Future Proof Futures: Installment #2

Unreal Finance
3 min readOct 5, 2021

As we demonstrated last week in our comparative analysis of Unreal & Alchemix, the idea of yield futures and interest rate swaps have made their way into crypto. This week we will be examining the key differences between Unreal & Pendle Finance, which claims to “allow traders a more capital-efficient way to earn profits.”

Even with DeFi taking the world by storm, there’s only so much room on the market for competitors who help institutional players manage their risk. Our intent is to help you make the best decision for you, even if that isn’t us. Thus, begins our analysis.

As you’ll see from the same graphic we referenced last week, Pendle Finance lacks many of Unreal’s parameters for accelerating DeFi with functionality and design.

The main difference between Pendle and Unreal is the much greater flexibility that Unreal’s advanced multichain nature & widespread compatibility allows. Because of it, Unreal is retail-friendly, offers L2 support for fast and nearly free transactions, and can offer support for any platform with the appropriate infrastructure. The range of tools that can be built on top of the Unreal protocol is truly limitless.

All the while, Unreal also offers many of the parameters by which Pendle is bound, namely: a governance model, tokenization of yield, active yield trading, and a guaranteed stable rate. However, Unreal’s flexibility offers a true advantage in that it encourages developers to create their own products by building on top of the Unreal protocol. Thereby creating a multiplicity of different financial products and tools like yield insurance, which would act similarly to the interest rate swaps that are common in traditional finance markets.

DeFi has been gathering considerable steam over the last year. Many institutional players are entering the market; however, due to its highly specialised nature and associated volatility, institutional investors have found themselves struggling to integrate their traditional investment services into the cryptosphere.

The powerful tools & adaptive framework which Unreal Finance provides gives institutions & complex users the ability to create unique investment products on top of the initial options available, allowing them to adapt crypto products to suit their finance needs, whatever they may be.

We’re excited to see the endless possibilities that our advanced users come up with. Unreal provides a powerful set of tools for institutions & tech heavy users to create complex products — such as yield insurance and so much more that we haven’t even yet begun to think of — for their clients.” — Ishan Garg: Founder & CEO

As we anxiously await our upcoming Beta launch, now is the time to join our growing, amazing community of DeFi enthusiasts like you! Stop by any of our social platforms today to connect with thousands of people who share your interest in decentralized finance and maybe much more.

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