Unifi Protocol DAO price prediction: unique features could lure users

The UNFI token drives a robust DeFi platform, although price forecasts remain lukewarm for now

2D characters interacting with representation of smart contracts – Photo: Shutterstock                                 
Smart contracts get smarter with Unify’s uBridge system – Photo: Shutterstock
                                

Contents

What is Unifi Protocol DAO (UNFI)?

Unifi Protocol DAO is a decentralised finance (DeFi) ecosystem comprising a decentralised exchange (DEX) and a cross-bridge token-swap protocol. In typical DEX fashion, users earn APY rewards from injecting liquidity into the listed trading pairs. As of 30 May, Unifi Protocol DAO had $12m in total value locked across 461 trading pairs.

As a decentralised autonomous organisation, Unifi Protocol DAO allows holders of the native UNFI token to partake in referendums if they stake UNFI tokens. Proposals often deal with staking parameters, transaction validation procedures, and deployment of treasury funds.

The team consists of California-based chief executive officer Juliun Brabon, Singapore-based smart contract developer Kerk Wei Yang, and Madrid-based lead developer Daniel Blanco.

Despite being one of many DeFi platforms out there, Unifi Protocol DAO has some sophisticated features uncommon among the competition.

How is Unifi Protocol DAO different?

With a seemingly endless array of DeFi protocol and liquidity pools to choose from, the big question is: what is Unifi Protocol DAO (UNFI)’s unique selling point? 

One of Unifi’s key features is the cross-chain uBridge’s protocol's unique approach to multi-chain bridging. Liquid smart contracts are deployed on the majority of Ethereum Virtual Machine-compatible blockchains, including Harmony, BNB Chain, IoTeX and Avalanche. Rather than receiving wrapped tokens as is common, a cross-chain transaction automatically rebalances the liquidity held in the uBridge smart contracts (eg swapping UNFi from Avalanche to Polygon reduces supply from the former and adds supply to the latter). This method means that UNFI’s circulating volume goes unchanged.

Screenshot showing amount of liquidity held across Unifi Protocol DAO’s bridges – Source: unifiprotocol.com
Unifi Protocol DAO’s Ethereum bridge holds the largest UNFI supply – Source: unifiprotocol.com

Unifi supplies liquidity to the cross-chain contracts. While this is convenient, gas fees must still be paid by the user. Cross-chain bridges also become the target of hackers because of the vast amounts of cryptocurrency held in the accounts.

Unifi Protocol DAO has a unique approach to yield farming that does not require staking. Instead, farming rewards are automatically generated when providing DEX liquidity, thus reducing the hassle of LP tokens and additional gas fees. Note that UNFI yield farming is only in its beta stage for now.

Unifi Protocol DAO was among the first DeFi projects to incorporate its own network of consensus nodes under a delegated proof of stake (DPoS) system. There are currently 5,972 delegates staking almost $8.8m to five nodes.

UNFI: Key token details

As 30 May 2022 14:30 BST (+1 UST), UNFI was trading at a value of $3.10 with a market capitalisation of $13.29m. This figure represents a 40.41% day-on-day rise. Concurrently, trading volumes were abnormally high: the latest 24-hour volume of $98.44 million was more than eight times market capitalisation and more than seven times up against the day. No catalyst was immediately clear.

UNFI has a total supply of 10 million and a circulating supply of just under 4.3 million. The majority (51%) of UNFI is held in the liquidity provider pool. Vesting periods are in place until Q2 2025. Team tokens comprise 15% of supply, while 18.5% of supply was distributed in private and seed sales. The remainder is reserved for strategic partnerships and public mining allocation.

Breakdown of UNFI’s token distribution and vesting periods – Source: unifiprotocol.com
UNFI will be fully diluted in Q2 2025 – Source: unifiprotocol.com

UNFI is supported by numerous top exchanges, including Coinbase, Binance and Gate.io.

Unifi Protocol DAO price prediction 2022, 2025

TechNewsLeader’s UNFI coin price prediction expects a short-term downturn to $2.77 in 2022. Other digital forecasters are more optimistic: Digitalcoin’s Unifi Protocol DAO price prediction for 2022 is $4.04 while CoinArbitrageBot’s current target is $9.65.

Digitalcoin’s overall sentiment is cautious. Out of the 26 technical indicators used to make a Unifi Protocol DAO price prediction, nine point to a sell strategy, nine point to a buy strategy, and eight remain neutral.

Unifi Protocol DAO price prediction 2025, 2030

TechNewsLeader’s UNFI crypto price prediction is $11.63, while its Unifi Protocol DAO price prediction stands at $54.41 for 2025 and 2030 respectively.

Digitalcoin’s Unifi Protocol DAO price prediction for 2025 is $5.77, heading up to $13.86 in 2030.

In a far more bullish opinion, CoinArbitrageBot’s 2025 Unifi Protocol DAO price prediction is $45.

Unifi Protocol DAO price prediction: summary

Putting the UNFI price prediction coverage across three forecasters together gives us a 2022 target of $5.48 and a 2025 target of $20.80. Reaching these price points would generate respective returns of 76% and 570% for today’s buyers.

The median Unifi Protocol DAO price prediction for 2030 shared by two digital forecasters is $29.43, or 849% up on the latest UNFI exchange price.

All in all, the UNFI price targets are a mixed bag. Furthermore, uncertainty about the long-term viability of the DeFi market could impact the platform’s prospects. On the plus side, Unifi Protocol DAO has some unique features among its competitors than could make it stand out from the crowd.

Readers should be aware that these forecasters use an automated process to make price predictions. They do not take into account certain fundamental factors and market volatility. Potential investors should seek independent, third-party advice, coupled with extensive due diligence checks, before placing an investment.

FAQs

UNFI has a total supply of 10 million and a circulating supply of 4,285,405.

That all comes down to the long-term potential of Unifi Protocol DAO as a DeFi platform. As an investor, make sure to do your own research into the platform’s fundamentals and technical documentation before deciding on an investment.

The digital forecasters expect modest returns in the short and long term. UNFI could just as easily go down in value given market volatility and wider interest in the DeFi market. Always invest wisely and never with more than you can afford to lose.

Currency.com is not in the business of giving financial advice. The information presented in this article is intended as a neutral resource. Make sure to assess the fundamentals of the product, as well as getting independent financial advice, before putting your money down on an investment. 

Further reading

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