Continuing the series about LSDFi, today you and I will learn about a quite interesting project called U Protocol. According to their own definition, U Protocol is a combination of Lybra Finance and Synthetix. So let’s find out what this story really is in this article.
To better understand U Protocol, people can learn more in some of the articles below:
- What is LSDfi? The First Puzzle Pieces & Potential In The LSDfi Array
- Overview and Liquidity Flow in LSDfi
- What is Lybra (LBR)? Overview of Lybra Cryptocurrency
U Protocol Overview
What is U Protocol?
U Protocol is an infrastructure Defi protocol for creating stable assets across multiple chains and improving capital efficiency for crypto assets.
First, to understand the project’s operating model, let’s clarify what the Omnichain concept is? Omnichain, also known as Omnichain Fungible Token (OFT), is a Layer Zero solution that helps projects release their tokens to another chain in the most native way, not the wrapped token version like today.
U Protocol is a Layer-zero OFT application project to create different assets on different chains. Their first two products are U and uBTC. In there:
- U is a stable coin, issued multi-chain, with a value ranging from 1$-1.1$ backed by wstETH (this is another format of stETH, issued by Lido and used in DeFi)
- uBTC has value tied to BTC, is issued multi-chain and is also backed by wstETH.
According to the project these are just the first two products, in the future protocols and users can issue synthetic assets from their own assets using the protocol’s infrastructure. For example, anyone can create arbSOL, a synthetic asset of SOL backed by ARB.
In addition, the project is also aiming to issue real world assets (Real Word Asset) or assets backed by different collateral such as LSD, veToken (Governance Token), Index (e.g. Arbitrove’s ALP example)
Development Roadmap of U Protocol Project
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Core Team
The project does not announce a specific identity. Just announced that the project was created by the Nitro Cartel team. This is the creative team of the Arbitrove project
Investors
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Tokenomics
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Exchanges
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Project Information Channel
- Twitter: https://twitter.com/u_protocol
- Discord: https://t.co/Gg3NRoGxTZ
- Medium:
Summary
Layer-zero’s Omnichain is a name mentioned quite a lot in the market along with Chainlink’s CCIP, which will help projects issue tokens on multiple chains in the most *real* way. The fact that U Protocol is a leading project, pioneering in applying Omnichain opens up many opportunities as well as challenges for the project.
