$46,560.70
$3821.93
$528.20
$175.53
$25.00
$2.02
$0.85
Introducing Unit Network
Unit Network is a layer 1 blockchain built using the Substrate framework by Parity Technologies / Web3 Foundation. It provides the technological and economic infrastructure for mainstream adoption of the Token Economy – a near-future in which millions of tokens fuel borderless economies to power the globe.
As a free, simple and secure pathway for businesses, projects and individuals to create their own crypto-tokens, also known as ‘community’ or ‘social’ tokens. anyone in the world can now participate in, and benefit from all token-based economies they have helped to build, a new paradigm of crowdfunding and shared ownership.
Below we will briefly cover the most elements of the Unit Ecosystem. For additional information please see the links below or join the Unit Network Discord to ask any questions you may have.
The Unit Framework
UNIT
Foundation
- The decentralised organisation that the Unit Core Team members (200ppl) are part of, which support the growth of the Unit Network and token economy.
UNIT
Network
- No. 1 decentralised token builder platform that allows anyone to easily create tokens with powerful features like a bank / treasury / sale / polls / leader board and much more
UNIT
Token
- Token that powers/underpins the Unit Network
- Backed by underling assets and grows by locking 0.5% of every exchange within Unit Network, into the Unit Treasury.
UNIT
INITIATIVES (C.V.M.U.N)
In our effort to help accelerate understanding and adoption of tokenisation, each of these initiatives form a separate app that can be accessed from within Unit Network and are freely available to all users.
- UNIT CONFERENCE - A community led, bi-annual series of Crypto, City
and Industry forums held online in TedX style format. - UNIT VENTURES - A 10 week tokenisation program helping individuals
and business to build their own Token economies. - UNIT MASTERS - A free, 6 week program focused on the fundamentals
of blockchain, cryptocurrencies and tokenization. - UNIT UNIVERSITY (Coming soon) - A knowledge resource repository for the Token economy with updated university papers and articles covering existing/new projects + people.
- UNIT NEWS (Coming soon) - Daily news, interviews and updates for the Unit Token economy.
SIX TYPES OF TOKENS:
- ESTABLISHED COINS & TOKENS
BTC / ETH / BNB / DOT / SOL / ADA / MATIC (more coming soon!) - UNIT TOKEN
Powering Unit Network and an index of the token economy, backed by established coins and tokens which are held in the treasury. - STABLE TOKENS
22 Crypto-backed stable tokens to represent each major currency. - INDUSTRY / CITY TOKENS
Indexes of the Unit Network Token economy, backed by established coins and tokens + UNIT - AGENCY / FUND TOKENS
Supporting the implementation and growth of community and social tokens (analogous to web development agencies, advisory firms or investment funds), backed by established coins and tokens + UNIT + Industry / City / Stable tokens - USER GENERATED SOCIAL AND COMMUNITY TOKENS
All the Individuals and businesses within the social and community token economy, backed by established coins and tokens + UNIT + Industry/City/Stable + Agencies / Funds
Philosophy
FROM ITS INCEPTION, UNIT NETWORK HAS SERVED AS A TRUSTLESS, COMMUNITY OWNED TOKENISATION INFRASTRUCTURE BUILT FOR WEB3
Inspired by Satoshi’s vision of an egalitarian future, we have long committed to the ideals of permissionless access, distributed security and immutability as the essential components for accelerating access to financial services without concern of discrimination or counter-party risk.
Unit Network embraces the tenets of neutrality and trust minimisation by offering a free and secure decentralised protocol, accessible to anyone in the world.
In the spirit of continued innovation and platform evolution Unit Core Team members will strive toward equitable protocol development and continued education of the expanding crypto community.
As such, the Unit Foundation enshrines Unit Network as a publicly-owned and self-sustainable infrastructure while continuing to carefully protect its indestructible and autonomous qualities.
Unit Tokenomics
- Ticker: UNIT
- Type: Utility Token
- Initial Sale Price: 10c USDU
- Total Supply: 100,000,000
- Total Sale Supply: 66,000,000
- Total Operations: 14,000,000
- Core Team Distribution (200 People): 20,000,000 (5 year vest, 3 year cliff)
UNIT HOLDERS CAN:
1. Redeem - Sell tokens back to the UNIT Treasury to redeem their share of the assets held.
2. Staking - Stake your UNIT and receive exchange fees when people exchange USDU-UNIT.
3. Vaults - Lock UNIT to take out loans.
2. Staking - Stake your UNIT and receive exchange fees when people exchange USDU-UNIT.
3. Vaults - Lock UNIT to take out loans.
USERS CAN EARN UNIT BY:
1. Staking it in the UNIT Liquidity Pool
2. Receiving 0.5% on exchange fees from your referrals
3. Buy/sell it via the UNIT exchange
4. Accept UNIT as payment for products or services via any tokens store.
2. Receiving 0.5% on exchange fees from your referrals
3. Buy/sell it via the UNIT exchange
4. Accept UNIT as payment for products or services via any tokens store.
NETWORK FEE DISTRIBUTIONS
There is a 2% fee on every exchange on the network that is split equally four ways:
0.5% - To the user that invited / referred the exchanger
0.5% - To the exchange pool and shared by the liquidity providers
0.5% - To the UNIT treasury
0.5% - To the respective tokens treasury
Note: When exchanging UNIT / USDU 1% is sent to the UNIT Treasury.
There is a 1% fee on withdrawals split two ways:
0.5% - To the Unit Treasury
0.5% - To the Vault that processed the withdrawal
0.5% - To the user that invited / referred the exchanger
0.5% - To the exchange pool and shared by the liquidity providers
0.5% - To the UNIT treasury
0.5% - To the respective tokens treasury
Note: When exchanging UNIT / USDU 1% is sent to the UNIT Treasury.
There is a 1% fee on withdrawals split two ways:
0.5% - To the Unit Treasury
0.5% - To the Vault that processed the withdrawal
Exploring Core Features
THE TREASURY
Every token created on Unit Network has access to several powerful features to help creators build and manage their token economies, the most important of which is arguably the Treasury.
Once digital assets are transferred into a tokens' treasury they are only redeemable by the token holders, who can choose to sell their tokens back to the treasury and redeem whatever digital assets have been sent there.
There are two ways that digital assets are sent to a tokens treasury. The first is by the token creator who can transfer funds from their Unit bank or wallet. The second is during an exchange with the token, which will automatically send 0.5% of the exchange fee to the tokens treasury.
Therefore, we now have a mechanism by which any user can establish the floor price of a token and substantiate the tokens value with deflationary digital assets like Bitcoin. A potential formula for token price and valuation could now look like:
Once digital assets are transferred into a tokens' treasury they are only redeemable by the token holders, who can choose to sell their tokens back to the treasury and redeem whatever digital assets have been sent there.
There are two ways that digital assets are sent to a tokens treasury. The first is by the token creator who can transfer funds from their Unit bank or wallet. The second is during an exchange with the token, which will automatically send 0.5% of the exchange fee to the tokens treasury.
Therefore, we now have a mechanism by which any user can establish the floor price of a token and substantiate the tokens value with deflationary digital assets like Bitcoin. A potential formula for token price and valuation could now look like:
Token Valuation = NPV Treasury + NPV Token Standalone + NPV Transparency Signal
*NPV Transparency Signal = The value that comes from growing the treasury consistently, and/or the gap between communicated behaviour (e.g. put 10% of business profits into treasury each month) and observed behaviour of token project team.
*NPV — Net Present Value: Used to calculate the current total value of a future stream of payments.
*NPV Transparency Signal = The value that comes from growing the treasury consistently, and/or the gap between communicated behaviour (e.g. put 10% of business profits into treasury each month) and observed behaviour of token project team.
*NPV — Net Present Value: Used to calculate the current total value of a future stream of payments.
All financial assets are typically valued based on an assessment of future income paid to the holder (bonds - interest, common and preferred stocks - dividends, real estate - rent, etc.) discounted to the present. However, an accurate forecast of both the income and the discount rate are relative unknowns that we can spend a lot of time to trying to decipher.
In the Unit token economy, the Treasury is a transparent, immutable way by which value can be distributed to token holders. Whatever is added to the Treasury become the reserve assets of the enterprise and gives token holders ownership of those assets equal to their proportion of token holdings.
The key difference between an equity stake (to which traditional dividends are paid) and a token with an aggregation of digital assets (the Treasury) is that equity holders can't spend or invest their equity stake elsewhere in the economy. Instead, they need to be paid dividends in a currency that other people accept in order to bridge the gap between their investment in this equity and other investments they want to make.
Brilliantly, token holders don't need a bridge, the gap is closed. They don't need to reach into the Treasury and take out their "dividends" because they can convert one token to another or spend that token directly within that token's ecosystem. The value is unlocked and flows freely.
In the Unit token economy, the Treasury is a transparent, immutable way by which value can be distributed to token holders. Whatever is added to the Treasury become the reserve assets of the enterprise and gives token holders ownership of those assets equal to their proportion of token holdings.
The key difference between an equity stake (to which traditional dividends are paid) and a token with an aggregation of digital assets (the Treasury) is that equity holders can't spend or invest their equity stake elsewhere in the economy. Instead, they need to be paid dividends in a currency that other people accept in order to bridge the gap between their investment in this equity and other investments they want to make.
Brilliantly, token holders don't need a bridge, the gap is closed. They don't need to reach into the Treasury and take out their "dividends" because they can convert one token to another or spend that token directly within that token's ecosystem. The value is unlocked and flows freely.
THE VAULT
The Unit Network Vault is a multi-faceted feature that allows any UNIT Token holders to borrow against their UNIT as collateral and most importantly of all, improve platform security by facilitating decentralised token wrapping.
- Facilitates wrapping of crypto (BTC / ETH / DOT etc) onto the Unit Network in a decentralised way (unlike WBTC)
- Much less sell pressure for UNIT (as people can get a loan against UNIT instead of selling it on the market)
- More UNIT locked up over time (as it will be held in Unit vaults)
- Allows anyone to receive staking rewards for wrapped crypto tokens on the Unit Network (BTCU/ ETHU / DOTU etc)
- More demand and buy pressure for UNIT, as a reserve for the vaults with no risk of being liquidated/margin called. As this way the deposit / withdraws work is to ensure that the most over collateralised vaults receive the deposits / wrapping, and the least collateralised vaults handle withdraws / unwrapping - balancing it over time.
Decentralised Wrapping:
Non-native level 1 tokens like Bitcoin must be “wrapped” to be used within the Unit Network ecosystem. Wrapping is common in blockchain today, but the native tokens that are wrapped are generally held by a single custodian and therefore subject to centralised risks. Unit Network solves this problem with decentralised wrapping:
1. A UNIT token holder creates a “vault” dedicated to wrapping a particular level 1 token – e.g. BTC – by entering a personal wallet address off the Unit Network chain and then “locking” a chosen amount of UNIT in the vault.
2. Another user then deposits a level 1 token (e.g. BTC) to Unit Network. That is:
a. the depositor is assigned a vault based on the token they wish to deposit (e.g. BTC) and sends this native token to the assigned vault-creator’s personal wallet off the Unit Network chain.
b. the vault then mints a wrapped token (e.g. BTCU) equivalent to their deposit which is then sent to their personal wallet to be used on Unit Network as desired.
De-central Banking:
Deposits to Unit Network become zero-interest loans to vaults. Just as traditional banks use the deposits of their members to issue loans / invest, vault creators can also use the borrowed level 1 tokens to earn a return.
UNIT is locked as a vault’s reserves until the vault’s loan balance is fully repaid – i.e. a withdrawal is processed.
Unit Network automatically allocates each new deposit to the vault with:
(1) the highest reserve ratio (current UNIT/Loan value), and, if tied,
(2) the most UNIT.
Withdrawals from the Unit chain pay a 1% fee, split equally between the UNIT treasury (0.5%) and the vault that processes the withdrawal (0.5%). Requests go into a queue, and vaults compete to process withdrawals and earn fees.
Free-Market Banking:
Today, banking is centralised. For decades, bank depositors ignored bank safety and relied on inflationary government deposit insurance to protect their funds, resulting in extremely low reserve ratios set by fiat and a rickety banking system prone to collapse. In a free market, bank depositors care about banks’ reserves, and banks compete for customer deposits by demonstrating prudent reserve management and safety. On Unit Network, decentralised vaults wrap deflationary digital stores of value onto Unit Network and into UNIT’s treasury, making UNIT the pristine reserve asset of the world’s de-central bank.
EXAMPLE:
Let's say you have 1000 UNIT in your wallet and you create a vault with this 1000 UNIT. UNIT has a current price / value of $2 so the total collateral value of 1000 UNIT is $2000.
Unit Network then gives you a loan for 2 SOL ($250) - which was a user depositing SOL onto the Unit Network to become SOLU - so you can now stake, spend or sell this 2 SOL.
Your 1000 UNIT is now locked / frozen until you either pay back the 2 SOLU ($250) or handle a withdrawal of 2 SOL at which point the 1000 UNIT will be credited back to your wallet while also crediting you with 0.5% ($1.25) for handling the withdrawal.
FAQ:
Question - why would someone lend money to someone with UNIT as collateral?
As they want and need to wrap their tokens in order to partake in the token economy, and the vaults allow them to do it in a decentralised way.
Question - what are the risks involved in creating a vault?
Minimal risk due to not having to worry about margin calls (unlike borrowing on Celsius / Nexo etc). As even if the value of your UNIT drops, you still only have to pay back the original loan and your UNIT will be immediately returned to your wallet.
Question - How does one measure the “riskiness” of a VAULT if all vault reserves are in UNIT?
Based on (in order of priority) :
1) ratio of UNIT in vault to loan amount taken by vault
2) amount of UNIT in vault
So even if:
Vault A has 100,000 UNIT - with 0.5 BTC loan
Vault B has 20,000 UNIT - with no BTC loan, Vault B is less risky, as it has no loan against it.
Question - When I lock up UNIT as collateral and it increases in price, will I be able to borrow more BTC?
Yes. Although the borrowing happens automatically, including the amounts that you borrow. You are just adding UNIT to your BTC vault, and the UNIT network will decide how much of a loan you get as reward for your participation in the decentralised wrapping process.
Question - What happens if it decreases in price again - will I then have an under-collateralised loan?
Yes. Although this is highly unlikely to be the case as the loan given will be a fraction of the UNIT reserves locked up, noting again that only the least risky vaults on the network are given loans in the first place.
However, in the event that the UNIT reserves do become worth less than the loan, instead of it being dumped onto the market/liquidated like a missed margin call for a leveraged trader (which has the effect of further depressing the price/causing a downward spiral). It is effectively stays locked up/removed from the circulating supply until it makes sense for the borrower to pay back the loan.
Question - How much can I under-collateralise until the network will not give me loans anymore?
If you are under-collateralised, or anywhere close to it. The Unit Network will not give you a loan, as you become a more more risky vault relative to the others on the network.
Non-native level 1 tokens like Bitcoin must be “wrapped” to be used within the Unit Network ecosystem. Wrapping is common in blockchain today, but the native tokens that are wrapped are generally held by a single custodian and therefore subject to centralised risks. Unit Network solves this problem with decentralised wrapping:
1. A UNIT token holder creates a “vault” dedicated to wrapping a particular level 1 token – e.g. BTC – by entering a personal wallet address off the Unit Network chain and then “locking” a chosen amount of UNIT in the vault.
2. Another user then deposits a level 1 token (e.g. BTC) to Unit Network. That is:
a. the depositor is assigned a vault based on the token they wish to deposit (e.g. BTC) and sends this native token to the assigned vault-creator’s personal wallet off the Unit Network chain.
b. the vault then mints a wrapped token (e.g. BTCU) equivalent to their deposit which is then sent to their personal wallet to be used on Unit Network as desired.
De-central Banking:
Deposits to Unit Network become zero-interest loans to vaults. Just as traditional banks use the deposits of their members to issue loans / invest, vault creators can also use the borrowed level 1 tokens to earn a return.
UNIT is locked as a vault’s reserves until the vault’s loan balance is fully repaid – i.e. a withdrawal is processed.
Unit Network automatically allocates each new deposit to the vault with:
(1) the highest reserve ratio (current UNIT/Loan value), and, if tied,
(2) the most UNIT.
Withdrawals from the Unit chain pay a 1% fee, split equally between the UNIT treasury (0.5%) and the vault that processes the withdrawal (0.5%). Requests go into a queue, and vaults compete to process withdrawals and earn fees.
Free-Market Banking:
Today, banking is centralised. For decades, bank depositors ignored bank safety and relied on inflationary government deposit insurance to protect their funds, resulting in extremely low reserve ratios set by fiat and a rickety banking system prone to collapse. In a free market, bank depositors care about banks’ reserves, and banks compete for customer deposits by demonstrating prudent reserve management and safety. On Unit Network, decentralised vaults wrap deflationary digital stores of value onto Unit Network and into UNIT’s treasury, making UNIT the pristine reserve asset of the world’s de-central bank.
EXAMPLE:
Let's say you have 1000 UNIT in your wallet and you create a vault with this 1000 UNIT. UNIT has a current price / value of $2 so the total collateral value of 1000 UNIT is $2000.
Unit Network then gives you a loan for 2 SOL ($250) - which was a user depositing SOL onto the Unit Network to become SOLU - so you can now stake, spend or sell this 2 SOL.
Your 1000 UNIT is now locked / frozen until you either pay back the 2 SOLU ($250) or handle a withdrawal of 2 SOL at which point the 1000 UNIT will be credited back to your wallet while also crediting you with 0.5% ($1.25) for handling the withdrawal.
FAQ:
Question - why would someone lend money to someone with UNIT as collateral?
As they want and need to wrap their tokens in order to partake in the token economy, and the vaults allow them to do it in a decentralised way.
Question - what are the risks involved in creating a vault?
Minimal risk due to not having to worry about margin calls (unlike borrowing on Celsius / Nexo etc). As even if the value of your UNIT drops, you still only have to pay back the original loan and your UNIT will be immediately returned to your wallet.
Question - How does one measure the “riskiness” of a VAULT if all vault reserves are in UNIT?
Based on (in order of priority) :
1) ratio of UNIT in vault to loan amount taken by vault
2) amount of UNIT in vault
So even if:
Vault A has 100,000 UNIT - with 0.5 BTC loan
Vault B has 20,000 UNIT - with no BTC loan, Vault B is less risky, as it has no loan against it.
Question - When I lock up UNIT as collateral and it increases in price, will I be able to borrow more BTC?
Yes. Although the borrowing happens automatically, including the amounts that you borrow. You are just adding UNIT to your BTC vault, and the UNIT network will decide how much of a loan you get as reward for your participation in the decentralised wrapping process.
Question - What happens if it decreases in price again - will I then have an under-collateralised loan?
Yes. Although this is highly unlikely to be the case as the loan given will be a fraction of the UNIT reserves locked up, noting again that only the least risky vaults on the network are given loans in the first place.
However, in the event that the UNIT reserves do become worth less than the loan, instead of it being dumped onto the market/liquidated like a missed margin call for a leveraged trader (which has the effect of further depressing the price/causing a downward spiral). It is effectively stays locked up/removed from the circulating supply until it makes sense for the borrower to pay back the loan.
Question - How much can I under-collateralise until the network will not give me loans anymore?
If you are under-collateralised, or anywhere close to it. The Unit Network will not give you a loan, as you become a more more risky vault relative to the others on the network.
DECENTRALISED EXCHANGE (DEX)
Every token created on Unit Network is able to open a decentralised exchange pool most commonly known as DEX. The protocol used is called an AMM (Automated Market Maker) and is akin to project like Uniswap, Bancor, SushiSwap, PankcakeSwap etc.
An important feature of AMM's is that it allows projects / tokens that may initially have low liquidity to create a market that sets a price for the token and facilitates buying and selling, and of course offers an alternative to centralised order-book exchanges.
While the process of using these decentralised exchanges is relatively simple there is some complex logic which underpins the AMM protocol and we encourage all users to take some time to understand how they work to ensure they are making considered trades. Please see the links below for recommended reading on AMM's. To further assist traders a confirmation screen will show a detailed breakdown of the important information a user can review before executing the desired trade.
Medium
Bancor
Uniswap
A final note is that ALL exchange pools on Unit Network must have a USDU pairing:
BTCU / USDU
ETHU / USDU
VILLAGE / USDU
Etc...
It is NOT possible to create an exchange pool against other tokens:
ETHU / BTCU
DOT / VILLAGE
SOLU / ADAU
Etc...
An important feature of AMM's is that it allows projects / tokens that may initially have low liquidity to create a market that sets a price for the token and facilitates buying and selling, and of course offers an alternative to centralised order-book exchanges.
While the process of using these decentralised exchanges is relatively simple there is some complex logic which underpins the AMM protocol and we encourage all users to take some time to understand how they work to ensure they are making considered trades. Please see the links below for recommended reading on AMM's. To further assist traders a confirmation screen will show a detailed breakdown of the important information a user can review before executing the desired trade.
Medium
Bancor
Uniswap
A final note is that ALL exchange pools on Unit Network must have a USDU pairing:
BTCU / USDU
ETHU / USDU
VILLAGE / USDU
Etc...
It is NOT possible to create an exchange pool against other tokens:
ETHU / BTCU
DOT / VILLAGE
SOLU / ADAU
Etc...
STAKING & LIQUIDITY POOLS
The process of staking tokens is what allows AMM's to work in the first place. Without stakers there is nothing to trade against.
On Unit Network staking is incentivised by offering a 0.5% reward of the total trade to the staking pool as mentioned above.
On Unit Network staking is incentivised by offering a 0.5% reward of the total trade to the staking pool as mentioned above.
UNIT WRAPPED TOKENS
The wrapping and unwrapping will happen automatically when depositing and withdrawing but it is important to note that deposited crypto will function inside the network with a 'U' behind it.
Currently Unit Network supports wrapping and unwrapping of:
BTCU - Bitcoin (BTC)
ETHU - Ethereum (ETH)
BNBU - Binance Coin (BNB)
SOLU - Solana (SOL)
DOTU - Polkadot (DOT)
ADAU - Cardano (ADA)
MATICU - Polygon (MATIC)
Currently Unit Network supports wrapping and unwrapping of:
BTCU - Bitcoin (BTC)
ETHU - Ethereum (ETH)
BNBU - Binance Coin (BNB)
SOLU - Solana (SOL)
DOTU - Polkadot (DOT)
ADAU - Cardano (ADA)
MATICU - Polygon (MATIC)
UNIT STABLE TOKENS
Unit Network offers 22 crypto-backed stable tokens to increase platform utility.
Stable tokens like USDU are purchased with crypto, which is then sent to the stable token bank. Given the deflationary properties of the different crypto-currencies we support it is expected that over time these stable tokens will be over-collateralised and a means to support trading stability within the platform.
As USD is currently the global reserve currency we have adopted USDU as the primary exchange pair for all token DEX's within the network.
Currently Unit Network offers:
Stable tokens like USDU are purchased with crypto, which is then sent to the stable token bank. Given the deflationary properties of the different crypto-currencies we support it is expected that over time these stable tokens will be over-collateralised and a means to support trading stability within the platform.
As USD is currently the global reserve currency we have adopted USDU as the primary exchange pair for all token DEX's within the network.
Currently Unit Network offers:
USDU - United States Dollar
GBPU - British Pound
EURU - Euro
AUDU - Australian Dollar
CADU - Canadian Dollar
BRLU - Brazilian Real
ZARU - South African Rand
TRYU - Turkish Lira
RUBU - Russian Ruble
JPYU - Japanese Yen
SGDU - Singapore Dollar
GBPU - British Pound
EURU - Euro
AUDU - Australian Dollar
CADU - Canadian Dollar
BRLU - Brazilian Real
ZARU - South African Rand
TRYU - Turkish Lira
RUBU - Russian Ruble
JPYU - Japanese Yen
SGDU - Singapore Dollar
NOKU - Norwegian Krone
MXNU - Mexican Peso
PLNU - Polish Zloty
INRU - Indian Rupee
SEKU - Swedish Krona
NZDU - New Zealand Dollar
HKDU - Hong Kong Dollar
CNYU - Chinese Yuan
CHFU - Swiss Franc
KRWU - South Korean Won
IDRU - Indonesian Rupiah
MXNU - Mexican Peso
PLNU - Polish Zloty
INRU - Indian Rupee
SEKU - Swedish Krona
NZDU - New Zealand Dollar
HKDU - Hong Kong Dollar
CNYU - Chinese Yuan
CHFU - Swiss Franc
KRWU - South Korean Won
IDRU - Indonesian Rupiah