🪙Acting as a UNIT LP
Interested in depositing Rocket Pool ETH (rETH) and minting the Flat Money (UNIT)? Here’s everything you need to know.
Last updated
Interested in depositing Rocket Pool ETH (rETH) and minting the Flat Money (UNIT)? Here’s everything you need to know.
Last updated
While many protocols allow you to deposit crypto assets and mint stablecoins as long as you maintain an overcollateralized position, you end up paying a variable annual percentage yield (APY) to mint and borrow stablecoins, while your stablecoins are devalued over time by inflation.
Flat Money (UNIT) isn’t pegged to 1 USD. UNIT is a low-volatility yield-bearing flatcoin that's value floats around the price of rETH in USD terms and steadily grows in value, as UNIT holders earn trading fees, liquidation fees, and redeeming fees, as well as earning positive Borrow Rate fees. As a UNIT LP, you are still earning rETH’s staking yield, while taking a delta-neutral position. The rETH liquidity in the Flat Money Market allows leverage traders to take the other side and pay you a Borrow Rate when demand for leverage is high.
You pay no interest to mint and hold UNIT. Instead, you earn fees from the Perpetual Futures Market and UNIT redeeming fees, as outlined below. Through these fees and rETH’s native staking yield, UNIT grows in USD value over time to counter inflation and dampen ETH’s volatility.
While people seek stablecoin yields within DeFi, UNIT provides an alternative where you can mint and hold UNIT; earn built-in yield without taking on additional smart contract risk; and choose a capital efficient, censorship resistant flatcoin to store and grow your USD value over time.
To mint Flat Money (UNIT), you need to go to the UNIT page in the Flat Money dApp and connect your crypto wallet. Head to the Mint/Redeem section, where you will see a screen that allows you to select the amount of rETH you want to deposit into the Flat Money protocol.
Once you have entered the amount of rETH you want to deposit, you will see an estimated amount of UNIT that will be minted if you select the Trade button below. You can select the gear wheel in the top right of this window to change your slippage tolerance and the token approval amount, as well.
While you confirm the amounts you entered and your slippage preferences, you can see the estimated keeper fee. The keeper fee is dependent on Base’s gas prices, which you can review on L2scan.
When you are ready to deposit rETH, you can select Trade to mint your UNIT flatcoins. After the transaction is complete, you will see the UNIT flatcoins in your wallet. If you’re using a crypto wallet that requires you to add new tokens manually, you can enter the following information to add UNIT to your wallet:
UNIT contract address: 0xb95fB324b8A2fAF8ec4f76e3dF46C718402736e2
Token symbol: UNIT
Token decimal: 18
The rETH you deposit will be held in Flat Money’s shared liquidity pool, which holds the rETH that backs UNIT and provides liquidity to allow any UNIT LP to redeem their UNIT for its underlying rETH.
As outlined above, UNIT LPs don’t need to provide liquidity on decentralized exchanges because the rETH held within the Flat Money protocol allows flatcoin holders to redeem their UNIT for its underlying rETH at any time.
If you want to redeem your UNIT for rETH, you need to go to the UNIT page in the Flat Money dApp and connect your crypto wallet. Head to the Mint/Redeem section, where you will see a screen that allows you to select the amount of UNIT you want to redeem for rETH.
Once you have entered the amount of UNIT you want to redeem, you will see an estimated amount of rETH that will be withdrawn if you select the Trade button below. You can select the gear wheel in the top right of this window to change your slippage tolerance and the token approval amount, as well.
When you redeem your UNIT, you will pay a one-time withdrawal fee of 0.25% in additional to the standard keeper fee, which is estimated in the UI. The keeper fee is dependent on Base’s gas prices, which you can review on L2scan.
When you are ready to withdraw your rETH, you can select Trade to redeem your UNIT for its rETH backing. After the transaction is complete, you will see the rETH in your wallet.
