/biz/ - Business & Finance

It looks like someone from Compound is buying a lot of UNN
https://etherscan.io/address/0x09e0e4f2a3a7c5f88cdb3c4e7f8a5e8341e19560
This wallet has been sent coins from the compound team wallet in the past. Maybe there is a partnership in the works? It would make a lot of sense if Compound, a lending platform, uses Union's Collateral Optimization(C-OP) and Collateralized Debt Obligations products (CDO), as this would lead to less overcollateralization.

Collateral Optimization (C-OP) protects your collateral. When prices gap up, C-OP is triggered. This gives you more borrowing power. When prices gap down, C-OP is triggered. This reduces your risk of liquidation. C-OP has non-linear cost savings to liquidations: the bigger the gap down in asset price, the more the C-OP saves the borrower

Collateralized Debt Obligations (CDOs) are a complex structured finance product that is backed by a pool of loans and other assets and sold to institutional investors. A CDO is a particular type of derivative because, as its name implies, its value is derived from another underlying asset. These assets become the collateral if the loan defaults.

>Collateralized debt obligations will greatly increase the lending capacity of the maturing DeFi space and create opportunities for purchasers to earn active yield.