📈 Origin
In the two years since its launch, 🦄 Uniswap has solidified its position as one of the mainstays in DeFi. Along with that, their protocol design has become a standard in and of itself, one in which many projects have come to derive its mechanics from.
With that, we have designed Unifarm as the next step forward in the Uniswap protocol design: an evolution. Taking Uniswap’s elegant core design, we’ve added community-oriented features that we believe help improve the design of the protocol, as well as provide further benefits to the actors involved.
🎨 Protocol Design
💧 Liquidity Provider Incentives
Of course, one of the natural questions that many may have is: “Why would someone want to provide liquidity to Unifarm, as opposed to Uniswap?”.
With Uniswap, liquidity providers only earn the pool’s trading fees when they are actively providing said liquidity. Once they have withdrawn their portion of the pool, they no longer receive that passive income. Moreover, as protocol gains traction, despite being early liquidity providers, they risk getting their return diluted as (bigger and wealthier) stakeholders such as venture funds, exchanges, mining pools join the protocol with a huge amount of capital.
With Unifarm, one can also provide some liquidity into a pool and earn rewards in the form of UNA token. However, unlike Uniswap, those UNA token will also entitle you to continue to earn a portion of the protocol’s fee, accumulated in UNA, even if you decide to no longer participate in the liquidity provision. As an early adopter to help provider liquidity, you become a significant stakeholder of the protocol.
The earnings that you’ll receive from staking will be proportional to the amount of UNA tokens you have staked versus the total amount of UNA tokens staked. Unless you continue to provide liquidity, your holdings and corresponding reward earnings will gradually be diluted.
👨🌾 Token Distribution
We are aware that many of us are existing liquidity providers in Uniswap pools. With that, we have designed the token distribution mechanics to make it as easy as possible for the existing Uniswap liquidity providers to start migrating to our protocol!
To start providing liquidity and earning UNA token, anyone holding Uniswap UNA tokens can stake those UNA tokens into the corresponding initial list of pools. Once done, they will start earning tokens once rewards starts on block 11175000. The list of eligible UNA tokens can be added per on-chain governance. So it’s every one of us who decides.
igration™️.
The initial set of available pools:
CeFi Stablecoins: USDT-ETH, USDC-ETH
DeFi Stablecoins: DAI-ETH, sUSD-ETH
Lending Protocols: COMP-ETH, LEND-ETH
Synthetic Assets: SNX-ETH, UMA-ETH
Oracles: LINK-ETH, BAND-ETH
Ponzinomics: AMPL-ETH, YFI-ETH
Delicacy (2x reward): UNA-ETH
The UNA/WETH pool gets twice the amount, so be sure to supply your UNA to uniswap to become eligible for extra yumminess 😋. Once the UNA is live, community can vote to add more eligible pools, or change the UNA weight of any pool. You guys decide!
💸 Reward Distribution
With the current Uniswap configuration, 0.3% of all trading fees in any pool are proportionately distributed to the pool’s liquidity providers. In Unifarm, 0.25% go directly to the active liquidity providers, while the remaining 0.05% get converted back to UNA (obviously through Unifarm) and distributed to the UNA token holders 📈.
🕑 Ensuring Project Sustainability (aka. Dev Fund)
Let’s ensure the long-term viability and sustainability of the project. Following suggestion from @LawMaster, 10% of every UNA distribution is set aside for developers. Hope the community won’t mind feeding us some 🍣 dinners.
⛵️ The Liquidity Migration™️
Around the first 100000 blocks from the protocol’s inception (~2 weeks), we will be migrating all the liquidity tokens staked onto Unifarm contracts. This migration will involve taking all of the Uniswap UNA tokens staked on Unifarm, redeeming them on Uniswap for the respective token pairs, and initializing new liquidity pools from those tokens. These new pools will be almost identical to the standard Uniswap pool, with the added feature that any fees accrued will be distributed to UNA token holders through the logic outlined above.
Once the migration is done, the liquidity converted will be fueling the first sets of Unifarm pools, and will bring the protocol into operation immediately. The stakers don’t need to do anything and will continue to receive UNA token rewards from providing liquidity going forward.
🍣 Protocol Usage
At the protocol and smart contract level, Unifarm shares an identical interface to Uniswap. This means that if your protocol is currently compatible with Uniswap, it should be relatively simple to integrate with Unifarm. We will work with various DeFi and other ecosystem tools to start integrating Unifarm.
🔐 Security Audit
Security is important to us. We reasonably unit test coverage and have tested that everything works on the testnet.
EDIT : Contracts have been audited by PeckShield and reviewed by Quantstamp.
We invite Trail of Bits, PeckShield, OpenZeppelin, Consensys, Certik, and Quantstamp and more to audit the contracts. First firm to confirm audit of Unifarm on its official Twitter account will win this job. We promise to pay 5 ETH of our live saving for this audit immediately after you confirm.
The contracts you’ll be auditing will be everything in the Unifarm smart contract repository, which is available at https://github.com/unifarmfinance/ and is already considered ready for the audit.
⚠️ Meanwhile, The contract for farming is unaudited, but it’s simple enough for most Solidity developers to understand. Please read through the contract before putting your UNA tokens at stake! Everything is in BETA, please use at your own risk.
💻 Smart Contracts
The contracts are available at https://github.com/unifarmfinance/ 🅦WTFPL license. Some codes are from other projects including Uniswap / Yam / Compound / OpenZeppelin and are subjected to their licenses. The followings are the list of the contracts with rough explanation:
🍣 The token contract, with COMP/YAM voting functionality.
👨🏻🍳 : Deposit UNA tokens to farm UNA.
🔪 : Collect revenues, convert to UNA, and send to SushiBar.
🍸 UNABar: Stake UNA to earn more UNA 📈.
🏛 GovernorAlpha + Timelock: Governance stuff from Compound.
🦄 UniswapV2: UniswapV2 contracts with small modification for Migration.lock 10750000. Be sure to stake your UNA Token prior to that for maximum 🍣.
💬 Join Us!
🔒Get UNA at https://app.unifarm.space
Don’t miss any update by following our twitter at twitter.com/unifarm.space
