The Unlockd protocol is a decentralized financial platform (DeFi) that allows you to borrow and lend real world assets (RWAs) in the form of non-fungible tokens and other digital assets.
What is Unlockd
The protocol is a set of smart contracts and libraries that enable secure and efficient management of loans, orders, auctions, and asset transactions.
The protocol is designed to be modular, allowing developers to build its core features and integrate it with various trading platforms and marketplaces.
Potential use cases:
- Collateralized RWA borrowing
- Fractional ownership and liquidity provision for high value RWAs
- Decentralized marketplaces for trading RWAs
- Automated Market Makers (AMMs) for RWAs
- Derivatives and synthetic assets based on RWAs
RWA lending
Unlockd uses a Peer-To-Pool model. Borrowers take out permissionless loans with no fixed expiration date, instantaneously, with a fair interest rate, and against their tokenized assets - if they are backed.
The platform provides reasonable rates with no fixed loan expiration dates.
AI and real-time risk assessment for the best LTV
Unlockd uses advanced artificial intelligence technology to reimagine asset and risk assessment in RWA secured lending:
- Advanced Collateral Valuation: The key to accurate collateral valuation lies in the data providers' use of sophisticated machine learning algorithms. Unlike traditional methods that rely on floor prices, Unlockd's approach evaluates each asset individually, determining its true value based on a comprehensive analysis of market data and trends. This method provides a more accurate, fair and reliable valuation of each asset.
- Dynamic LTV Determination: An artificial intelligence-driven system continuously analyzes liquidity, volatility and market depth data to offer realistic and favorable Loan-To-Value rates that benefit both borrowers and lenders.
- Adaptive Risk Modeling: Algorithms adapt to market fluctuations in real-time, providing a balanced and safe lending platform by adjusting LTV rates in response to market trends.
Multi-asset collateralization
Unlockd provides the ability to combine multiple RWAs from different collections or types into a single loan. This unique approach offers several benefits:
- Expanded borrowing options: by combining different assets into a single loan, borrowers can utilize a wider range of assets, increasing the total value of the loan they can access.
- Risk diversification: This bundling allows for a more balanced risk profile. By not relying on a single asset or asset type, borrowers can mitigate the impact of market fluctuations on individual assets.
- Simplified management and gas efficiency: Managing one bundled loan instead of several individual loans simplifies the borrowing process, making it more user-friendly and extremely economical in terms of gas consumption.
Full custody with Unlockd Account
Unlockd ensures that borrowers retain full responsibility and ownership of their pledged assets through Unlockd Account technology. This feature allows users to remain custodians of their assets, and Unlockd only intervenes to prevent unauthorized transactions during the active pledge period.
- Custodian Retention: While your assets are pledged, you retain full control and ownership, ensuring security and compliance.
- Unlockd Account is a unique shared wallet technology that securely holds assets as collateral, preventing unauthorized transfers. This approach ensures that borrowers continue to own and control their assets, which complies with regulatory and KYC requirements and rules, providing transparency and verifiable ownership.
Retaining ownership allows users to access the full capabilities of their assets. This includes participation in token-related activities, on-chain activities, etherium and staking rewards, even if the assets serve as collateral for a loan.
RWA marketplace
Unlockd Marketplace provides flexibility in asset transactions by allowing listings on all aggregated marketplaces, instant sales and auctions with attached debt.
Bid now, pay later
Unlockd's Marketplace expands RWA acquisition opportunities with its “Bid-Now-Pay-Later” feature, a unique combination of bidding and instant loan creation.
This feature simplifies the process of acquiring assets by instantly using them as collateral for a new loan.
When you successfully bid on an asset using the Bid-Now-Pay-Later option, a loan is immediately created in Unlockd with the purchased asset acting as collateral. This integration simplifies the process, allowing you to purchase RWAs without any initial capital.
The terms of the loan associated with your successful offer are determined based on current market conditions and asset specifics, according to Unlockd's valuation system and dynamic LTV. This means that each successful offer results in a new loan agreement that takes into account the momentum of the moment.
Notifications
Unlockd integrated with hashmail, a communication platform for web3, to improve communication and experience for its users.
This integration has allowed Unlockd to provide direct, targeted and personalized communications for its users.
The integration of hashmail into the Unlockd platform allows users to select the communication channels they prefer to receive notifications through. Notifications can be received through the following channels:
- hashmail wallet inbox
- Telegram
- Web2 email
- Unlockd front-end
- Discord
Types of notifications:
- Health Alerts. These notifications are designed to inform users about the health of their RWA-backed loans.
- RWA (liquidation) auction alerts. When a loan goes into liquidation, an RWA auction is initiated. The Unlockd platform, using hashmails, will send users alerts when new RWAs become available for bidding.
