The native token of the Unit Protocol is called $COL. $COL is an ERC-20 token that is used as collateral for borrowing stablecoins. Users can lock up their $COL tokens as collateral and borrow stablecoins such as $USDP.$USDP is a stablecoin that is pegged to the US dollar. It is designed to maintain a 1:1 ratio with the US dollar, providing stability and predictability for users. Users can borrow $USDP by locking up their $COL tokens as collateral, and they can repay the loan at any time to unlock their collateral.
The Unit Protocol also features a liquidation mechanism to ensure the stability of the system. If the value of the collateral falls below a certain threshold, the system will automatically liquidate the collateral to repay the loan and protect the stability of the protocol.
Overall, Unit Protocol provides users with a decentralized borrowing solution that allows them to access liquidity while maintaining ownership of their assets. By using $COL as collateral, users can borrow stablecoins and benefit from the stability and predictability of $USDP.
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