The term decentralized finance (DeFi) has become ubiquitous over the last two years, as more and more financial institutions and service providers seek disintermediated pathways to deliver their offerings to the public. Indeed, DeFi is an exciting corner of Web 3.0 that has a bright future ahead. And one up-and-coming project – Uniglo (GLO) is expected to make its contribution toward that future by bringing unique value to the DeFi landscape.
What is the Uniglo (GLO) Vault?
Uniglo is a new DeFi project that is making headlines, catching the attention of analysts and whales. One unique functionality of the Uniglo project is its Community Asset Vault which is designed to incorporate a wide range of assets including rare non-fungible tokens (NFTs), digital currencies, and various digitized assets.
This community vault is designed vis-a-vis the decentralized autonomous organization (DAO) structure of Uniglo to enable fractionalized asset ownership for all GLO token holders. Community members vote on which assets to include in or exclude from (by way of sale) the vault.
Maintaining this vault also requires a careful selection by the Uniglo community to ensure there is a consistent appreciation of the investment portfolio and long-term wealth accumulation for all investors. The impressive asset mix will also help maintain the demand for GLO tokens.
When certain assets are ripe enough, they will be sold to the market. And the profits from that sale will be used to purchase GLO tokens from the secondary market. These tokens will then be burned in a special process called an Ultra-Burn Mechanism, reducing the overall token supply of GLO. As the Uniglo Asset Vault continues to generate profits, more GLO tokens are taken out of circulation. The demand remains but the supply diminishes, providing benefits for loyal token holders.
With Uniglo’s special Vault, the new project could be offering more value to DeFi than ThorChain (RUNE). The latter is a decentralized liquidity protocol that enables permissionless asset swapping for users by serving as a sort of vault manager for layer 1 native assets (such as ). As such, it is similar to Uniglo in a way because it maintains a vault. However, ThorChain’s vault operates differently – it accepts deposits to facilitate secure cross-chain cryptocurrency transactions. In 2019, ThorChain also operated the RUNEVault, which was an interface for staking and earning RUNE.
The Uniglo Vault could also push Uniglo ahead of Neo (NEO) in the DeFi world. Neo is an open-source, decentralized blockchain platform that supports the development of distributed applications. Neo utilizes smart contracts to fully digitize assets and identities and could more simply be understood as a provider of decentralized identity solution standards. Founded in 2014, Neo has been a key player for a long time, but the entrance of Uniglo could push it out of its current position.
The bottom line
As more financial projects introduce blockchain-based innovations, DeFi is becoming a very exciting space for developers and investors. And Uniglo could further bring a unique kind of value to the space.
Learn More Here:
Join Presale: https://presale.uniglo.io/register
Twitter (NYSE:): https://twitter.com/GloFoundation1
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