Waves, an open blockchain protocol and development toolset for decentralized applications, today announced a partnership with UNION, a full-stack protection platform for the DeFi space.
UNION will offer its collateral protection product to future lending protocols that use Waves’ Neutrino USD (USDN) and smart contract protection to the inter-chain communication protocol Gravity.
“Waves’ complete DeFi solution with a broad market reach is the perfect platform for building UNION’s complete DeFi protection,” says John Liu, CPO of UNION. “We look forward to advancing the industry together in 2021 with an inclusive, safe, and accessible portal.”
“The exponential growth of USDN allowed us to identify demand for advanced risk management and asset protection products,” adds Sten Laureyssens, Strategic Advisor for the Waves Association. “UNION’s mission to offer full-stack DeFi protection that decreases the barrier to entry for retail, while advanced enough for institutional investors, is accurately aligned with our approach.”
“As we step into 2021, our integration through Gravity will be a vital-for-growth milestone to reduce multi-layered risks in our ecosystem,” he goes on to say.
Cooperation
The near-term cooperation between UNION and Waves will include a series of liquidity provision programs including a UNN/USDN liquidity pool on Uniswap, a UNN/USDN pair on Waves.Exchange and support for the UNN/USDN pair on UNION’s Geyser liquidity pool. The exact exchange rate will be determined at the time of the pair’s creation, based on the prevalent market price.
UNION will also be used in Waves’ future products based on the lending model. For instance, users of such products will be prompted to select over-collateralization protection (OC) for a premium. In the case of a liquidation trigger, should the OC ratio fall below a specific threshold, the UNN protection product will be called to fill the portion of the OC protected while the borrower pays the remaining difference.
UNION will also collaborate with Waves on issuing a smart contract protection instrument for Gravity in Q1 2021. The product will provide additional security to the technology, ruling out human factors, such as node collusion. While Gravity utilizes mathematically proven multi-party computation (MPC) security for its assets held in decentralized custody, UNION will offer an additional protection layer for users of Gravity’s cross-chain system.
Deposits through Gravity, USDN-related dApps, or even future Waves lending protocols will initiate a prompt to add a specific protection product for a premium or forgo the protection before finalizing the deposit. UNION will render an intuitive integration and UI for the product, simplifying the asset protection process for Waves users.