Universe Finance’s Lending Vault & Leveraged Vault
Universe Finance is moving step by step to achieve our roadmap. Today, They are happy to announce that two new products — leveraged vaults and lending vaults— are available on Universe Finance now. They keep updating their products to meet the different needs of the users. Uniswap V3 is a place full of opportunities. They are picking up the pace to provide users with tools and break down the barriers to ensure they won’t miss out on the chances.
Lending Vault
Lending vault is a product with relatively stable profits. It is designed for investors with low-risk appetite. You can use this vault to supply for the asset you want to lend. After selecting the amount of tokens and completing the transaction, your tokens will start working for you. Deposited tokens will be lent out to borrowers from the leverage vault. And depositors will earn profits according to the APY of each lending vault.
Leveraged Vault
The leveraged vault is built on top of the lending vault. It is designed for users who are risk-seeking. Investors who are able to afford the impermanent loss are seeking relatively higher yields. They can use the leveraged vault to amplify their returns. After investors using leveraged vaults to borrow assets from lending vaults, Universe Finance will integrate the borrowed tokens and their own money to provide liquidity in the Uni-V3 smart vaults on Universe Finance. The U-Tokens (the certificate to prove how much you deposit in a smart vault) will be used as collateral.
Lending & Leveraged Vaults
1. Provide Users with Multiple Choices
Universe Finance is a platform based on risk grading. We meet the needs of LPs who have different risk appetites through a series of products. The lending vault is developed for users who are risk reversal. The leveraged vault has relatively high risks and is designed for users who are risk-seeking.
2. Lower the risks
▪️ First, we provide 2–8 times leverages which are in fixed proportions. The leverages vary with different vaults. Universe Finance offers larger leverages to popular cryptocurrencies like stable coins and provides exotic pairs with smaller leverages like WETH-LOOKS. The amount of money you can borrow is in proportion to the deposits. Take our newly-launched WETH-LOOKS vault as an example. If you deposit 0.3 WETH+841 LOOKS and choose 2 times leverage, you can also borrow 0.3 WETH+841 LOOKS from the lending vault. And the liquidity you provide in the smart vault will be 0.6 WETH+1682 LOOKS. Users don’t need to swap because of the fixed proportion. It, therefore, saves the transaction fees and reduces the loss caused by slippage.
▪️ Second, the leverage strategy is neutral. Investors don’t need to long or short the tokens to leverage their assets. It helps leveraged vault users lower the risks while harvesting high yields. This strategy can also help users avoid liquidation effectively and ensure the safety of their funds.
3. Improve Capital Efficiency
With leveraged vaults, investors can capitalize on the borrowed money to increase the returns on their investment. Topped with the already improved capital efficiency of Uniswap V3, our leveraged vault offers a great opportunity to amplify the returns.
About Universe Finance
Universe Finance is an active liquidity management platform of Uniswap V3 based on risk ranking and quantitative strategies. Our mission is to maximise our users’ Uniswap V3 return. Universe Finance has provided a series of products and some proactive liquidity management tools to meet challenges such as increased risk, expensive gas fees, the timing and frequency of rebalancing and reinvestment.
Source:
https://medium.com/@universe.finance/leveraged-vaults-and-lending-vaults-are-live-now-72379467de0b
