FAQ

About Universe Finance

1. What is Universe Finance？

Universe Finance is an active liquidity management platform of Uniswap V3 based on risk ranking and quantitative strategies. Our mission is to maximise our users’ Uniswap V3 return. Universe Finance has provided a series of products and some proactive liquidity management tools to meet challenges such as increased risk, expensive gas fees, the timing and frequency of rebalancing and reinvestment. Universe Finance strives to be one of the best decentralised DeFi platforms. Welcome aboard our spaceship: https://www.universe.finance/

2. Why did we decide to start Universe Finance?

We realised the launch of Uniswap V3 offers us a great opportunity. Uniswap V3 boosts LP’s trading fees while increasing the risks of impermanent loss. LPs are focusing on higher yields at lower risks. Our rich experiences in developing quantitative strategies did help us enter this area smoothly to maximise LPs’ returns.

3. Can you introduce your team?

There are ten members on our Dev team. Most of them have rich experiences in developing quantitative strategies. Others are veterans of blockchain, smart contracts and front-end developers. Some of them have already made achievements in other protocols.

And our marketing team has around ten members, mainly focusing on social media management, community operation, and Business Development.

(1) Our Community Foreman: Thespis Philip

Twitter: @ReidyPhillip

Discord: Thespis#3982

Telegram: @singerofdithyrambs

Email: phillip.reidy@universe.finance

(2) Our marketing leader: Coke

Twitter: @maskthedegen

Discord: Coke#0496

Telegram: @ulticoke

Email: coke.defi@universe.finance

Our team is still in rapid expansion. We currently are looking for talented people to join our core team. Check it here.

4. The main focus of Universe Finance

We are focusing on IDOs, $UNT listing, community growth, and ads in terms of marketing.

We are working on leverage vault and hedge vault in terms of development. Stay tuned, and new products are coming soon.

5. Can you introduce your partners? Who do you plan to team up with in the future?

Universe Finance has already established its ecological partnership with Uniswap. You can find us in Uniswap’s Ecosystem: https://uniswap.org/ecosystem.

Apart from this, we have teamed up with Polygon, Instadapp, OlympusDAO, Poolz, DODO, Spartan Protocol, Tetu and MEXC, etc. Also, we recently are actively engaged with different projects such as MoonLight.

We are looking for building solid collaboration with more protocols. And we are also looking forward to managing other protocols’ Uniswap V3 liquidity through our professional LP management.

6. What’s the difference between Universe Finance and other Uni-V3 LP management programs?

There are three main differences:

(1) Universe’s yields remain high and stable for a long time.

(2) Universe only charges 5%-10% performance fees (only when our strategies profits). There is no redemption fee, management fee, and other fees.

(3) Universe offers more products to meet different needs. In addition to our LP management vaults, we also have a hedge vault (under development) and leverage vault (under development). And we have already developed a private smart vault for high-net-worth and institutional users. The private vault is a highly secure version of the smart vault, protecting users’ funds through various security mechanisms.

Besides, we also have some analytic tools such as our backtesting platform and LP analytics. Welcome to give it a shot:

Backtesting： https://www.universe.finance/backtest

LP Analytics：https://www.universe.finance/analytics

7. Roadmap of 2022

Add soon

$UNT Token

1. Have we $UNT launched?

Yes! Now our Universe Fianance Token $UNT is available on three different mainnets - Ethereum (ETH), Polygon (Matic), Binance Smart Contract (BSC). Here are the $UNT contract addresses on these mainnets:

  • Ethereum (ETH): 0xe4b5936Dce1820f84509C89CcE0F28C87988Bad8

  • Binance Smart Contract (BSC): 0xC06A4b3C954E7339ed71885C0EA4928B73bE1944

  • Polygon (MATIC)：0xc46DB78Be28B5F2461097ed9e3Fcc92E9FF8676d

Learn more details about $UNT, see [$UNT - Governance Token].

2. Is there any public sale for $UNT?

The public sale for $UNT was finished and closed. In February of 2022, we carried out the IDO events on Cooper Platform, DODO and Poolz. Check the following links and know the history of $UNT IDO:

If you participated in DODO and Poolz whitelist events and purchased $UNT on these platforms but found trouble claiming $UNT, please join our discord here and send a DM to any of our Mods. They will be there and help you with your difficulty.

3. I participated in $UNT IDO. But why can’t I claim all the $UNT I brought?

There would be a linear release period if you purchased $UNT on DODO or Poolz.

(1) $UNT IDO on Poolz:

🔹 Initial airdrop percentage: 50%

🔹 Linear Release Period: 180 days $UNT

(2) IDO on DODO

🐥 Initial claim percentage: 50%

🐥 Linear Release Period: 180 days

4. Where can I purchase or sell $UNT Token?

(1) Polygon Section

(2) BSC Section

(3) ETH Section

  • Uniswap: https://app.uniswap.org/#/swap?chain=mainnet

(4) CEX

  • MEXC: https://mexc.com/exchange/UNT_USDT

Note: When you trade the $UNT token or receive any information about the $UNT token, please check the token contract addresses first for verification. Beware of being deceived and scammed.

Liquidity Mining

1. Why are we mainly based on V3 instead of V2? What is the difference between Uniswap V3 and V2?

The most significant difference between Uniswap V3 and V2 is the price range of liquidity that users provide. In Uniswap v2, liquidity is distributed evenly along the price curve, with assets reserved for all prices between zero and infinity.

By contrast, in Uniswap V3, the trading fees are no longer distributed evenly. Uniswap V3 introduces concentrated liquidity, allowing individual liquidity providers to gather the higher trading fees in a specific price range. At the same time, the multiple fee tires provide users with flexible choices for taking on varying degrees of risk.

In other words, on the one hand, users can choose to add liquidity to a specific price range and earn different returns. On the other hand, the tighter the price range is, the more trading fees users can gain; also, the risk can be more significant. When it is out of range, LPs would not be able to receive any fees. At the same time, rebalancing the price range requires an expensive gas fee and LPs have to deal with larger impermanent losses than Uniswap V2. Universe has a brilliant quantitative analysis team as a professional active liquidity management platform. After numerous backtesting tests, we have created strategies for different market conditions to help users manage Uniswap V3 liquidity. Our goal is higher returns and lower risks.

Learn more about Uniswap V3: https://uniswap.org/blog/uniswap-v3.

2. Can you further explain the ways of harvesting higher yields with lower risks?

(1) Rebalance intelligently

We rebalance our vaults intelligently. Uniswap V3’s concentrated liquidity boosted returns while amplifying the risks of impermanent loss. When market price moves outside LP’s specified price range, their liquidity is effectively removed from the pool and unable to earn trading fees. Also, they will suffer from impermanent loss. LPs need to continuously update their price ranges to cover the current market price. That’s called “rebalance”. But LPs will also suffer the loss of net value after the rebalances. In short, the timing and parameters of rebalances are complicated quantitative problems.

To find the optimal parameters of rebalances, Universe Finance built a multi-factors quantitative financial model based on the underlying principles of Uniswap V3. After numerous times of backtesting and optimising tests, we have filtered out the ineffective indicators and signals and eventually come up with a comparatively stable rate of return.

(2) Reinvestment & auto-compound

We also help LPs reinvest to maintain high yields. Like yield aggregators, we regularly harvest the gained trading fees and reinvest them to auto compound for our users.

(3) Saving gas fees

Universe Finance covers all the gas fees of rebalance and reinvestment. Continuous rebalances and reinvestments will definitely cost users a lot of gas fees. If LPs do it all by themselves, their trading fees may not cover the expensive gas fees.

Learn more details: https://medium.com/@universe.finance/when-we-talk-about-high-yields-what-exactly-are-we-talking-about-5b5904c0148c.

3. Does single-asset vaults have an impermanent loss?

Just like dual-asset vaults, single-asset vaults may also face impermanent loss. However, it’s calculated through a different method.

Learn more details: https://medium.com/@universe.finance/the-introduction-of-single-asset-vaults-e270612057fc.

4. Why would I deposit on Universe Finance instead of directly providing liquidity on Uniswap V3?

Reasons to deposit on an active liquidity management platform instead of depositing on Uniswap V3 directly:

  1. Uniswap won’t automatically compound your interests; Universe does.

  2. Uniswap won’t help you adjust your price range; Universe does (You won’t get any trading fees if your liquidity stays outside the current price range).

  3. Uniswap won’t cover your rebalance gas fees; Universe does. (You need to pay expensive gas fees when adjusting your price range. Universe will cover all the gas fees of each movement)

Learn more about Universe Finance: https://universefinance.gitbook.io/docs/.

5. Why do some vaults have unbelievable APRs?

The secrets of high returns:

  1. We specifically choose and launch Uniswap V3 vaults with large transaction volume.

  2. Universe’s active liquidity management can further boost users’ returns

6. Does the APR represent the authentic returns?

The vaults’ APRs stand for the returns of trading fees gathered from Uniswap V3 pools. It’s not equal to actual returns because real returns may be affected by impermanent losses. Apart from this, under the extreme market, when the price change dramatically (increase or drop rapidly), the pool probably would be out of range and needs to be rebalanced. It could cause impermanent losses as well. Usually, based on the market signals we capture, we would set a wider price range to a low-trading-volume trading pair to keep the pool in the range. In this case, a wider range can help reduce impermanent losses to some extent.

Private Vault

1. Is it true that only the users in the white list are eligible to participate in the Universe Private Vault? What about Early Bird Vault?

The Private Vault is a highly secure version of the smart vault specially designed and developed by Universe for high-net-worth individuals and institutions. If you are a user with more than a $2M fund or a qualified or KOL institution, you submit your application to Universe Finance without any charge. To better secure our users' funds, our private vault is currently only available for those on the white list.

However, our Early Bird Vault is open for every user. We have taken the same safety method to safeguard these two vaults, except the early bird vault is not subject to the white list. If you would like to read more information about it, please click here to see the Universe's safety mechanism file (coming soon). In terms of earning, both share the same strategies. At the same time, we must realize any investment could involve a specific risk. Users should fully evaluate risk capability before deciding on an investment.

2. Who is Eligible To Our Private Vault?

  • High-net-worth institutional users

  • KOL, owned media, and leader of a community

  • High-net-worth individuals with over $2M funds

3. What do the Eligible Users Need When Submitting An Application?

(1) Institutional users

  • Certificate of institutional qualification

  • Sign a cooperation agreement

  • Stake at least 20K UNTs

  • Deploy a private vault contract: The user can independently deploy the contract or deploy it with the assist of Universe Finance.

(2) KOL users

  • KOL influence data

  • Sign a cooperation agreement

  • Stake at least 20K UNTs

  • Deploy a private vault contract: The user can independently deploy the contract or deploy it with the assist of Universe Finance.

(3) High-net-worth individuals

  • Funding certification

  • Sign a cooperation agreement

  • Stake at least 20K UNTs

  • Deploy a private vault contract: The user can independently deploy the contract or deploy it with the assist of Universe Finance.

Airdrop

1. Is there any Airdrop for Early Users in Universe Finance?

Yes, there is! We will undoubtedly airdrop those early users and contributors. Additionally, we will also carry out an Incentive Plan for Our Early Users lasting for four weeks. By that time, users can claim the airdrop from us.

2. When can I receive my airdropped $UNT?

If you participated in the airdrop mining before the 27th of February at 24:00 UTC, to save gas fees for our spacemen, we have distributed the $UNT rewards to users’ ETH addresses (Polygon users will receive the airdrops in your ETH addresses as well) based on the $UNT snapshots.

Transaction Details for distributing the airdrops: https://etherscan.io/tx/0x770a6f73389b30ddb5d60b9227659998676c4627c56abf2a892aa6f342958a61.

If you have not received your $UNT airdrop, join our discord community and send a DM to our Mods. We may ask you to provide your wallet address and help you with the issue.

3. How can I put my $UNT into use and make it profitable?

Check here to see how can you make your $UNT profitable.

We are currently exploring more$UNT use cases by building partnerships with more projects. The new pools Spartan Protocol and Tetu perform very well:

BSC Section - Spartan Protocol - https://dapp.spartanprotocol.org/home

Polygon Section - Tetu - https://app.tetu.io

Smart Quantitative Strategies

Are all strategies available on-chain? Or are they operating privately through the smart contract?

We will create the rebalanced signals out of the chain. If a rebalanced signal appears, we will use the rebalance function of the contract.

Safety

As more and more attacks happen to DeFi protocols in the past few years, how does Universe Finance keep our users’ funding safe?

(1) Audited by many blockchain audit firms

Universe Finance guarantees the security of the contracts through the audit of their security protocols by foremost experts in the blockchain field such as Certik and Peckshield. We will continue to engage with other blockchain audit firms in the future to provide high-level security protection to our users.

(2) Externally Owned Account ("EOA") mechanism

All addresses in the private vault can only be accessed through EOA and not through the Contract Accounts. Because hackers can only launch lightning attacks through Contract Accounts, the EOA mechanism isolates the Contract Accounts and root out the conduit for lightning attacks.

(3) Unrenewable smart quantitative strategies

Smart quantitative strategies cannot be upgraded, which means Universe Team cannot interfere with users' funds through renewing strategies.

(4) Bug Bounty Plan

We think highly of the security of our protocol. We have carried out a bug bounty plan to reward the users who help improve our security.

Learn more details here: https://universefinance.gitbook.io/docs/development/bug-bounty

We have been collecting information regarding these attacks. By analysing them, we are learning how to prevent our protocol from being attacked by the same mechanism, further enhancing the security of Universe V2.

Click to view our analysis on DeFi attacks: https://medium.com/@universe.finance/how-do-we-enhance-the-security-of-universe-v2-a9f88c51cb48.

Although no one can guarantee 100% safety in the DeFi world, we will always try our best to maintain the highest level of security and keep sharp to prevent attacks.

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