratio. The higher the Utilization Ratio, the higher the supply and borrowing rates.

In extreme events of liquidity drain, where the Utilization Ratio approaches 100% and interest rates exceed market levels, investors will be incentivized to supply assets into the protocol for attractive returns. Concurrently, borrowers will be prompted to repay some loans to avoid the liquidation of their collateral, thereby restoring liquidity to normal levels.

Can I pay off or 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.

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.