UniLend

A platform that allows liquidity providers on Uniswap to lend out their positions and rent liquidity positions from others.

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Inspiration

In traditional finance, banks often swap cash flows from their assets for a fixed period of time. They do this because they want to hold onto their assets long-term, but believe their counter-party's assets will outperform their own in the short-term. We decided to port this over to DeFi, specifically Uniswap.

What it does

Our platform allows for the lending and renting of Uniswap v3 liquidity positions. Liquidity providers can lend out their positions for a short amount of time to renters, who are able to collect fees from the position for the duration of the rental. Lenders are able to both hold their positions long term AND receive short term cash flow in the form of a lump sum ETH which is paid upfront by the renter. Our platform handles the listing, selling and transferring of these NFTs, and uses a smart contract to encode the lease agreements.

How we built it

We used solidity and hardhat to develop and deploy the smart contract to the Rinkeby testnet. The frontend was done using web3.js and Angular.

Challenges we ran into

It was very difficult to lower our gas fees. We had to condense our smart contract and optimize our backend code for memory efficiency. Debugging was difficult as well, because EVM Error messages are less than clear. In order to test our code, we had to figure out how to deploy our contracts successfully, as well as how to interface with existing contracts on the network. This proved to be very challenging.

Accomplishments that we're proud of

We are proud that in the end after 16 hours of coding, we created a working application with a functional end-to-end full-stack renting experience. We allow users to connect their MetaMask wallet, list their assets for rent, remove unrented listings, rent assets from others, and collect fees from rented assets. To achieve this, we had to power through many bugs and unclear docs.

What we learned

We learned that Solidity is very hard. No wonder blockchain developers are in high demand.

What's next for UniLend

We hope to use funding from the Uniswap grants to accelerate product development and add more features in the future. These features would allow liquidity providers to swap yields from liquidity positions directly in addition to our current model of liquidity for lump-sums of ETH as well as a bidding system where listings can become auctions and lenders rent their liquidity to the highest bidder. We want to add different variable-yield assets to the renting platform. We also want to further optimize our code and increase security so that we can eventually go live on Ethereum Mainnet. We also want to map NFTs to real-world assets and enable the swapping and lending of those assets on our platform.

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