UniMex is a Uniswap based DeFi (decentralized finance) protocol which facilitates the margin trading of native Uniswap tokens. Currently, there is no direct way to short or long these tokens despite the hundreds of millions of dollars of aggregated daily trading volumes that those projects attract and the $2 billion liquidity pooled in the protocol as of the time of writing. UniMex plans to solve this problem.
HOW IT WORKS ?
Lending
In UniMex, a central factory smart contract deploys lending pool contracts. That is, smart contracts which permit the lending of specific ERC20 tokens so that margin traders can borrow them for leveraged trading. Naturally, upon deployment of UniMex, there will be a default ETH lending pool created. This is necessary for the creation of a complete ETH denominated margin trading platform, since ETH must be lent for leveraged longs.
UniMex only permits the creation of lending pools for tokens that are trading within an ERC20-ETH Uniswap pair. Lending pools cannot be created for tokens which are only trading within ERC20-ERC20 pairs on Uniswap.
In UniMex, a lender creates a lending pool automatically by calling a function on the UniMex factory which checks that the ERC20-ETH pair is trading on Uniswap, by querying Uniswap’s factory, while also ensuring that the lender seeds a sufficient amount of ERC20 tokens to the aforementioned pool.
Unimex