What is Unisave?
TL;DR: Unisave = Uniswap x YFI
Unisave is a Uniswap compatible Decentralized exchange which introduced a few new features.
- Auto Mining 🔨
- No Protocol Fee 🎫
- Self-adjusting Market Maker Algorithm 📈
- Extremely low slippage
The biggest pain point of Uniswap is the extremely low asset utilization. These days people can invest their underlying asset into many DeFi aggregator system such as YFI, DFI and Harvest to get a considerable passive income. This income is more and more competitive compared to trading fees in Uniswap, and there is no fear of impermanent loss.
To address this problem, we introduce a mining system in Unisave. Each Unisave-pair can been seen as an aggregator and invest in a strategy which have no funds management fees such as Fortube, DFI, etcs. (or YFI if YIP-51 gets passed.
Unisave designed as a public good, since the community can be driven by mining revenues, there is no need to add protocol fees at all. Allowing us to be the 1st DEX with no protocol fees at all.
To improve the trading experience and reduce transaction slippage, we introduce a new technique called dummy liquidity, dummy liquidity is a liquidity which doesn’t backup by real assets, but will be used in every swap function.
Dummy liquidity can be set by multi-signature time lock contracts, and LP token will be bound into a trading window, by doing so, each LP token will be leveraged.
Unisave use a brand new constant product market maker algorithm called Self-adjusting Market Maker （SMM）Algorithm which divide liquidity into three parts.
trading liquidity is part of liquidity use for trading every day.
mining liquidity is part of liquidity investment in Automated mining program.
To solve the pain point of the slippage. We have four schools of algorithms. Bancor V2（or dodo）, Balancer, hakka(blackhole), Curve. Today we welcome the fourth school. SMM algorithm. We realized that the slippage in unisave is always the market’s relative optimal result by using the Oracle direction completely opposite to the Bancor V2.
My friends, we must speak honestly. It is very hard to handle slippage, Impermanent Loss（IL）at the same time. Unisave prioritized resolving the slippage issue. And keep our trading slippage at a level that is always smaller than UNiswap, getting a nice balance. But at the same time, by increasing the use of capital utlization, we can also compensate for the IL that has been magnified.
The biggest pain point of Uniswap is unendurable low capital utilization, especially for the pair between stable coins, around 99% of the underlying assets are completely idle in Uniswap USDT/USDC trading pair.
To address this pain point, Unisave will invest a certain percentage of the underlying idle assets of each trading pair into liquidity aggregator contracts such as YFI or DFI（YFII） to gain passive income.
In order to make mining more efficient without increasing transaction fees, the mining percentage can be dynamically adjusted for each trading pair through governance.
Unisave protocol is designed as a public good. Since we introduce mining into Unisave protocol, there is no need to have a fixed protocol fees anymore. And to have an attractive returns for liquidity providers，pairs can has their own trading fees through governance like what we do in Balancer.
Last modified 1yr ago