UniLend is a blockchain-based network that brings more liquidity into the DeFi ecosystem through a special mix of spot trading and money markets.

The total value locked (TVL) in decentralized finance (DeFi) networks as of December 2020 is hovering between $14-$15 billion. However, the funds come from a few cryptocurrencies that have dominated the DeFi scene. Consequently, more cryptocurrencies are locked outside the ecosystem due to lack of support from leading and upcoming DeFi platforms.

While some systems have sought to address this issue, there’s a lot of fragmentation since no singular system supports the entire array of coins available in the crypto market today. UniLend is among the few DeFi protocols that bring the full spectrum of available tokens into the DeFi market. In addition, the protocol also introduces new dimensions to maximize user incentives.


Chandresh Aharwar, Suryansh Kumar, and Tarun Malik are the project’s co-founders. They also double up as the CEO, CTO, and CPO, respectively. Previously, the three were involved with either Matic Network or Metatransact.

Other team members include community leaders, blockchain engineers, lawyers, marketers, and designers. Ravindra Kumar serves as its advisor.

What is UniLend?

UniLend is a blockchain-based network that brings more liquidity into the DeFi ecosystem through a special mix of spot trading and money markets.

The combination seeks to disengage the monopoly of DAI, USDC, USDT, SNX, LINK, MKR, BAT, ENJ, and WBTC coins when it comes to the deployment of funds on DeFi protocols. In doing so, UniLend opens the doors to a $16.7 billion untapped market.

Notably, the protocol’s approach allows decentralized trading, borrowing, and lending to co-exist in the same pot. To make this work, demand and supply determine the collateralization ratio and the interest rates in the money markets.

On the other hand, trading pairs’ liquidity determines the amount and the profits on borrowed funds. Such a delicate balance boosts DeFi usage by addressing liquidity and settlement issues in the space.

UniLend Features

UniLend brings seven features to the DeFi ecosystem. Key among them include:

  • Distributed token listing – Listing a coin on the protocol doesn’t require the intervention of any third-party, neither does it need a decentralized autonomous organization (DAO). Interestingly, listing a new coin automatically enables it for use throughout the system.

As such, a newly-listed coin can be used for spot trading, borrowing, and lending. The protocol’s permissionless listing supports assets using Ethereum’s ERC20 token standards.

  • Lending and borrowing – Lending and borrowing form the core of UniLend’s DeFi offering. It incentivizes users to provide liquidity to power lending. Borrowers are charged an interest that is transferred to lenders.
  • Liquidity provision – Asset trading requires liquidity. Liquidity providers (LPs) drive this part of the protocol. Note that the transaction fees charged to trading acts as LP rewards. In addition, they receive the platform’s native token, which awards them governance rights.
  • Professional user interface – The user interface is a crucial contact point that can make or break a user’s experience. Therefore, UniLend has a professional and easy-to-use interface in order to make trading, borrowing, and lending more comfortable.
  • Governance – Decentralized platforms require the involvement of their community. UniLend handles this aspect by giving power to its native token holders. The community can then suggest or vote on proposals affecting vital parts of the vast UniLend land.

However, recommendations that progress through the stages to reach implementation are those with majority community backing. Some features that fall under community governance include increasing or reducing the collateralization ratio of loans.

Unilend Financial Token (UFT)

The protocol has a native currency called UniLend Financial Token (UFT). It acts as a utility and governance asset.

Note that UFT is non-refundable and can only be transferred between the network’s users. While it serves as a medium of exchange inside the UniLend ecosystem, it does not carry the same functionality in the real world.

Furthermore, the currency doesn’t act as an investment asset that guarantees users interest, dividends, or profits of any kind. As such, UniLend makes it clear that holding the token gives rights only to interact with the platform.

How UniLend Works

The protocol is designed for everyday usage. As such, its functions are streamlined to remove any stumbling block for users. For example, bringing together the trading and money markets seamlessly allows users to create different money markets from a single spot trading pair.

Consequently, it enables users to determine the risks and curate personalized risk strategies. UniLend shifts from having qualities of a managed fund to being a self-managed fund. In that case, lenders can decide on the ideal collateralization ratio and loan disbursement strategy.

Additionally, taking the route of a self-managed fund enables DeFi users to interact with a wide range of tokens already recognized in the virtual currency world.

To enhance the speed of decentralized lending and borrowing, UniLend employs double asset pools. Therefore, the network is able to provide its users with a smooth DeFi experience.

Practical use cases


Let’s assume that James is holding virtual assets and now wants to earn a commission by lending them. He only needs to access UniLend, add the assets in a pool, let the pool conduct lending, and receive interest. However, the returns received is determined by the amount contributed to the lending pool. For safety purposes, James’ assets are held by a professionally-designed and secured smart contract.

Spot Trading

Caleb holds an array of cryptocurrencies that he wants to trade. Unfortunately, one of the coins he wants to exchange is not listed on his favorite crypto trading avenue.

Not comfortable depositing his holdings on a centralized platform, Caleb heads over to UniLend for decentralized trading. Although one token isn’t available, he lists it and continues to trade.


Susan needs quick funds. Armed with the required collateral, she uses UniLend to acquire a loan. Note that interest rates on the protocol are disclosed to enhance transparency and contribute to an informed decision.

How much Susan can borrow depends on the amount of collateral provided and the liquidity available.

How Is UniLend Different And Who Can Use the Platform?

UniLend works to solve the fragmentation problem. For instance, some DeFi networks focus only on spot trading, while others concentrate on borrowing and lending.

Those who try to bring the three aspects together limit the number of coins on offer and lengthens the token listing process. UniLend provides a fresh start by incorporating lending, borrowing, trading, and allows users to individually add cryptos as they please.

Consequently, it bridges the gap between currencies listed on DeFi systems and the coins available in the more expansive digital currency space. Listed coins can then be used to drive activities in both the DeFi and spot trading spaces.

By being decentralized and through the permissionless token listing, UniLend can be used by anyone holding ERC20 coins. This feature powers DeFi adoption and brings more coins to the market.


UniLend is a natural addition to the DeFi ecosystem. In a market primarily dominated by slightly above 30 tokens out of a possible 7000 cryptocurrencies, the protocol brings more options to crypto holders.

Furthermore, by combining spot trading, money markets, lending, and borrowing functionalities in the same smart contract, it effectively removes barriers in DeFi such as settlement and liquidity. Additionally, UFT provides holders with governance rights putting the decision-making process in the hands of the network’s users.