Unit Protocol

Unit Protocol (DUCK) was the utility and governance token of a decentralised finance (DeFi) protocol that allowed users to mint the stablecoin USDP by locking a variety of crypto assets as collateral. The protocol accepted over 160 tokens, including liquidity provider (LP) tokens, making it one of the more flexible systems for collateral-backed stablecoin issuance at the time. DUCK operated on Ethereum, with its smart contract deployed at 0x92e187a03b6cd19cb6af293ba17f2745fd2357d5.

The protocol functioned by allowing users to deposit tokens and mint USDP up to a set collateralisation ratio. If the value of the collateral fell below required thresholds, the position could be liquidated. These mechanisms were intended to ensure the stability of USDP and the security of the system.

DUCK was designed for several roles within the Unit Protocol ecosystem:

• Governance: DUCK holders could vote on protocol changes, such as risk parameters, supported collateral types, and fee structures.
• Staking: Users could stake DUCK to receive rewards, with some sources indicating returns of up to 25% annual percentage yield (APY). This may have supported protocol operations or incentivised token holding.
• Trading and Arbitrage: DUCK was available on various decentralised and centralised exchanges, providing opportunities for price speculation and arbitrage.
• Lending: DUCK could be lent out on certain platforms, allowing users to earn interest.
• Payments and Transfers: As an ERC-20 token, DUCK supported basic use cases like peer-to-peer transfers and payments.

The token’s design aimed to create utility and engagement within the Unit Protocol environment, though its adoption and effectiveness were reliant on the protocol’s long-term viability.