Overview
What is Unbound?
Unbound is an automated leveraged vault that allows users to amplify their Bitcoin exposure on Starknet. By abstracting away the complexity of “looping” (repeatedly depositing and borrowing), Unbound enables one-click leveraged positions.The Problem
Manually achieving leverage on lending protocols requires:- Deposit collateral (wBTC)
- Borrow stablecoins (USDC)
- Swap USDC → wBTC
- Deposit the new wBTC as more collateral
- Repeat until desired leverage is reached
- Time-consuming: Multiple transactions required.
- Gas-intensive: Each step costs transaction fees.
- Error-prone: Easy to make mistakes during looping.
- Capital-inefficient: Requires waiting between transactions.
The Unbound Solution
Unbound uses flash loans to achieve leverage in a single atomic transaction:How It Benefits Users
| Benefit | Description |
|---|---|
| Simplicity | One transaction instead of many |
| Atomicity | Either everything succeeds or everything reverts |
| Gas Efficiency | Single transaction = lower total fees |
| No Slippage Risk | Flash loan guarantees execution |
Use Cases
1. Bullish on Bitcoin
You believe BTC will go up and want amplified exposure. With Unbound:- Deposit 1 wBTC
- Select 2x leverage
- Now have exposure to 2 wBTC worth of price movement
2. Yield Farming with Leverage
Some protocols offer incentives (like Starknet BTCFi rewards) for borrowing. With leverage:- Amplify your borrowing position
- Earn more rewards relative to your initial deposit
3. Hedged Positions
Combine leveraged long with other strategies to create sophisticated positions.Position Economics
When you open a leveraged position:| Component | Example (2x on 1 wBTC @ $100k) |
|---|---|
| Your Deposit | 1 wBTC ($100,000) |
| Borrowed USDC | $100,000 |
| Total Collateral | ~2 wBTC ($200,000) |
| Total Debt | $100,000 USDC |
| Net Exposure | 2x to BTC price |
When BTC Goes Up 10%
- Collateral Value: 2.2 wBTC = $220,000
- Debt: $100,000
- Equity: $120,000 (+20% gain, 2x amplified)
When BTC Goes Down 10%
- Collateral Value: 1.8 wBTC = $180,000
- Debt: $100,000
- Equity: $80,000 (-20% loss, 2x amplified)
What Unbound Does NOT Do
- ❌ Custody your funds (all assets are in Vesu)
- ❌ Guarantee profits
- ❌ Protect against liquidation
- ❌ Provide insurance