Segregated Mode
Unlock greater capital efficiency for long-tail crypto assets.
What is the Segregated Mode?
While Unitus V1 generally supports blue-chip assets with significant market cap and deep liquidity, we also aim to extend lending support to a variety of long-tail assets. This allows users to earn yield or obtain leverage on these assets, which is otherwise unachievable through most DeFi protocols. By doing so, Unitus can better meet market borrowing needs while minimizing risk to the overall protocol. This is the design behind Segregated Mode.
Segregated Mode allows new assets to be listed on Unitus with customized parameters, including debt ceiling, LTV, liquidation threshold, etc. Users can deposit these assets as collateral to borrow stablecoins. However, borrowers cannot use other assets as collateral when borrowing against collateralized segregated assets.
Segregated mode is live across all supported networks, with each proposed asset to be approved by the community through governance.
Benefits of the Segregated Mode
Segregated Mode unlocks a host of benefits for both its users and the protocol, including:
Prudent Risk Management: With tailored risk parameters for each segregated asset, Unitus ensures responsible risk management within the protocol, reducing the likelihood of systemic risk.
Enhanced Capital Efficiency: The Segregated Mode unlocks a greater capital efficiency for long tail crypto assets that still are not present on Unitus V1.
Expanded Offerings for Unitus: Segregated Mode enables the integration of long-tail assets into the Unitus ecosystem, diversifying market offerings and catering to a broader range of users.
Expanded Utility: For protocols, adding lending support will expand utility for their tokens, potentially increasing its overall value and market adoption.
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