Seamless Protocol Describes Itself As

Seamless Protocol is a decentralized finance (DeFi) platform that provides a decentralized, non-custodial lending and borrowing protocol, facilitating both over- and under-collateralized loans. The platform is governed entirely by the community and operates on a permissionless basis, with no investor public or private sales. It is the first native, decentralized, non-custodial lending and borrowing protocol on the Base network.

Project Utility/Function

Seamless Protocol distinguishes itself in the DeFi space through its unique approach to lending and borrowing. The platform offers traditional over-collateralized borrowing, similar to established DeFi protocols like Compound and Aave, as well as under-collateralized borrowing facilitated by smart contracts. These smart contracts support various borrowing strategies known as Integrated Liquidity Markets (ILMs), allowing users to engage in complex financial strategies such as looping liquid staking token (LST) exposure and magnifying delta-neutral positions.

Integrated Liquidity Markets (ILMs) 

ILMs are a key innovation of Seamless Protocol, enabling peer-to-peer borrowing and lending in a more capital-efficient manner. Unlike traditional platforms where liquidity is provided directly to borrowers, ILMs facilitate liquidity provision to authorized Borrowing Strategy smart contracts. This setup allows for under-collateralized borrowing while maintaining control over the assets from the liquidity supplier's perspective, effectively making it an over-collateralized position for the liquidity suppliers.

In its first month of operation, Seamless Protocol became the largest native liquidity market on the Base network, ranking in the top 20 by Total Value Locked (TVL) according to DefiLlama. Users can supply and borrow assets like USDbC, ETH, and cbETH, with plans to support additional assets in the future.

Seamless Protocol enables a new form of peer-to-peer borrowing and lending through ILMs, which are isolated, smart contract-to-smart contract markets for under-collateralized but permissionless borrowing. Liquidity suppliers earn fees for providing liquidity, while borrowers must lock collateral and pay fees to access the liquidity pools.

Leveraging Proven Smart Contracts 

Seamless Protocol uses battle-tested smart contracts by forking Aave v3 for its over-collateralized lending and borrowing functions and Ampleforth Geyser v2 contracts for its staking farm. These contracts have been audited and proven secure in managing substantial assets and distributing rewards, with the original code preserved to ensure integrity and security.

Seamless integrates multiple functions such as cross-chain bridging and swapping through its partnership with Get All DeFi Liquidity in one API , enabling users to bridge and swap assets onto the Base chain from other chains with a single click. As a launch partner of Coinbase's Subscribe function, Seamless allows users to receive updates directly into their wallets.

Token/Token Utility

The SEAM token is the governance token of Seamless Protocol, granting holders the ability to participate in the governance and decision-making processes of the platform. The token ensures that the protocol remains community-driven and decentralized. Details about the token supply, distribution, and specific governance mechanisms are not provided but are crucial for a comprehensive risk assessment.

About the Founders

The contributors and advisors of Seamless Protocol come from a diverse range of backgrounds across the blockchain industry. They include individuals with experience at Aave, Coinbase, Uniswap, CertiK, Maple Finance, Ampleforth, and GameStop. 

Community and Ecosystem

Seamless Protocol operates as a community-driven initiative, with the Seamless Protocol DAO and associated delegated community members enacting governance proposals from SEAM token holders. The contributors come from various sectors within the DeFi ecosystem, including DeFi blue chips and NFT projects, with a shared mission to enhance the capital efficiency and user experience of DeFi.

Risks of SEAM

Like an investment in other crypto assets, there are some general risks to investing in SEAM. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in SEAM is subject to the following specific risks:

• Seamless Protocol operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with SEAM. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The SEAM community and Seamless Protocol founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of SEAM have no recourse to the SEAM community, Seamless Protocol founding team, or Uphold if SEAM declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing SEAM on the Uphold Platform, Uphold performed due diligence on SEAM and determined that SEAM is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of SEAM, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of SEAM.
• Any marketing materials put forward by the SEAM social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with SEAM, including any code defects, security breaches and other threats concerning SEAM and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with SEAM, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of SEAM.

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 11, 2024.