UNION Protocol Governance Token (UNN)

The UNION Protocol Governance Token (UNN) is an integral part of the UNION Finance ecosystem, which offers decentralized finance (DeFi) protection for all users. It operates as a non-KYC peer-to-peer permissionless protection marketplace, empowering individuals to mitigate risks in active DeFi strategies. Through UNION, users can purchase protection against downside risks and event risks or provide liquidity to earn premiums. An advanced protocol ensures the secure management of multi-layer risks across smart contracts and protocols within a scalable system.

UNION aims to optimize collateral through its Collateral Optimization (C-OP) strategy. By purchasing DeFi Protection when borrowing against crypto assets, users can unlock a significant portion of their collateral and avoid liquidation events. Additionally, individuals can add liquidity to the insurance protocol, receiving high premiums from those buying DeFi Protection. If a claim is made due to a drop in price or a voted event risk, the liquidity provided will be used to fulfill the claim. If no claims are made, the capital remains intact, and the liquidity providers receive the premiums.

The UNION Protocol Governance Token (UNN) serves as the governance token for the UNION Protocol. With a fixed total supply of 1 billion, UNN enables token holders to engage in governance-related activities. These include voting on protection claims, conflict resolution, adjusting risk parameters, and modifying incentive programs. The token model of UNION utilizes a multi-tier structure with clear separation of functions. Apart from UNN, other tokens include uUNN for protection policy buyers, pUNN for protection policy writers, and rUNN, a rewards token for staking and claiming UNN rewards.