Uniswap is currently the number one Dex in the DeFi market and continuously releases updates along with new, market-leading technologies. But Uniswap’s product is still not perfect. And in this article, I will introduce the Bunni project, a product that optimizes the liquidity of users’ Farm positions.
To understand more about Bunni, you can read the following articles:
- What is OLM? Pros and Cons of OLM in DeFi
- What is Bond Protocol? Bond Protocol Cryptocurrency Overview
- What is TapiocaDAO? TapiocaDAO Cryptocurrency Overview
What is Bunni?
Bunni is a product of Timeless Finance, Timeless Finance has 2 products: Timeless and Bunni. Although Bunni was built later, it is Timeless Finance’s most effective product at the present time.
Bunni is a Yield Boosting liquidity protocol for Uniswap V3 that supports position management and optimization for LPs but does not adjust liquidity to the same trading price as Arrakis Finance’s service.
Bunni has two parts: a protocol that wraps Uniswap liquidity positions into fungible ERC-20 tokens, and a vetokenomics system to incentivize Bunni liquidity.
- Uniswap wrapper: Although Uniswap LPs are minted as NFTs, it is not mandatory. So Bunni built a wrapper contract that represents Uniswap positions as ERC-20 tokens, which saves Gas and increases composability for assets.
- Vetonomics system: Bunni used LIT (Timeless Finance’s governance token) to encourage liquidity. Bunni has improved upon Balancer’s veToken V2 technology and reward call option (same OLM).
The combination of a strong incentive system and centralized liquidity puts Bunni on track to become the most effective method to incentivize DEX liquidity.
oLIT is a call option token for LIT that allows its holders to purchase LIT at a discount compared to the market price. Unlike regular options, oLIT does not expire. In addition, oLIT differs from TapiocaDAO’s DSO in providing a common fixed discount to suppliers at the same time.
veLIT is the protocol governance token, obtained by locking Balancer’s LP 80LIT-20WETH token. The longer you lock up, the more veLITs you receive, and your veLIT balance decreases over time.
Bunni currently charges a 5% protocol fee on swap fees generated by Bunni LP. It is also the main revenue of the protocol. Administration reserves the right to increase protocol fees from 5% up to 50%.
Development Roadmap
Update…
CoreTeam
Update…
Investors
This section has been updated in great detail in the article “What is Timeless Finance? Overview of Electronic Currency Timeless Finance”, you can refer to here.
Tokenomics
General information about LIT Token
- Token Name: Timeless
- Ticker: LIT
- Blockchain: Ethereum
- Standard: ERC-20
- Contract: 0xfd0205066521550d7d7ab19da8f72bb004b4c341
- Maximum supply: 1,000,000,000
Token Allocation
- Community-72%: This Token portion is reserved for the community, of which: 45% is distributed to encourage liquidity, 11% is held in the protocol treasury, 10% is sold through LBP, 5% is distributed distributed to veMPH holders and 1% airdrop.
- Team-25%: This token is awarded to Team.
- Investors-3%: This allocation is intended for early investors.
Token Use Case
The LIT token is used to manage the Bunni protocol indirectly through veLIT locked with LP of 80LIT/20WETH.
Exchanges
LIT tokens are traded on Dex Balancer V2 and Uniswap V3 exchanges.
Bunni’s Information Channel
- Website: https://bunni.pro/
- Twitter: https://twitter.com/timeless_fi
- Blog:
Summary
Bunni is a very innovative product that uses oLIT as rewards, veToken V2 model and uses Wrap Token ERC-20 to represent the user’s liquidity position on Uniswap V3, making it easy for users to manage position and be more optimized.
So I have clarified what Bunni is? Hope this article provides you with a lot of useful information!