UwU

Lending

UwU is a decentralized money market protocol that lets anyone lend and borrow crypto assets. Its code is forked from Aave V2 and Radiant Capital.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
UwU is a new money market protocol on Ethereum with a revenue-sharing token that distributes half of all platform revenue directly back to its users and token holders.
What we like less
Governance concerns as the protocol's founer is Michael Patryn (Sifu), who co-founded the failed Canadian crypto exchange QuadrigaCX. Further, the protocol has no governance system and uses questionable assets as collateral.
What it means for you
UwU offers you higher lending yields that are incentivized by token emissions, as well as allows you to earn a portion of all revenue generated on the platform.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $48.9M (Rank #91)
  • TVL Ranking by Lending: #19
  • Blockchain: Ethereum
  • Chain TVL
    • Ethereum: $48.93M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • No governance token and/or contracts are fully immutable
Protocol Design
  • Protocol is susceptible to death spirals
  • Basic controls to prevent oracle price manipulation
  • Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
  • Basic controls in place to prevent risky borrowing
  • Basic mechanisms in place to incentivize liquidations
  • Basic method to accrue protocol reserves
Things to know about UwU

How UwU works

UwU consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. UwU borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on UwU are driven by market supply and demand. To facilitate this activity, Geist issues uTokens to lenders that reflect accruing interest on the underlying token. UWU is a revenue-sharing token with no governance powers. The platform distributes 100% of all platform fees directly to UWU-ETH LP stakers. All rewards are vested for 28 days after which they can claim 100% of the rewards. Users also have the option to exit earlier (at any time) for a 50% penalty which is then distributed back to full-time stakers.

How UwU makes money

UwU's treasury holds up to 20% of the supply of the UwU-ETH LP token. This means the protocol can earn up to 20% of protocol revenue. UwU tokens that are sent to the LP due to early claim penalties are included as revenue. The treasury will use these tokens to accumulates its LP position until its reaches the supply cap at 20%. Any UWU tokens earned in excess will be burned, which effectively reduces the revenue share the treasury receives as well as the token supply. UwU plans to use its LP revenue and liquidation fees to protect the protocol against bad debt and cover operational expenses.

How you make money on UwU

You can generate yield by staking UWU-ETH LP tokens on the platform to earn 100% of all lending fees. You can earn lending fees on UwU by depositing your idle crypto assets to be used by borrowers looking for leverage. UwU offers additional protocol incentives in its own token to bootstrap demand.

UwU Pools
UwU USD Lending
20%
Yield
$5M
TVL
Risk
F
Protocol
UwU
Chain
Ethereum
UwU USD Lending
19.4%
Yield
$4M
TVL
Risk
F
Protocol
UwU
Chain
Ethereum
UwU USD Lending
55%
Yield
$69K
TVL
Risk
F
Protocol
UwU
Chain
Ethereum