GroupFi

Concentrated Liquidity in Community Venues

While AMM is a great invention, its mechanism present many problems that prevent the full value of tokens to be realized by their communities:

• In a TVL driven token market, new tokens face low liquidity meaning high slippage or price impact

• Sniper bots and MEV bots extract economic benefits that could have been reinvested back into communities

• User engagement is absorbed by Uniswap because start up projects have limited bandwidth develop their own token marketplace, thus challenging for projects to retain users

The goal of GroupFi is simple, to help projects convert financial network effects of token issuance into product network effects. Without reliance on TVL intensity, projects configure gated PVP order books that are embedded into their community venues. The benefit is that there is no requirement for providing huge liquidity upfront and worrying about sniper bots or MEV, because every trading activity happens within groupchat members.

The Unyfy protocol helps projects to achieve GroupFi by offering tools to build a community centric trading venue, where a token’s liquidity and defi ecosystem resides within community groupchats. Configured and operated by projects.

In terms of degree of openess to traders upon launch, GroupFi sits between the spectrum of IDO and hype launch. Imagine an invite only poker table, you trade against people in the groupchat, you know who you trade against and once they leave they cannot trade.

As the project becomes more mature, the community may prefer to supply LP on Uniswap for broader liquidity or the project may pursue listing on CEXes such as Binance, we do not prevent projects from doing this. In fact, social arbitrage between venues is healthy for the project's long term, the emphasis is that the most important portion of liquidity stays in project community venue so their users can always access the best price.

The Unyfy protocol helps projects to achieve groupfi by offering tools to build a community centric trading venue, where a token’s liquidity and defi ecosystem resides within community groupchats. Configured and operated by projects.