Join liquidity pools and stake at the same time LITE PAPER
Executive Summary Unistake empowers DeFi projects in their quest for liquidity by providing new incentives for their supporters to create Uniswap liquidity pools. Communities can contribute to a tokens liquidity in new ways that include guaranteed returns, reduced risk of impermanent loss, and single sided liquidity provision.
Problem Many DeFi users looking to make returns on their tokens are torn between providing liquidity to earn Uniswap trading fees, or staking their tokens to earn a yield. Although staking tokens often results in a predictable yield, it provides little tangible value to the token being staked. Although temporarily removing tokens from circulation has short term benefits for the token value, the yield is often generated in a non-sustainable way which can result in the price of the token being worth much less at the end of the stake than at the beginning. Providing liquidity, however, is the cornerstone of the Uniswap ecosystem, and every token needs it to maintain a successful swap environment. Liquidity providers are extremely important to the value and stability of the token, but the incentives to become a liquidity provider do not come with the predictable yields offered by staking. Liquidity providers also run the risk of losing their own value when they join a pool as the proportions of the tokens in the pool change. This loss of value is known as impermanent loss and it is a very real possibility, especially in smaller pools from new projects. The unpredictable returns and the risks of impermanent loss are often a defining factor that prevent token holders from becoming liquidity providers and making the contributions the project really needs.
Solution Unistake takes the predictable returns of staking and the important act of providing liquidity and merges them into one. This allows DeFi users to provide true value to the project who’s tokens they hold while ensuring they get a predictable return on investment that they are comfortable with. This is made possible by introducing Staking Bonuses, which are guaranteed by the Unistake smart contracts at the time the liquidity is provided. Once joining a Uniswap pool via the Unistake platform, the LP tokens minted by Uniswap are automatically staked in the Unistake smart contracts for the period of time selected by the provider. Depending on the pool, the Staking Bonuses a liquidity provider receives can be in either one token or both tokens of the pair, and during the staking period the liquidity provider can withdraw its returns at any time. Unistake, of course, has no control of what price the tokens will be worth in relation to each other, but the additional yield received through Staking Bonuses can help reduce the risk of impermanent loss. Unistake also introduces contracts that can totally eliminate the posibility of impermanent loss between the two tokens of the pair.
Problem Liquidity is arguably the most import thing for any DeFi project intending to use an automatic market marker like Uniswap; this is because, without significant liquidity, a token has no value that can be realised. The larger a liquidity pool is, the more resistant it is to volatility and the more comfortable people will be adding it to their portfolio. Although liquidity is so important to projects, there is not much incentive for people to become liquidity providers, especially for new projects and ones with small pools. Even projects with dedicated communities have difficulty converting their token holders into becoming liquidity providers, and only a small amount ever contribute to the pool. This is the case, even for larger projects. Therefore, attracting liquidity providers and keeping them in the pool is a difficult and continuous task for any project looking to grow. This often results in projects either investing in marketing to attract providers with a low return on investment due to the low incentives, or just concentrating on building their project without any thought about building their pools, in hopes that once their project reaches enough people it will, in turn, result in more liquidity providers. Neither of these solutions are good for the short or long-term sustainability of the project as a low pool volume often puts off buyers and even keeps out other liquidity providers for fears of impermanent loss or low trade volume.
Solution Unistake makes it possible for projects to begin attracting liquidity providers with all the objections of the potential provider being addressed. Project owners can set up their pools with pre-set goals on how much liquidity they wish to attract and for how long they wish people to provide the liquidity for. Projects have full control of their pool parameters and, once deployed, they can change their offerings based on market conditions or their own particular circumstances. The pools run autonomously, based on the parameters and budget the project decided on and, once filled, projects can accurately determine what the minimum pool size will be at any time, allowing them to concentrate on the fundamentals of their project rather than wondering about the health of their liquidity pool. Attracting providers, which is usually targeted to a very small percentage of token holders who are already familiar with liquidity providing, can now be more broadly promoted to the project’s community as the introduction of incentives made possible by Unistake makes it a more viable option for many. Projects can even ask their most dedicated community members to donate to the Staking Bonuses of new providers to further increase the amount of liquidity that can be attracted.
How It Works Unistake is a decentralized app (dApp) built and deployed on the Ethereum blockchain to work specifically with the Uniswap decentralised exchange. The immutable smart contracts work in conjunction with the unistake.com website allowing anyone with an internet connection to be able to interact with it and benefit from its capabilities. The smart contracts are open source and audited by security experts. This enables users to be assured that the smart contract will perform the functions it is programmed to do, and gives them peace of mind that their funds are safe and not in the control of any third party. Unistake is designed with simplicity in mind and provides a seamless link between the Uniswap exchange and the projects using Unistake to attract liquidity providers. The platform allows users to provide liquidity to Uniswap in their chosen pair without leaving the Unistake website. Liquidity providers can withdraw Staking Bonuses at any time during their term and, once the term has ended, they can withdraw their liquidity and Uniswap trading fees, restake their LPs for another term, or remove their LP tokens from the contract to continue providing liquidity as they would have, had they provided liquidity to Uniswap directly.
The Unistake interface provides an intuitive way for community members to find and provide liquidity to their favourite tokens, as well as discover new trending projects offering staking opportunities to increase their Uniswap liquidity. An optional side contract used when Multiplier providing liquidity to increase Staking Bonuses and lock up UNISTAKE. Standard 2 token Uniswap liquidity PoolStake model, but with the additional benefit from revenues streams from staking. A way to provide liquidity with only PoolMatch one token of the pair, while the project provides the other.
When entering a Uniswap liquidity pool via Unistake, users receive their Uniswap trading fees as usual, but the LP tokens minted by Uniswap are automatically staked in the Unistake contracts for the period of time selected when entering. Multiplier Input Desired Lock Period In Days 0 Unistake Multiplier is an optional Multiplier Balance side product and token utility that 100 UNISTAKE works in conjunction with other products on the Unistake platform. By using Multiplier users can Current Value 100 ETH increase the perceived value of Active Lockup Period the liquidity they provide to 00d 00h 00m maximise staking bonus returns provided by the project. Lock Multiplier PoolStake Providing liquidity with the Input Balance: 635.00028 LockInput Multiplier Balance: 1.000021 PoolStake option follows 200 MAX UNISTAKE + 1.000021 Input Amount Balance: 1.000021 MAX ETH the same two token model Already Providing 0 UNISTAKE Already Providing 100 UNISTAKE + 100 ETH as Uniswap, but with the Price and share of pools Period In Days 0 Select Staking Period added option of staking LP 192.124 UNISTAKE Per ETH 1 ETH Per UNISTAKE 0.06% Share Of Pool 30 Days 90 Days Active Lockup Period 180 Days 365 Days MULTIPLER OFF tokens to earn a return from Return in UNISTAKE based on length of stake 00d 00hReturn 00m in ETH based on length of stake one or both of the tokens Percentage 10% Staking Bonus 20 Percentage 1% Staking Bonus 0.01 Lock being provided in the pool. Enter Pool & Stake
PoolMatch Input Balance: 1.000021 PoolMatch is an adaptation on a 1.000021 MAX ETH concept often seen in companies Matched By Project who match an employee’s donation 100 UNISTAKE into a charity or pension fund. It Price and share of pools works in a similar way by allowing 192.124 Example Per ETH 1 ETH Per EXAMPLE 0.06% Share Of Pool projects the ability to put up tokens Staking Period into the contract, allowing their 365 Days communities to benefit from single token liquidity provision with a 100% Provide Liquidity return on what they provide. Unistake is designed to make attracting and providing Uniswap liquidity easier and more profitable than with Uniswap alone. Any project can utilise the tools offered to attract the liquidity they need, and anyone looking to provide liquidity can increase their returns by using Unistake to join those pools. To take advantage of these benefits, projects and liquidity providers both require the Unistake token (UNISTAKE) to do so. In order to use Unistake to attract liquidity providers, projects will need to have a Uniswap pair with their token and UNISTAKE. If an existing pair does not exist, the project will need to create the pair and lock up a certain number of tokens to gain access to the platform. For liquidity providers using the platform, profits derived from liquidity provision attract no fees by Unistake, but a 10% fee paid in UNISTAKE is required to withdraw the profits made possible by the platform.
Attracting Liquidity Projects looking to attract liquidity Create Pool providers can create short or Input Balance: 635.00028 long-term staking opportunities 200 MAX X EXAMPLE via Unistake. This can be planned Set Daily Rate ahead of launch or at any point in the life of the project. Percentage Offered 0.07% Projects wishing to use Unistake Set Monthly Rate ahead of their launch can actually Percentage Offered program their smart contracts to 2.5% interact with Unistake on a Set Yearly Rate permanent basis or for a set Percentage Offered period of time. 36% Projects who have already launched Estimate liquidity based on current token price. can allocate tokens from their $11,100,877 marketing fund, team fund or other tokens set aside to build and grow their project. Projects can also add their tokens to a PoolMatch to incentivise people to provide liquidity, even if they do not hold any tokens. PoolMatch can be used at any stage by a project but it is an especially good option for brand new projects who have just started building their liquidity. This is because it can essentially be used as a type of offering where the participants get to keep their initial investment and receive tokens for providing the liquidity that projects need to get started.
Launch Contracts Unistake realises that, for a project to begin building liquidity, it must first build trust within its community. This is why we planned our token launch to be decentralised. In addition to using Unistake, using our Launch Contracts for our own platform, the smart contracts are freely accessible to new projects who plan on using Unistake to grow their liquidity pools. The Unistake Launch Contracts are a set of audited smart contracts that automate the process of launching a new token that include token sale, Uniswap listing and timed token distribution. The token contracts used by Unistake in August 2020 also provide exclusive staking benefits to participants that incentivise them to hold their tokens in the contract while a project is in development. Although our launch contracts are ready for deployment and were used for our own project launch, the team will be concentrating on the development and growth of the Unistake platform before actively seeking to assist other projects with their launches.
Token & Supply The Unistake token (UNISTAKE) is an ERC-20 token with a max supply of 280 million. The token was launched through our token sale contract (ISO) which stands for Initial Stake Offering. Maximum Supply 280M Available On Launch Staked In ISO Liquidity Fund Team 120M 120M 35M 5M The ISO contract automatically staked all tokens purchased by participants and incentivised them not to withdraw them while the platform was being developed. Participants could withdraw them at any time during the initial development phase which was set to 180 days; however, if they did so, they would lose the total amount of tokens they could have received if they waited the entire term. The tokens forfeited by people withdrawing their tokens were shared equally between two places. The first place is the other participants of the ISO whose tokens remain staked and the other is the platform staking contract which is used to create Staking Bonuses on the platform. Through Staking Bonuses, people who waited the full 180 days received 100% more tokens than participants who withdrew early.
The Unistake team is taking a modest share of the total supply, which will be locked up into the Timed Distribution Contract. The term of the vest follows the same schedule as the ISO staking term of 180 days, which is split quarterly. However, the team’s tokens do not receive any staking bonuses and cannot be withdrawn early under any circumstances. AMOUNT PERCENT 5M 1.78% The Unistake platform will be available through the Unistake.com website in conjunction with Meta Mask or any Web3 Wallet. A fully decentralised version will also be available through IPFS, (UnstoppableDomains) via unistake.crypto and unistake.eth
The Unistake Team The Unistake team is made up of a small decentralised group of senior level blockchain developers and innovators. Between January 2020 and August 2020, the founding team worked part time on the project, and full time since the completion of the ISO. The decision behind the Unistake team being anonymous is more of a necessity to protect creative freedom and the long-term viability of the project, rather than a choice to be hidden. This is due to the constantly changing rules and regulations surrounding cryptocurrency laws world-wide. As with most DeFi and many CeFi crypto projects, there are aspects that simply do not comply with all countries’ rules. By remaining anonymous, the project protects its right to operate unencumbered and not be at risk or having to cease operations due to regulatory changes. The main objection with anonymity is that it is difficult to trust or know the team’s intentions; however, within the industry, there have been far more exit scams or disappearing projects from public teams than anonymous ones. We do of course understand people’s reservations with anonymity in traditional crypto projects; however, in true DeFi, it should be far less of a concern. This is not just because of the reasons explained above, but also because DeFi requires all functions to be performed by trustless smart contracts. Of course, it is very possible for smart contracts to be hacked by third parties or malicious code to be left in by the developers, but this is why we make sure all of our contracts are audited by third-party security professionals before releasing them to the public. It is our opinion that, when given the choice to trust people or to trust code, Code will always be seen as the most trusted of the two.