Uno.Farm is a yield aggregator with a difference. It provides the best investment returns (in the form of APY) on the DeFi market
One of the most exciting features of Web3 is composability, which is the ability of blockchain applications and protocols to communicate and work with each other. They are a bit like Lego-blocks that can be combined to design new applications and possibilities.
This means that developers don’t have to build each part of a project from the ground up. Nor do they have to “know it all”. Clever combinations and partnerships with other projects can lead to speedy and powerful innovations.
Uno.Farm has been particularly successful in developing partnerships with others and so has rapidly increased the functionality of its yield generation platform.
The most recent of these has been a partnership with 1inch which has allowed Uno.Farm to introduce Single Asset Entry to its options for yield farming.
To understand why this is important, let’s have a quick look at Uno.Farm.
UNO’s unique value proposition
Uno.Farm (UNO) is a yield aggregator with a difference. Not only does it aim to provide the best investment returns (in the form of APY) on the DeFi market, but it also does so with the least possible risk to users and with a commitment to simplifying processes, saving time and lowering the barriers to entry.
UNO addresses some of the friction experienced by DeFi users:
• The need to navigate multiple UIs and blockchains
• Changing APYs in pools and the need to move liquidity manually from one yield source to another to maximize returns
• Extremely complicated protocols, not built for the mass market
• Risk of loss on unsafe protocols
• Changing APYs in pools and the need to move liquidity manually from one yield source to another to maximize returns
• Extremely complicated protocols, not built for the mass market
• Risk of loss on unsafe protocols
UNO’s unique value proposition is that its Autostrats solution capitalises on APY volatility.
Autostrats automatically switches liquidity across token pairs, pools, protocols and even blockchains to find the pool with the highest APY return.
• For example, it might switch a USDT-DAI pool on Quick Swap, where the APY is 20%, to Sushi Swap, where the same pair is returning 25%.
• Or it converts tokens to find the best pair. So, it might change from USDT-DAI to USDC-DAI, on the same protocol or a different one.
• Or it converts tokens to find the best pair. So, it might change from USDT-DAI to USDC-DAI, on the same protocol or a different one.
UNO analyses and lists hundreds of carefully selected pools across the DeFi system. An investor needs only to identify a pool as a starting point, and invest the tokens required for that pool.
UNO then takes over, automatically reinvesting interest at optimal intervals, switching pools and tokens for maximum return, and providing detailed analytics to track it all.
What is Single Asset Entry — and does it matter?
Single Asset Entry (SAE) makes UNO’s relatively simple process for investment even simpler.
• Step one remains the same: Select a pool — for example, USDT-DAI on Quick Swap
• Step two is simplified: Instead of having to convert the tokens in your wallet to the tokens in the pool, you can use any token in your wallet to invest in any pool.
So you might use MATIC to deposit into a USDT-DAI pool. The 1inch Aggregator Router swaps the deposited asset automatically into the pool tokens.
Withdrawals are just as simple. You can withdraw at any time and in the token of your choice.
And here’s a heads-up: The current system allows for swapping of tokens within one chain only. Future development includes automated bridging — for example, one click to deposit USDT from Polygon into ETH-MATIC on BSC.
And a second heads-up: Once UNO has implemented its fiat currency gateway, you’ll be able to invest your fiat currency directly into a DeFi pool!
Let’s look at all of this in a bit more detail.
SAE, autocompounding and autostrats
SAE is not yet available for the autostrats option on UNO, where your investment is swapped automatically and repeatedly to optimise returns.
However, your investment will be increased through autocompounding:
• Like other aggregators, UNO will automatically reinvest the interest you earn from the pool, so that you earn interest on interest — in the form of APY.
• UNO reinvests only at optimal times, taking account of market conditions, gas fees, and other factors.
• In addition, UNO converts the LP tokens you receive as proof of your deposit into the base tokens and adds them to your investment in the pool.
• If you have qualified to earn farm tokens from the protocol, these tokens can also be converted and added to your investment.
And when you withdraw liquidity, you have the same list of tokens available for withdrawal as for deposit. You can search for it by name or token address.
Once SAE is applied also to Autostrats, your returns may be astonishing. Think of this scenario:
• You deposited MATIC into the USDT-DAI pool on Quick Swap at 20% APY
• After a series of automated swaps your investment is in the USDT-BUSD pool on BSC at 31.3% APY (yes, that was the real return on the day of writing)
• And you decide to withdraw your liquidity in ETH
That’s a gamechanger in DeFI!
What does SAE cost?
The DEX used by 1inch may charge a small commission for the conversion of tokens.
There is also a risk of slippage — ie a change in the token price between when you select it and the trade is done. However, 1inch tries to minimise this by giving a slippage rate on the frontend before you make a swap. If it seems high, you still have the options of using LP coins or using the two tokens in the pool.
The good news is that UNO does not charge any fees or commissions for SAE options.
And UNO will also not provide the SAE option to tokens or pools that have not been pre-audited and verified or seem to have insufficient liquidity.
In summary ….
UNO has added Single Asset Entry as an easy and simple option for users to make deposits or withdrawals from DeFi pools.
The option has been made possible by a partnership with 1inch and its capability to convert any token into the tokens required for investment into pools.
While this might seem like a small addition to the UNO platform, it has the potential to revolutionize customer experience.