What Is Unifi Protocol DAO (UNFI)?

Unifi Protocol DAO (UNFI) is a decentralized finance (DeFi) approach designed around a decentralized autonomous organization (DAO). The protocol is governed via a governance token, UNIFI. Unifi Protocol DAO aims to bring modern technology to the financial world. The protocol is a group of noncustodial, decentralized, and multichain smart contracts providing opportunities for the next generation of DeFi development. 

The protocol provides developers with functional DeFi blocks linking multiple blockchains together into one larger DeFi marketplace. DeFi is a term used for peer-to-peer financial services on public blockchains, especially Ethereum. In fact, Unifi utilizes the SEED bridge to connect the Ethereum-based DeFi products. SEED is a multichain token generated by Sesameseed’s blockchain node rewards. The features of Unifi Protocol DAO aim to be an incentivized liquidity pool, fee sharing governance token, loyalty reward token, lending platform, and cross-chain swap interoperability. Here, liquidity pool means a pool of tokens that are locked using smart contracts. A cross-chain swap is a process that enables traders to trade tokens across different blockchains without using an exchange service. 

UNFI is the ticker name of the Unifi Protocol DAO. The protocol uses UP token, i.e., Unlimited Potential Token, as the core for Unifi’s DeFi system. According to the UNFI whitepaper, every blockchain seeks to achieve the following functionality where UP token is transacted: 

• Minting – creating new coins to increase supply 

• Burning – to control the total supply 

• Freezing – locking UP tokens to prevent them from transferring or burning

• Voting – ability to vote on whether the UP token needs to be held or frozen

• Proposal Creation – to present a limit of UP tokens to participate in certain governance functions

Unifi Protocol DAO combines blockchain and smart contracts secured under proof-of-stake (PoS) consensus mechanisms. Under the UNFI proof-of-stake ecosystem, users seek to campaign for elections of a Community Council Representative (CR). 

History of Unifi Protocol DAO (UNFI)

Sesameseed developed Unifi Protocol DAO. Sesameseed is a multichain staking community started in April 2018. Juliun Brabon, the CEO; Kerk Wei Yang; the head of smart contract development; and Daniel Blanco, the lead developer, are the core team of the UNFI community.