As the crypto market approaches the twelve-year mark, it’s vital to recognize the advancements made to date. For years, developers have tried to figure out a way to offer crypto CETFs to investors. These unique financial instruments change the game and provide institutional investors a safer on-ramp into the blockchain sector.
What’s all the CETF Hype About?
When it comes to crypto exchange-traded funds (CETFs)s, the hype is real. CETFs provide users a more secure and stable alternative than trading their cryptocurrencies via an exchange. Surprisingly, when you trade a CETF, you’re not actually trading any crypto directly. Instead, you trade partial ownership over a bundle of crypto assets.
Investors desire access to these funds because they are less risky than trading cryptos directly for a couple of reasons. For example, let’s say that you are a major financial institution. You want to participate in the crypto market because you recognize the limitless upside to the industry, however, due to the lack of a solid regulatory framework, you are unable to purchase and trade cryptocurrencies while staying within your risk parameters.
Avoid Regulatory Concerns
Your shareholders are uncomfortable with the risk of regulators shutting down your investment or the projects you invested in. Additionally, you have other regulatory concerns involving the creation of new crypto legislating that could affect your investment’s profit margins in the future. These concerns can range from tax concerns to a risk of crypto projects being deemed illegal investments.
All of these reasons and more are the fuel that drives the continuous push for more CETFs in the market. However, despite this growing demand, it’s proven to be extremely difficult to get regulatory approval for these services. Luckily, one firm pioneered these efforts and has successfully figured out how to offer its users access to these versatile financial instruments.
Unicap is a full-spectrum DeFi platform that offers users access to a variety of new-age features and services designed to take their investment experience to the next level. Anyone can easily earn a passive income using the Unicap protocol. Here’s how the system works.
Uinicap’s CETF is built around a diverse basket of blockchain-based assets. Users gain access to the most lucrative projects in the market. You can even select what projects you want to add to your own custom CETF. Once you have the CETF that meets your criteria, you are ready to begin investing. Notably, Unicap’s CETF protocol automatically tokenizes the fund and divides ownership of it into separate tokens. These tokens are what are held by investors.
In this strategy, token holders act as the indirect owners of the fund. They exercise all the rights of a direct owner in that they are entitled to a profit share of any revenue generated from the fund’s appreciation. Also, when it comes time to sell the investment, these token holders receive a percentage of the total sales price proportionate to their percentage of ownership in the fund.
Unicap Does more than CETFs
Another awesome feature provided by Unicap is their DeFi system known as Unicap.Finance. This next-gen portal provides a streamlined approach to crypto investing. Users enjoy access to all of your basic banking features such as deposits, withdrawals, and even taking out loans.
Cryptocurrency Loan Protocol
Unicap shows its pioneering side through its advanced cryptocurrency loan protocol. This yield farming feature allows anyone to earn a passive income with no prior technical or financial experience. Users earn rewards for providing liquidity to other users via a liquidity pool. Other users can borrow funds from this pool with interest.
The platform leverages an autonomous system to determine interest rates based on the Unicap supply and demand for the project. Specifically, the system evaluates the total size of loans and the amount of fund supply based on liquidity. This data is combined with the Uniwap stats to come up with your final interest rate.
Lending Loan Quotas
Anyone can become the bank and earn interest with Unicap. When a user decides to lend their crypto, the process begins with the person locking up their funds in a Unicap liquidity smart contract. The system will then take into account the details of your request such as the amount you staked in the pool and the timeframe you lock these funds.
The system then calculates the exact amount of cryptocurrency you can lend out to other Uniswap users. Since the entire process is automated, it’s very simple for new users to navigate. You just pick out how much crypto to lend, and the rest is done for you.
Instant Loan Approval
Those seeking to get a loan also enjoy a more efficient approach. The network provides loan applicants with instant approvals. This speeds up the entire process and provides more liquidity to the system as loan turnarounds are increased. Amazingly, the introduction of the liquidity pool allows both borrowers and lenders to participate and payback loans as they see fit.
In the Unicap space, UCAP tokens serve multiple roles. These tokens are what investors receive when they invest in a CETF. Notably, UCAP Tokens live on the Ethereum blockchain and adhere to the ERC-20 token standard. When you invest in a CETF, the initial 90% of your investment remains collateralized via a combination of cryptocurrency and liquidity tokens. In total, there will be 100,000,000 UCAP tokens issued publicly.
Unicap Lets You Earn Today
Unicap has pushed the boundaries of functionality with its latest venture. This platform incorporates all the hottest DeFi features available today. Additionally, it’s the only DeFi platform offering CETFs to users currently. Unicap fills a large niche market in the sector. Consequently, its popularity is sure to increase as the platform’s benefits become better understood by mainstream investors.
Originally published at https://www.cryptofolds.com on October 25, 2020.