UniLayer, a decentralized trading platform built on top of Uniswap, provides users with professional-trading level tools that you generally only find on centralized exchanges. Recently the platform passed a security audit by Hacken, with no severe or critical issues found. As a result, it seems like the perfect opportunity to learn what UniLayer is and its LAYER tokenomics.
What is UniLayer?
UniLayer is a DeFi app that brings advanced trading features to Uniswap that veteran crypto traders from the centralized space will be familiar with. Such as automated trading, using UniLayer lets you create buy and sell orders for specific token prices. It also features scheduling, which enables traders to queue trades to be executed at a particular time of day. This feature resembles how limit orders for Uniswap work on Dharma.
As we all know the cryptocurrency markets never do sleep. So having access to decentralized automated trading is a big step forward.
Additionally, the UniLayer UI provides dashboards for live charts, order books, and analytics. All features that traders use on a daily basis via platforms such as Binance.
Control Pooled Liquidity
Perhaps one of the more exciting features for Uniswap enthusiasts is automated lending management. UniLayer can automate the process of adding or removing liquidity from a pool once certain metrics are met.
As a result, you have much more control over your pooled liquidity. For example, to protect yourself from massive impermanent loss from volatile assets. You could automate the process of pulling tokens out of the pool at certain price points.
UniLayer’s native token LAYER plays an important role in its ecosystem via Flash Staking. This is a unique reward model that aims to promote the trading activity of a token. Contrary to conventional staking models with flash staking LAYER stakers will receive the full reward instantly.
It works by choosing how much LAYER to stake against an ERC20 token, along with locking up the LAYER tokens for a time period. These two factors will then calculate the stakers instant reward amount. As a result, you will find the value of LAYER will become dependent on the value of the ERC20 tokens available in the staking portal. Furthermore, the use case provides increasing buying pressure as the staking portal gains adoption. Additionally, teams will pay a fee in LAYER to set up their staking portal.
Looking to the future
UniLayer is under active development with a lot of exciting features on its roadmaps such as fiat on-ramps, launchpads, and NFTs. Currently, it looks like a good bet that trading volume on Uniswap will continue to go up. Meaning the demand for tools such as UniLayer will increase massively. However, we have to note that UniLayer will be at whim to Ethereum scaling issues that may slow down the adoption of their tools. For example, if liquidity and users migrate to a Layer 2 solution such as Loopring then UniLayer may no longer have much of a use case. It would be great to hear if the team has plans of integrating other DEXs into their platform because the LAYER flash staking design is very unique.