UniLayer Next Generation Decentralised Trading Platform
UniLayer is a next generation decentralised trading platform built on top of Uniswap that enables key features for professional-level trading with it’s LAYER utility token, focusing on automated swaps and liquidity management, flash staking, charts and analytics, live order books, and a lot more.
On top of these features, the LAYER token is used to facilitate transactions on UniLayer where all transaction fees are transferred to a token pool. 92% of fees will be distributed to stakers of the platform in addition to liquidity providers to the ETH/LAYER liquidity pool, with the remaining 8% going to the foundation as a reserve.
UniLayer is a new DeFi app that brings advanced trading features to Ethereum; features that trading veterans have come to expect from the traditional (or centralised) space. This piece will cover in detail:
• How UniLayer builds upon Uniswap to offer streamlined token swaps and access to liquidity pools, that offers both secure and reliable infrastructure.
• The automation toolset of UniLayer that allow scheduled and automated trades that interact directly with Uniswap’s token pairs.
• The real-time UX of live order books, charts and analytics the platform offers that are designed to match industry leading solutions.
- How flash staking has been integrated into UniLayer to provide users instant rewards for staking UniLayer LAYER token against ERC20 tokens. With flash staking, users lock LAYER tokens for a set time-period, thus reducing supply, and are instantly rewarded a percentage of the locked token value in ERC20 token being staked against. This model is designed to appreciate the token price over time and reward stakers in the process.
- More about the LAYER token with its utility to reward stakers and liquidity providers of ETH/LAYER acts as a reserve fund for the UniLayer foundation, and as a reward mechanism for stakers and liquidity providers.
Flash staking is a particularly exciting idea that is still in its infancy. This piece will explain the process of staking tokens for instant rewards after covering Unilayer’s trading features.
How UniLayer Builds on top of Uniswap
UniLayer introduces much-needed trade automation tools and new token economics on top of the fundamental building blocks of Uniswap and its on-chain infrastructure.
Uniswap’s foundation has enabled these tools to be built directly into UniLayer, that run alongside Unilayer’s advanced feature set:
UniLayer takes advantage of what Ethereum’s Uniswap protocol has made possible with on-chain token swaps and decentralised liquidity pools.
Concretely, UniLayer provides a comprehensive set of tools designed for serious traders to use on top of the DeFi ecosystem to facilitate a range of must-have trading tools. Unilayer’s web app provides a streamlined interface that connects to Uniswap APIs to securely and reliably trade and move assets.
Why UniLayer Builds Upon Uniswap
Building UniLayer on top of Uniswap makes a lot of sense, for a few reasons. Before delving into the features of UniLayer, let’s firstly comment on how the Uniswap ecosystem strengthens Unilayer’s offering — and will continue to do so over time as adoption grows.
Third Party Support for Uniswap is Growing Rapidly
The Agent Wallet, Switcheo Exchange and Streamr Marketplace are just 3 of many apps that have already integrated Uniswap directly into their products.
The SDK is regularly maintained with its source code fully transparent and accessible via GitHub. This makes it possible for developers to publicly audit the code for security vulnerabilities and poor coding practices, as well as raise concerns via GitHub Issues where they feel improvements can be made, and even contribute to those improvements.
Not only this, Dapps (Decentralised Applications based on smart contracts) are also able to communicate with Uniswap directly from their corresponding smart contracts that live on-chain. This 2-pronged approach covers access to Uniswap from both centralised and decentralised apps.
Because of this accessibility Uniswap is gaining rapid adoption with no signs of slowing down. The more liquid Uniswap markets are, the more capable UniLayer will become as a go-to trading solution.
At the time of writing, Uniswap have $132.6 million of value locked in liquidity pools, with that figure growing on a weekly basis. Their Info Dashboard provides real-time stats on liquidity and volume, and all metrics are currently spiking.
Uniswap V2 Has Been Audited by ConsenSys
As the heading suggests, Uniswap is now on V2 having bought features such as price oracle capability, flash swapping, and more intelligent routing to token swaps. These new features — along with all the improvements that came with this major release — have been audited by Consensys Diligence, a subsidiary of ConsenSys, who are major contributors to Ethereum’s ecosystem.
The audit carried out by Consensys Diligence is publicly available on GitHub, that effectively risk assesses Uniswap, and verifies Uniswap’s smart contracts are secure, resilient and working according to their specifications. Simply put, this audit validated Unilayer’s decision to build its features on top of Uniswap, with the guarantees that the protocol is secure and that due-diligence has been exercised.
As a result, risk of bugs and successful attacks aimed at UniLayer have been minimised. UniLayer is secure and reliable, and built upon verified code.
Uniswap is Decentralised
And importantly, Uniswap is fully executed on-chain with no reliance on centralised services or single-point-of-failure systems. UniLayer view this requirement as paramount for any worthwhile contribution to the DeFi space — user’s want services to be trustless and not controlled by one person or special interest group. UniLayer is based on 100% decentralised technology that the Ethereum blockchain makes possible.
This section highlights the main offerings of UniLayer and how they build upon the foundations of Uniswap that we explored above.
Automated Trading Done Right
Automated trading is expensive to do on-chain due to gas fees, so trades must all be managed in an intelligent dashboard specifically designed to carry out such trades. UniLayer monitors on-chain state for liquidity, token values and exchange rates, and initiates real-time feeds to the dashboard where automated trading can then take place. There are a number of powerful features that become possible with automated trading- let’s cover a few of them.
Executing buy and sell orders at specific token prices
Being able to execute trades when a token price reaches a certain value is a critical part of any trader’s strategy, whether aiming to enter the market after a dip in token value, or building upon holdings when a token reaches a particular value, automated trades are critical to do such things sufficiently at the right time.
Although Uniswap offers the mechanisms to swap tokens, it is not possible to queue orders based on token prices. Instead, the user must manually execute trades using the Uniswap exchange interface or a supported third-party service that supports the protocol. With the UniLayer dashboard, users can now target specific price movement to initiate a trade and have confidence they’ll be executed automatically.
Scheduling Buys and Sells
Automated Lending Management
UniLayer also provides a streamlined UI that builds upon Uniswap’s liquidity tools in the form of lending liquidity, enabling automation of adding and removing liquidity into a pool once key metrics are met.
For example, if you are trading a volatile asset and you wish to limit your exposure by removing your liquidity at a certain price point, UniLayer can automatically execute a transaction to pull your tokens out of the pool. UniLayer supports both time-based and value-based breakpoints that will trigger these removals.
UniLayer will make your lending rewards transparent from the dashboard. Liquidity commission is managed by Uniswap, with a current shared commission rate per trade made being 0.3%. Your share of that 0.3% is calculated based on the share of the token pool your tokens have. E.g. if you have 10 tokens out of a total of 1000 in a particular pool, then you will receive 1% of that 0.3% rate on every trade made.
In Uniswap V2, a “protocol charge” of 0.05% was introduced, but is currently turned off. A governance mechanism is in place for managing decisions about switching the feature on. If this charge mechanism was turned on, then the commission rate will be decreased to 0.25%, and therefore decrease the amount you can earn.
If the protocol charge is ever turned on, it will be reflected within the UniLayer UI so the user is aware of their reward ratio. Essentially, the greater pool share you accumulate, the more commission you will receive per trade. The automated lending management that UniLayer offers will accelerate this token value accumulation by intelligently adding and removing tokens based on market price and other factors as the platform evolves.
Live Charts and Analytics
We have become accustomed to tools such as Cryptowatch for providing great UX for keeping up to date with crypto markets in the form of detailed, interactive price charts. UniLayer is aiming to implement similar feeds that are embedded directly in your dashboard environment to coincide with your trades and lending setup. UniLayer will have price charts integrated directly into the Dashboard akin to what traders expect from professional solutions. Buy and sell order data, liquidity volume, the ratios of add and remove orders for each liquidity pair, and much more will be fed directly into charts and analytics, designed with speed and reliability in mind. UX has been a secondary concern in crypto currency since its inception, with the primary focuses being on foundational blockchain improvements, such as scalability and security. With major leaps forward with Ethereum 2.0 and beyond happening in the short term, now is a great time to focus more on UX to make industry standard trading possible — UniLayer aims to do exactly this.
UniLayer wants to level the playing field with UX and bring professional level chart and analytics tools directly into your dashboard.
Live Order Books
UniLayer will have a live order book that will make it possible to see token trading activity in real time. UniLayer order books allow users to preview all the buys and sells that are happening with each token pair supported on the platform.
Live order books are something that we’ve come to take for granted on centralised services such as Binance, where they are operated and managed by the platform itself. Order books are typically tied into selfmanaged infrastructure, that represent a single-point-of-failure risk in the event of a security breech. UniLayer is designed to avoid such a scenario from the off, and aims to pioneer an order book feed with decentralised first data sources.
Unilayer’s features will continue to evolve as the platform develops with a focus on bringing professional-standard tooling to the decentralised ecosystem.
Flash Staking with LAYER Token
Flash staking is a new reward model designed to promote trading activity of a token, increase the token value over time, and to reward stakers in the process.
Stakers are rewarded the full reward amount instantly upon staking — a stark contrast to conventional staking models that reward users over time to secure a blockchain network.
With UniLayer Flash Staking you get rewarded instantly and run no risk of getting penalised, unlike conventional staking models based on validating a network that apply strict penalties as soon as you go offline.
Theoretically, everyone wins with UniLayer staking. UniLayer are pioneering this model with an LAYER token to facilitate the staking process. Staking rewards are minted as soon as you stake your tokens. The general model of Unilayer’s staking model is represented with the following flowchart:
A user can choose how much LAYER to stake against a particular ERC20 token, as well as choose a time period for the LAYER to be locked up. These two factors determine your instant reward amount.
This model is designed to reward all parties holding LAYER and the ERC20 token being staked. Let’s break down the reward mechanisms in detail:
• In order to stake, the user must firstly buy some LAYER token from Uniswap or another exchange. This in turn promotes liquidity of the token and gives the holders of the token real value.
• The value of LAYER is dependent on the value of ERC20 tokens being staked against. If a low performing ERC20 token decreases in price over time, then the value of LAYER will in turn decrease. Remember that LAYER is minted based on a reward percentage of the ERC20 token value initially — a decrease in this initial valuation will have a negative effect on the overall LAYER value.
• On the other hand, staking against successful tokens that appreciate in price over time will have a positive effect of LAYER value — this is very likely to happen during uptrends and bull markets.
• The user is instantly rewarded for locking up their LAYER with the reward value that is minted in the ERC20 token being staked against and immediately transferred to the stakers wallet.
• As more users see the benefits of UniLayer staking, the demand of LAYER will increase which could lead to the value of LAYER increasing too. Your LAYER could be leveraged in a Uniswap liquidity pool for additional commission.
Flash staking is a highly effective mechanism for promoting ERC20 tokens and the LAYER token concurrently. The model demonstrates a thorough understanding of tokenomics by incentivising and rewarding both the buyer and seller concurrently.
Setting up a Staking Portal for Your Token
If you are a token start-up, flash staking can give your token value and adoption a kick-start. UniLayer will allow you to open a Staking Portal where you can set up your own staking terms, including:
• The total amount of ERC20 token you are willing to distribute as staking rewards.
• The minimum and maximum amount of LAYER to be staked per wallet address.
- Your own reward ratio as a percentage. If you wished to give users back 5% of the LAYER value they stake, then that value will be transferred as your ERC20 token as soon as tokens are staked.
Staking Portal Fees
There will be a small fee in order to open a Staking portal. Users can pay this initiation fee in two ways:
1. With their ERC20 token in question, where the fee will be deducted from the initial transaction.
2. 50% discount: with LAYER token held in your wallet. Note that you enjoy a 50% discount on stake portal fees when paid with
LAYER token. LAYER will be available to trade on Uniswap with the ETH/ LAYER pair initially. Offering staking rewards with UniLayer will promote the liquidity and overall interest of your token, with little risk on the token owners’ part. The token owner can weigh up a viable reward pool and configure their staking portal to coincide with their growth strategy.
The Risks of Flash Staking
Now, there are some downsides of locking up tokens for a period of time! You may miss the opportunity to sell your LAYER tokens in the event there is an upswing in the price.
It also has to be mentioned that you will receive a penalty if you withdraw your staked LAYER prematurely, as the instant reward was based on the belief that you are staking your LAYER for the full time period.
If you withdraw your tokens half way through your duration, then you will likely lose 50% of your staking reward value, deducted from your staked LAYER.
UniLayer Staking is Coming Soon
UniLayer staking is a pioneering feature new to the Cryptocurrency space, and more information will become available as development of the feature progresses. Staking will be managed through the UniLayer dashboard where users will be able to manage their positions and view when they can withdraw funds.
UniLayerStatus: Active Development
UniLayer is currently in active development with the team currently working towards implementing the features discussed in this piece.
Upon its initial release, UniLayer will give traders the opportunity to work directly with Uniswap in an automated manner with professional trading features that are essential for executing a competitive trading strategy.
UniLayer makes it possible to automatically react to market movements to leverage uptrends and protect your funds from downtrends. It also combines industry leading protocols with a staking model that rewards users with LAYER token, while promoting the underlying ERC20 tokens in Staking Portals.
All your exposure is on-chain in a trustless decentralised system, making your tokens secure and tamper-proof.
Also, let us know what you think! We believe in the spirit of open source collaboration — the whole decentralised movement of public blockchains are founded upon an open, welcoming collaborative environment. UniLayer wants to play a part of the evolving decentralised ecosystem, and feedback is extremely welcomed.