Introduction
Unite Finance offers the first decentralised algorithmic stable coin on Harmony Mainnet, pegged to the price of 1 ONE via seigniorage.
The protocol's underlying mechanisms are designed in a way to ensure a peg of UNITE:ONE is achieved, and once achieved, it is maintained to establish $UNITE as a mirrored, liquid asset to $ONE. Protocol accomplishes this by introducing unique economic and game-theory centric dynamics into the market through its three tokens.
Unite Finance was launched on 24th December 2021 and is modeled/inspired by a highly successful project, Tomb Finance on the Fantom chain.
The Unite Finance protocol is based on a series of complex interactions, with the behaviour of multiple stakeholders deciding the pricing dynamics of the multiple tokens of the ecosystem.
- When UNITE price is over the peg (like it is expected it will be for the initial few weeks/months of the project), new UNITE are minted to drive the price down. These new UNITE are allocated to USHARE holders in the boardroom, thus staking USHARE in the boardroom makes the most logical sense during this period.
- When UNITE price is at the peg, UNITE holders can use the UNITE-ONE LP to increase their yield. At this point, new UNITE will stop getting minted, and each investor's USHARE will drive voting rights to have a say in the governance of the platform through DAO.
- When UNITE price drops below the peg, investor's strategy should lean towards buying UBOND using UNITE. The UNITE used to buy UBOND will be burned, which reduces supply of UNITE and brings its price back to peg, at which point investors can sell UBOND to earn profit.
The strategy that brings most investors profits & best long term growth to the protocol is the Harmonious Restaking Strategy, so we recommend new investors to start there.
In the short term, until the peg is achieved, UNITE is focusing on optimizing the protocol and creating wealth for our early investors through Farms and Boardroom.
Once the peg is achieved, the system’s mechanisms will focus on stability and consistency so that $UNITE can function as a mirrored, liquid asset to $ONE.
A percentage of proceeds from this process go to the community owned DAO fund which plans to establish Harmony’s fresh Incubator and Launchpad to bring new opportunities and growth to the entire Harmony ecosystem.
For UNITE to have value, ONE needs too to have value - for this, we need a vibrant Harmony ecosystem with flourishing projects. Unite Finance’s shift to a DAO-based governance system will ensure that the whole community stays together, makes decisions harmoniously together, and takes everyone along to the moon 🚀
We love Harmony 💙 The chain is growing fast, driven by lightning-quick transactions, and has the support of a great community. While the ecosystem is nascent, it has achieved the size and scale to confirm that Harmony is here to stay and grow even bigger in recognition as top tier blockchain.
And this is where we see gaps that Unite Finance is there to fulfil. Essential to any chain’s success is presence of liquidity in the ecosystem, and Unite Finance essentially brings this by creating a mirrored asset to Harmony’s $ONE token. In the short term, that means our high APRs attract investment from other chains into Harmony, while providing high returns on $ONE compared to traditional methods like staking in the short term.
But this is not all - our years of experience gives us a fair idea of the challenges every new project faces, and how to face them. As torch-bearers of the Harmony community, we want this experience to help others who are launching in Harmony through our Launchpad Accelerator Program - helping genuine projects grow & doing our bit to achieve the ultimate vision of making Harmony a top 5 chain.
Unite Finance’s multi-token protocol consists of the following three tokens and each plays a critical role in establishing this protocol:
- 1.Unite Tokens ($UNITE) - The UNITE token is designed for use as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain UNITE’s peg of 1 UNITE = 1 ONE
- 2.Unite Shares ($USHARE) - USHARE token holders have both governance voting and ownership rights of the protocol. Once DAO is established, they will play a crucial role in the governance of Unite. USHARE can be staked in the boardroom to earn a part of minted UNITE as rewards.
- 3.Unite Bonds ($UBOND) - UBOND’s main job is to help incentivize and reward users for ensuring peg during an epoch contraction period.
Last modified 10mo ago