UNION to Bring Collateral Optimization, Security to Avalanche

  • Avalanche has partnered with UNION, a multi-token liquid secondary market.
  • UNION is set to introduce collateral optimization instruments and bundled insurance coverage to Avalanche.
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DeFi platform Avalanche has announced a partnership with UNION, a multi-token liquid secondary market, to improve the capital efficiency and safety of its products.

In a blog post published on 27 January, Avalanche said UNION will bring cross-chain DeFi protection to the platform by deploying collateral optimization instruments and bundled insurance coverage.

UNION will be working on lowering the collateral requirements for lending protocols on Avalanche by using an American option-style primitive. Aside from improving capital efficiency, this model will also increase account resilience to liquidations, and add to the borrowing capacity.

The company’s bundled insurance will also be integrated with Avalanche, enabling diverse protection at a lower cost. UNION will leverage the Avalanche-Ethereum Bridge (AEB) to port protection tokens across Layer-1 blockchain protocols.

John Liu, the CPO of UNION, said Avalanche’s breadth both in DeFi participants and solutions makes it an ideal partner for UNION to grow with.

“They are building a ‘bundled’ interoperable Defi platform that pairs perfectly with UNION’s bundled protection and we look forward to unlocking capital efficiency for their growing network of lenders,” he said in the company’s announcement.

The UNION team has already begun the integration process and plans to extensively test its products on the Avalanche testnet. The company anticipates it will be able to launch on the Avalanche mainnet in Q2 2020.

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