How Unreal Finance is Facilitating the Evolution of DeFi
A cursory glance at the slew of DeFi projects that have taken shape over the last 12 months seems to reveal that the market is saturated with seemingly endless amounts of fresh projects launching. Once you understand that, it’s easy to draw the conclusion that the market itself is overvalued and there are no truly innovative players with the ability to further accelerate the progress of decentralized finance.
However, once in a while a project comes along that has the power to revolutionize the way we think about this industry itself, to shift the very ground underneath our feet. Unreal is one of those projects.
Why Wait?
Time is precious. The team at Unreal Finance knows that better than most, which is why we built efficiency and speed into the very fabric of our project. At the core of the Unreal protocol is the ability to maximize your time — or rather yield — over time. Unreal is best expressed as a question: “why wait for your yield?”. After all, your principal will remain locked as this is necessary to fulfil the terms of the smart contract, so why can’t you enjoy the benefits of the yield upfront? It’s a seemingly simple question, but until Unreal, no one had dared to effectively answer it.
“With Unreal at its most fundamental level what we are talking about is arbitrage…. but with time.”
- Ishan Garg, Founder and CEO
As outlandish as that might seem, to really understand the value in this protocol is to realize this isn’t another lending platform, DEX or yield farm. Unreal is providing the ability to tokenize your expected yield then move that yield from the future into the present. To have your future rewards in your hands today, that could be valuable indeed. Afterall, how many opportunities have you had to let pass by not due to lack of funds but due to lack of liquidity?
One of the key distinctions between professional investors and retail investors is that pros know to always hold some liquidity back in order to take advantage of market events and new unexpected opportunities, whereas retail tends to go ‘all in’ on whatever idea they feel is most appealing at the time. This can pay off big, as the GME crowd found out earlier this year, but it does lead to frequent missed opportunities and a higher overall risk profile.
For the first time, Unreal allows you to operate to the full benefit of both strategies; you can be all in — reaping the rewards from your favorite protocol — while you tokenize and trade your earned interest to take advantage of new opportunities, which can lead to higher expected profit and decreased risk.
Read about the slew of use cases unlocked by Unreal here:
Paving the Way for Institutional Adoption
Within the DeFi community, many believe that as the industry matures and grows, it will outcompete legacy systems and eventually naturally absorb traditional finance. As adoption grows, early adopters will reap outsized returns, forcing reluctant players to adopt it as the clients of the legacy institutions. However one thing to note within this narrative is that in order to do this, the DeFi ecosystem has to be able to accommodate the depth and breadth of complexity that exists within the legacy system.
Fund managers will need to be able to see how they can operate within the new system before they move their operation over. It is therefore vitally important that we work to accommodate as many aspects of the legacy system into DeFi as possible. This is where Unreal shines.
With the introduction of interest rate markets the likes of which Unreal will help to create, we are one step closer to this goal. The legacy system relies on complex interest rate derivative products such as interest rate swaps and interest insurance that is built into many of their core products. Until now there were no such products available within the DeFi sphere operating effectively.
In order to provide true utility, it is key that those like the Unreal team who are actively developing in the DeFi space work to encourage the smoothest adoption by institutional money; their products should be built with this in mind.
Conclusions: Unreal Represents DeFi Evolution!
With any truly revolutionary innovation, once its utility is proven and understood by even a small section of the population, its use then begins an inevitable, exponential rise as it conveys such an advantage to its users that it represents a quantum leap in ability. We believe that Unreal will function as an additional layer on top of the DeFi ecosystem, being utilized by both retail and institutional investors.
Unreal is a true evolution in decentralized finance, coming to the space very soon!
About Unreal Finance
Unreal Finance is a decentralized protocol that allows users to tokenize the yield generated by popular lending protocols such as Compound, Aave, UniLend etc. By tokenizing their yield, users can lock in their interest rate thus getting a fixed interest rate; using Unreal Finance, a user can instantly sell their unrealised yield, effectively locking their interest rate at a fixed price. Moreover, traders can now speculate on the unrealised yield.
The Unreal Finance team would like to thank all of our early supporters for their interest and support thus far. We’re at the beginning of a long and very exciting journey. Future yield will be tokenized, and together we’re about to usher in this new paradigm in decentralized finance.
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