Unite Finance, a new DeFi platform on the Harmony network, has launched a stablecoin pegged at a 1:1 ratio with the Harmony ONE token. The launch brought over 70% more users to the platform week over week.
The UNITE token is intended to serve as the backbone of the growing DeFi ecosystem on Harmony, bringing high APRs to ONE holders on the network. The Unite Finance team stated recognized the need for an algorithmic stablecoin pegged to ONE on Harmony after being inspired by Tomb.finance. Tomb runs on the Fantom blockchain and is pegged to 1:1 to the price of FTM. Tomb has found success and helped the Fantom DeFi ecosystem expand, pushing total value locked (TVL) on the network to over $7 billion.
The Harmony DeFi platform has attracted almost 7,000 active users since launching on December 24, 2021. Driving over 423,000 transactions and nearly $2 million in trading volume.
What is Unite Finance
Unite Finance is a DeFi protocol on the Harmony blockchain. The protocol’s underlying mechanisms are designed to ensure a peg of UNITE:ONE is achieved, and once achieved, it is maintained to establish UNITE as a mirrored, liquid asset to ONE. The protocol accomplishes this by introducing unique economic and game-theory centric dynamics into the market through its three tokens. These tokens are:
- Unite, or $YouUNITE – a medium of exchange
- Unite Shares, or USHARE – governance and measurement of protocol value
- Unite Bonds, or UBOND – Change Unite supply during contraction periods
Let’s dive a bit more into these three tokens, which together form the core of Unite Finance.
Unite Token
The Unite algorithmic token serves as the backbone of the ecosystem, aimed at bringing high APRs to ONE holders on the Harmony Network. The protocol’s underlying mechanism dynamically adjusts UNITE’s supply, pushing its price up or down relative to the price of ONE to keep UNITE’s peg to the ONE price.
Unite Shares
Unite Shares (UShare) are one of the ways to measure the value of the Unite Protocol and shareholder trust in its ability to maintain UNITE close to peg. During period expansions, the protocol mints UNITE and distribute it proportionally to all UShare holders who have staked their tokens in the boardroom. UShare holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Unite ecosystem and launchpad.
Unite Bonds
Unite Bonds (UBOND) primary job is to help incentivize changes in the supply of UNITE during an epoch contraction period.
What does UNITE token do?
In the short term, until the peg is achieved, UNITE is focusing on optimizing the protocol and creating wealth for early investors through the available farms and boardroom mechanisms.
Once the peg is achieved, the system’s mechanisms will focus on stability and consistency so that UNITE can function as a mirrored, liquid asset to the ONE token
A percentage of proceeds from this process go to the community-owned DAO fund. This DAO then plans to establish an Incubator and launchpad to bring growth to the entire Harmony ecosystem. For UNITE to have value, ONE needs too to have value. To make this happen a vibrant Harmony ecosystem with flourishing projects is required.
Interestingly, those looking to get UNITE are linked through to another Harmony DeFi platform ViperSwap. This decentralized exchange sees increased activity as well, possibly stimulated by the success of Unite Finance.
The Harmony network is growing fast, driven by quick transactions and the support of a great community. While the dapp ecosystem is relatively small compared to other chains, it has achieved over $1.25 billion in TVL, showing that Harmony is here to stay. Discover more Harmony dapps in the DappRadar Rankings. Interested in the Harmony ecosystem, why not give these dapps a go?
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds ETH, BTC, AGIX, HEX, LINK, GRT, CRO, OMI, IMMUTABLE X, ENS, GALA, AVASTR, GMEE, CUBE, RADAR, FLOW, FTM, BNB, SPS, WRLD, ATOM, and ADA.
