Open DeFi and UNION Finance are now collaborating to help strengthen and support projects across the expansive landscape of Decentralized Finance. UNION will provide Open DeFi with Smart Contract Protection (SCP) and UNION-Crypto Default Swap (U-CDS) to protect projects on Open’s platform. UNION’s Collateral Optimization product (C-OP) will help modulate different high-volatility tokens in order to reduce custody risk. UNION’s Sanctum cybersecurity Center of Excellence will provide support for smart contract audit, infrastructure, and operational security.
Open DeFi is a progressive and unique decentralized protocol that aims to build an open DeFi ecosystem for one and all through its DeFi ecosystem DAO and unique solutions. Through Open DeFi’s community-driven DAO, the platform aims to bring a multi-chain era of DeFi and effectively contribute to the DeFi developments for greater and mainstream adoption.
“The Open DeFi community includes some of the most respected DeFi & Web3 talent and projects across the globe. The Open DeFi community believes that the future of decentralized finance will be optimized only through values and endeavours that are immersed in non-tribalism, collaboration, exploration, and multi-chain at its core. After all, Web3 is not a winner-take-all space like the internet today, but a network of decentralized communities working towards a better internet and co-operative capitalism. Today, there are too few initiatives in the crypto-blockchain space that are driving this realization, which is why we are now introducing the Open DeFi DAO (OD DAO),” said OD DAO’s Sami Tannir.
UNION is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. DeFi participants manage their multi-layer risks across smart contracts and protocols in one scalable system. UNION decreases the entry barriers for retail users and lays the foundation for institutional investors. UNION’s full-stack DeFi protection is inclusive, composable, and brings battle-tested capital and pricing models from TradFi to the DeFi ecosystem.
UNION’s collateral optimization product, or C-OP, allows users to use their crypto dollar-for-dollar when borrowing stablecoins from DeFi lenders. It protects borrowers from volatility that might otherwise cause borrowed DeFi positions to liquidate. In this way, C-OP behaves much like an American Put option on the underlying collateral being protected:
- Buyers of protection are buyers of the C-OP, and receive uUNN.
- Sellers of protection are writers of C-OP, and receive pUNN.
- Buyers and Sellers pay/deposit/receive premiums in stablecoin even though the underlying asset of the CO-P position will be another token such as ETH or wBTC.
- No UNN is required to purchase or write protection, though there may be incentives such as additional yield should the purchaser or writer also hold UNN.
UNION’s Smart Contract Protection (SCP) provides protection against hacks, malfeasance, and defects that plague DeFi protocols. The SCP platform works on top of our core crypto default swap architecture, where U-CDS enables all of our core protection products.
“We’re truly excited to be working with the Open DeFi DAO to extend our protection products as to the service of their broader community. We believe in the need for multi-chain focus and open collaboration as requisite tenants to make DeFi grow, and believe in their project’s solid stewardship and approach. We look forward to engaging with and delivering to their ecosystem,” said Michael Beck, UNION’S Project Lead.