What is Unwind
Unwind handles both sides of a leveraged tokenised asset position in one product: winding (opening the position) and unwinding (exiting it). Deposit the base asset, choose target leverage, and the system builds the position on the lending market in one click, even when the underlying asset settles asynchronously. Exit by locking the position; the market’s provider settles the redemption, and debt repayment and collateral release happen atomically.
Why it exists
Leveraged tokenised asset strategies are well understood: supply the asset as collateral, borrow the base asset, buy more of the asset, repeat. For asynchronous assets both ends of that loop break down. Entry takes days per iteration while borrowed capital accrues interest, and exit requires someone to front the base asset during the redemption gap. The workarounds (manual looping, thin AMM liquidity, OTC credit lines) each fail in their own way.
Unwind replaces them with protocol-enforced overcollateralisation: the position sits directly on the lending market under the user’s own account, and every exit request is isolated in its own escrow and tracked by a Receipt NFT until the provider fulfils it.
How it compares
- Manual looping
- Each leverage iteration waits for settlement while interest accrues, and exit means coordinating redemption by hand. Unwind enters in one click and exits atomically.
- AMM liquidity
- Selling tokenised assets into thin pools produces severe slippage; the cost of capital for LPs on low-volume tokenised asset pairs keeps liquidity thin. Unwind redeems at the asset’s own settlement value instead.
- OTC agreements
- The only practical option for both sides, but bilateral: counterparties pull credit lines in stressed markets. Unwind replaces the bilateral trust with on-chain overcollateralisation enforced by the protocol.
The essentials
- One-click entry. The system manages the asynchronous settlement phase; no manual loops, no waiting between iterations.
- Direct ownership. Collateral and debt sit in the user’s own lending market account, not behind a vault or strategy layer.
- Structured exit. Exits settle through the tokenised asset’s own redemption cycle at a fixed on-chain fee, with the position locked and escrowed for the wait; the architecture admits additional provider types per market.
- Permissioned assets. Some markets list permissioned tokenised assets, which add issuer whitelisting before winding; see how it works.
- Compliance built in. Winding and liquidation bidding are gated explicitly by Keyring credentials where the market requires it; unwinding is gated implicitly, since the lending market credential-checks the operations the request performs.