FAQ
Last updated
Last updated
What is Unilend?
Unilend is a decentralized, non-custodial liquidity protocol that enables users to supply and borrow assets. Suppliers earn interest by providing liquidity, while borrowers can obtain loans by offering collateral that exceeds the borrowed amount.
How can I interact with Unilend?
Users can interact with Unilend through its web application (), which allows them to supply tokens, borrow assets, and manage their positions. Detailed guides and tutorials are available to assist users in connecting to Unilend and performing various actions:
How does Unilend work?
Unilend operates by allowing suppliers to provide liquidity to the protocol, earning interest in return. Borrowers can access this liquidity by depositing collateral that exceeds the amount they wish to borrow, ensuring the protocol's solvency.
Do I need a wallet to interact with Unilend?
Yes, you need a Web3-compatible wallet to interact with Unilend. A wallet allows you to connect to the platform, supply assets, borrow funds, and manage your positions securely. MetaMask wallet is used to access Unilend. Find the full guidelines on how to connect to Unilend platform:
What is the Supply Incentive Program?
The Supply Incentive Program is designed to reward users who supply liquidity to Unilend. Participants can earn additional rewards based on their activity within the protocol.
How do I participate in this program?
To participate, users need to supply tokens to Unilend. As they provide liquidity, they accumulate experience points (XP), which determine their position on the leaderboard and their eligibility for rewards.
What will I earn after the Incentive Program?
Participants earn rewards based on their accumulated XP and leaderboard position. The specific rewards and their distribution are detailed in the program's guidelines:
Can funds be frozen?
Unilend is a decentralized protocol, meaning that user funds are controlled solely by the users themselves. There are no mechanisms within the protocol to freeze user assets.
Where are the supplied tokens stored?
When tokens are supplied, they are deposited into Interest Bearing contracts deployed for each token within the protocol.
For example, the Interest Bearing contract for wUNIT0 can be found here: .
All contracts are publicly accessible and can be verified in the blockchain explorer:
How do I supply?
Users can supply tokens by connecting their wallets to Unilend's web application and selecting the assets they wish to provide. Detailed instructions are available in the protocol's guides:
How much can I earn?
Earnings depend on the supplied asset and current market conditions. Interest rates are dynamic and can be viewed within the Unilend application.
How do I withdraw?
To withdraw, users can navigate to their dashboard on the Unilend platform and select the assets they wish to remove from the protocol. The withdrawal process is straightforward and guided within the application.
How do I borrow?
Users can borrow by providing collateral that exceeds the desired loan amount. The borrowing process is initiated through the Unilend web application.
How much can I borrow?
The borrowable amount is determined by the value of the collateral provided and the specific parameters of the asset being borrowed. Each asset has its own loan-to-value (LTV) ratio, which dictates the borrowing capacity.
How do I repay my borrow position?
Repayments can be made through the Unilend application by selecting the borrowed asset and specifying the amount to repay. Users can choose to repay partially or in full.
How much would I pay in interest?
Interest rates are variable and depend on the asset borrowed and current market conditions. The applicable interest rate is displayed at the time of borrowing and can be monitored through the user's dashboard.
When do I need to pay back the borrow position?
There is no fixed repayment schedule; however, borrowers must maintain their collateralization ratio to avoid liquidation. It's essential to monitor the health factor of the borrow position to ensure it remains above the liquidation threshold.
What is a Health Factor?
The health factor is a numeric representation of the safety of a user's borrow position. A higher health factor indicates a safer position, while a value below 1.0 signifies that the collateral is insufficient, leading to potential liquidation.
What happens when my health factor is reduced?
A reduced health factor indicates increased risk of liquidation. If the health factor falls below 1.0, the borrow position becomes under-collateralized, and the collateral may be liquidated to repay the debt. Users should monitor their health factor and adjust their positions accordingly to avoid liquidation.