# What is Unlockd?

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Unlockd is the only permissionless RWA liquidity protocol powered by advanced AI where users can participate as depositors or borrowers.&#x20;

It facilitates the safest, most secure, and cost-effective way to borrow against **tokenized Real-World Assets and financial assets** with instant loans, as well as risk-free, auto-compounding yield directly in USDC for lenders.

It is, at its core, a set of smart contracts deployed to the Ethereum Mainnet (and soon to multiple L2s), where LPs (lenders) deposit their assets in pools to receive yield in exchange for their liquidity contribution.&#x20;

This is a **Peer-To-Pool** model, more efficient and fair than other Peer-To-Peer models. Borrowers take permissionless loans with no fixed expiration date, instantaneously, with a fair interest rate, and against their tokenized assets — if they are supported.&#x20;

Our advanced AI ensures the best loan conditions (asset valuation and smart Loan-To-Value), tailored to your needs, without the complexity.

## Everything you need to know, in a nutshell.

#### **Permissionless, Instant Loans Against RWAs**

* **Efficient Yield Generation**: Lenders contribute liquidity to pools, receiving yields in return. This Peer-to-Pool system is more efficient than traditional Peer-to-Peer models.
* **Accessible Platform**: Unlockd's permissionless nature eliminates complex verification, welcoming a broad user base.
* **Rapid Loan Processing**: Borrowers receive instant loans against eligible RWAs, with plans for future cross-chain functionality.
* **Fair Interest Rates**: The platform ensures reasonable rates, without fixed loan expiration dates.

#### **AI-Driven Appraisals and Real-Time Risk Assessment**

* **Accurate RWA Valuation**: Partnering with leading appraisal firms, Unlockd uses AI and machine learning for individual asset assessments, avoiding reliance on floor prices.
* **Adaptive LTV Rates**: Dynamic LTV adjustments are made in response to real-time market data, benefiting both borrowers and lenders.

#### **Full Custody & Ownership Retention with Unlockd Account**

* **True Custody Feature**: Borrowers maintain full custody and ownership rights of their collateralized assets through their Unlockd Account. This ensures that users remain the custodians of their assets, with Unlockd only intervening to prevent unauthorized transactions during active collateral periods.
* **Compliance and KYC Adherence**: By retaining custody of their assets through their Unlockd Account, users ensure compliance with KYC regulations and other requirements from asset issuers. This setup makes ownership and accountability transparent and verifiable, facilitating regulatory adherence and proof of ownership and  reducing risks.&#x20;

#### **Robust and Secure Ecosystem**

* **Proven Security Standards**: Audited by multiple auditing firms, Unlockd's protocol avoids common vulnerabilities of other lending platforms.
* **Comprehensive Risk Framework**: A specialized framework evaluates asset and liquidity risks, providing tailored LTV for individual assets.

#### **Innovative Platform Features**

* **Multi-Asset Collateral**: Unique bundling of various assets into one loan enhances borrowing capacity and diversifies risk.
* **Unlockd Marketplace**: Offers flexibility in asset transactions, allowing listings across all aggregated marketplaces, instant selling and auctions with attached debt.
* **Customizable Notifications**: Integration with hashmail enables users to stay informed about their investments and protocol updates.

#### **Future Prospects**

* **Community-Driven Governance**: Transitioning towards decentralized governance, Unlockd is supported by a robust community and prominent investors.
* **Planned Developments**: Introduction of transaction fees to benefit token holders and expand the DAO treasury, along with ongoing decentralization efforts.


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