unimex

In Unimex, a central factory smart contract deploys lending pool contracts, which allow users to lend ERC20 and BEP20 tokens for leveraged trading. Unimex ETH and Unimex BSC currently use default ETH and BNB lending pools respectively. This is necessary for the functioning of a complete ETH/BNB denominated margin trading platform, since ETH/BNB must be lent for leveraged longs. Unimex only permits the creation of lending pools for tokens that are trading within an ERC20-ETH Uniswap pair or an BEP20-BNB pair. Lending pools cannot be created for tokens which are only trading within ERC20-ERC20 pairs on Uniswap or BEP20- BEP20 on Pancakeswap, although Stablecoin pairs are being added.
On Unimex, lending pools are created by calling a function on the Unimex factory which checks that the ERC20-ETH pair is trading on Uniswap or BEP20-BNB on Pancakeswap by querying the automated market maker’s factory. The contract also ensures that lenders seed a sufficient amount of the respective ERC20 or BEP20 tokens to the aforementioned pool.

Based on AMM liquidity, BEP20 and ERC20 tokens are eligible for the creation of lending pools. Currently only vetted pairs are added by the team. As a result, a measure of decentralization is sacrificed at this juncture as necessary preventative measure to combat the high-manipulability of low-liquidity pools. Moreover, with on-chain oracles so central to the functioning of the protocol, the effect of permitting free reign on the integration of Uniswap pairs of low or dubious liquidity (e.g. pairs from fraudulent projects which are likely to have most of their liquidity pulled by an admin) could be catastrophic for lenders. In the medium term, pair governance will be made decentralised. As a result, users will be able to decide on future pairs and leverage by burning/staking UMX. All collateral from borrowers is denominated in ETH/BNB, although Stablecoin support is in development. Lenders receive fees in the denomination of the asset borrowed. This means that
ETH borrows will yield ETH fees and ERC20/BEP20 borrows will yield ERC20/BEP20 fees, distributed among borrowers proportional to their stake in the respective lending pools. Lenders receive 0.2% of all margin trading volume, as well as 10% yearly interest.