Unit Protocol is a decentralized borrowing platform that utilizes the Collateralized Debt Position (CDP) model. This model allows Unit Protocol's users to mint its native stablecoin USDP from a wide variety of crypto assets.
Many crypto holders own a diversified portfolio of assets, including a variety of capitalized and under-capitalized tokens. Popular crypto assets are easily sold and borrowed, allowing for instant access to liquidity.
However, less liquid assets are difficult to sell quickly, yet they represent a significant measure of value in the crypto asset world. Until now there has been no way to borrow liquidity for such assets, limiting their utility in DeFi applications, funding, and usability.