What is unshETH? One of the pioneering projects in the LSDfi segment, gaining a lot of market attention and achieving impressive growth during its initial launch. In this article, let’s learn about the unshETH project with HAK Research.
To understand more about unshETH, people can refer to some of the following articles:
- What is Agility (AGI)? Agility Cryptocurrency Overview
- What is Lybra (LBR)? Overview of Lybra Cryptocurrency
What is unshETH
unshETH is an LSDfi project that is shaped to become a financial tool with the purpose of helping increase decentralization for staking validators through incentives, while also increasing income for LSDs holders through providing Product level Options.
What is the Working Mechanism of unshETH
To simplify unshETH’s operating mechanism, we will gradually expand from the project’s focus to the products they will deploy in the future.
unshETH
unshETH is an ERC-20 token that serves as the heart of the entire project as an index representing a basket of many different LSDs tokens currently sfrxETH, rETH, stETH and cbETH. The process of minting and redeeming unshETH is also the process of depositing and withdrawing LSDs from the asset pool.
In addition, unshETH is also an Omnichain token currently available on both chains, Ethereum & BNB, and will soon be available on other EVM chains in the future.
unshETH takes the idea from Curve’s 3pool model – creating an LP of parity assets with deep liquidity to help reduce the cost of exchanging between 2 LSDs tokens, something that currently liquidity pools on AMM still have to do through the intermediary asset ETH.
unshETH emphasizes the term “Real-Yield” when communicating to attract liquidity, indeed, when holding unshETH users can:
- unshETH holders: Real Yield APR = ETH Staking APR + Swap Fee + Mint Fee/Redeem unshETH
- Stake unshETH: Staked unshETH APR = unshETH Real Yield APR + USH Farm APR + LSD Partner Farm APR
- Liquidity Farm: unshETH-USDC APR = unshETH Real Yield APR + unshETH-USDC swap fee APR + Protocol farm APR
In short, users instead of just holding LSDs at ~5% interest with unshETH can enjoy higher yield through providing liquidity to unshETH. As for the unshETH protocol, they can create deep and direct liquidity between LSDs, thereby attracting many users and compatible dapps that generate a lot of fees.
USH
USH is the native token of unshETH, by staking USH you will receive vdUSH in return to directly participate in the protocol governance process. unshETH regularly and periodically organizes voting to be able to:
- Proportion of unshETH asset basket (add/remove LSD, appropriate or maximum ratio between LSDs)
- Vote on the allocation of USH incentives as well as rewards received from other protocols
- Fee curve at AMM and fee switch (fee allocated to USH holder)
vdAMM
This is the first product to exploit unshETH mentioned above with the idea of creating an AMM that optimizes fees and slippage for exchanging 2 LSDs with each other.
Additionally, unshETH vdAMM applies variable fees depending on the standard rate in the unshETH basket.
For example: If the rETH in the basket is lower than the standard level, users who swap their rETH to other LSDs (increasing the rETH in the pool) will receive reduced fees or even free. This also applies to minting/redeeming unshETH
In the future, according to the project development team, there will be more Options (VDO) products developed based on the unshETH pool.
Development Roadmap
Currently, unshETH is available on BNB and Ethereum thanks to Layer Zero technology. In the near future, the project will continue to expand to Polygon and some other L2s.
Core Team
Updating…
Investor
- August 8, 2023: unshETH successfully raised $3.3M in Seed round with the participation of Soma Capital, Iconiq, The LAO, Backend Capital,… and a number of Angel Investors who are former Coinbase and Consensys.
Tokenomics
Overview information about unshETH token
- Token Name: unshETH
- Ticker: USH
- Blockchain: Ethereum
- Token Standard: ERC-20
- Contract: 0xe60779cc1b2c1d0580611c526a8df0e3f870ec48
- Token Type: Utility, Governance
- Total Supply: 143,500,000
- Circulating Supply: 41,054,935
Token Allocation
Use Cases
USH is used to participate in the voting process on new proposals. Besides, Staking USH receives vdUSH to be able to share revenue through the protocol.
Exchanges
You can trade USH at exchanges: Poloniex, Hotbit, Pancakeswap, Sushiswap.
unshETH’s Information Channel
- Website: https://unsheth.xyz/
- Twitter: https://twitter.com/unsheth_xyz
- Discord: https://discord.com/invite/5tZXASh5P3
Summary
Hope this article has partly helped you understand What is unshETH? This is a project that, in my personal opinion, the implementation model is not new, however, the purpose of the project is quite good as it helps reduce the dominance of large Liquid Staking protocols that indirectly increase Decentralization on the Ethereum network. In other words, this will be the protocol that new LSD projects need.