Opportunity Cost

The Elephant in the Room

Beyond the extreme risks involved with DeFi, individuals must stake or park their tokens in a contract to earn a yield. There is a massive opportunity cost associated with this as participants could be using their locked tokens to earn a yield some other way but are unable to seize that opportunity while the tokens are locked.

Lets look at how Unagi addresses opportunity cost.

Unagi are awarded automatically and do not require any transaction to be executed by the holder in order to earn fees. This allows Unagi to be used in any other smart contract in addition to earning yield from the transaction fees.

To facilitate this, the Unagi smart contract exposes some new methods that allow other smart contracts to easily determine the fees earned by each address for any period of time even when funds are pooled together. This is a huge leap in DeFi that enables the direct staking of Unagi Token and double yield generation.

For example, you could lend your Unagi on a third party app and earn a yield from that while still earning fees from Unagi transfers. The lending contract could use Unagi’s new methods to easily determine the fees earned on the amount you provided during your interaction with the lending contract.

By reducing friction and eliminating the burden of contract interaction to earn a yield, Unagi is truly a step forward in DeFi.