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This document aims to provide a comprehensive understanding of Unit Network's banking system.

It caters to both users and developers, offering insights into the technical components and inner workings of the system to facilitate informed decision-making and development processes.

Overview: Unit Network Banking System

The Bank Pallet is designed to facilitate the management, redemption, and transfer of tokens among banks, users, and treasuries within a Substrate-based blockchain ecosystem.


This pallet aims to enable:

  • Transferring tokens from users to banks.

  • Transferring tokens from banks to users.

  • Transferring tokens among banks.

  • Transferring tokens from banks to treasuries.

  • Redeeming 'WRAPPED CRYPTO' tokens from stable banks.

Importance of Banking System:

The banking system is pivotal within the Unit Network, serving as its foundation for asset management and transaction execution.

It offers a robust and adaptable framework to handle various assets efficiently and securely.

Diverse Functionality and Solutions:

The banking system encompasses diverse functionalities and storage solutions tailored to manage different asset types effectively.

It provides specialized roles to distinct banks within the network, ensuring optimized performance for specific tasks

Efficient Asset Management:

Unit Network's banking system ensures efficient management of a wide range of asset types, including cryptocurrencies, tokens, and other digital assets.

It facilitates seamless transactions and storage solutions to cater to the needs of both individual users and institutional clients.

Secure Transaction Execution:

Security is paramount within the Unit Network banking system, with robust measures in place to safeguard assets and data during transactions.

Through encryption, authentication protocols, and other security mechanisms, the system ensures the integrity and confidentiality of transactions.

Technical Insights: Asset Transfer in Unit Network

Asset-Bank Association:

Each asset type within the Unit Network is linked to a specific bank identified by its unique token ID.

This association ensures that assets are managed and transferred within the appropriate banking framework.

Primary Extrinsic Functions

The bank pallet exposes five primary extrinsic functions for asset transfer, facilitating seamless transactions within the Unit Network.

User Asset Transfer:

Users can transfer assets to a designated bank, initiating transactions from their wallets to the specified destination bank.

Asset Creator Privileges:

Asset creators hold the privilege to transfer assets from the originating bank to users, enabling the distribution of assets to intended recipients.

Bank-to-Bank and Bank-to-Treasury Transfers:

Banks possess the authority to transfer assets to other banks and treasuries within the Unit Network, facilitating inter-bank transactions and asset management.

Event Signaling:

Each executed transfer triggers an event in the Unit blockchain, serving as a notification of the transaction's outcome.

Successful transfers are recorded as completed events, while failed transfers due to reasons like insufficient balance or lack of permission are indicated as error events, providing transparency and accountability in asset transactions.

Key Highlights: Asset Transfer and Bank Operations

Token Creator Authority:

Token creators hold the authority to transfer assets between users, banks, and treasuries within the Unit Network, facilitating asset management and distribution.

Bank Identification:

Banks within the Unit Network are uniquely identified by their IDs, which mirror the IDs of the tokens they represent, ensuring a clear association between assets and their corresponding banks.

Default Supply Minting:

Upon token creation, a default supply is minted to the respective token's bank, providing an initial allocation of assets for circulation.

The default supply is fixed but adjustable, allowing token creators to tailor the supply to meet specific requirements.

Total Supply Dynamics:

Outgoing transfers from a bank result in an increment in the total circulating supply of the transferred tokens, reflecting the movement of assets within the network.

Token Supply Management:

Token creators retain the capability to increase the total supply of tokens; however, all tokens must remain within the bank.

Modifications to the total supply or token symbol are restricted once tokens have been transferred out of their respective bank, ensuring stability and integrity within the network.

Modification Limitations:

For instance, once a token is transferred out of its bank, the token creator loses the ability to change the total supply or token symbol, enhancing accountability and preventing unauthorized modifications.

Supply Adjustment Mechanism:

Modifications to the default supply of newly created tokens can be accomplished through the assets pallet, providing a streamlined mechanism for supply adjustments and management.

Storage Management:

BankTokens Storage:

Purpose: Monitors the quantity of tokens held within a specified bank.

Access Keys: Utilizes token ID and bank ID to retrieve the balance of a particular token within its corresponding bank.

NextTransactionId Storage:

Purpose: Maintains the identifier for the next transaction to occur within a bank.

Transaction Identification: Initially, the first transaction of a bank is assigned the ID 0, with subsequent transactions incrementing this ID sequentially.

Access Key: Bank ID is utilized to access the next transaction ID.

Bank Transactions Storage:

Purpose: Preserves detailed information regarding transactions within a bank.

Access Keys: Transaction details can be retrieved using the bank ID and transaction ID.

Information Stored: Includes token ID, transaction amount, sender, and receiver details, providing comprehensive insight into the movement of assets within the network.

Diverse Bank Types:

In the Unit Network ecosystem, various bank types serve specialized roles in managing a wide range of assets, including fiat stable tokens, user-generated cryptocurrencies, and wrapped cryptocurrencies. These banks are essential for facilitating transactions, storing assets securely, and maintaining the stability and integrity of managed tokens. Each bank type possesses unique characteristics and operational mechanisms tailored to the specific requirements of the supported asset types.

Fiat Stable Token Banks:

Role: Facilitate the management and exchange of fiat-pegged stable tokens within the network.

Characteristics: Designed to maintain the pegged value of stable tokens to their respective fiat currencies, ensuring stability and reliability in transactions.

User-Generated Cryptocurrency Banks:

Role: Handle the issuance, storage, and transfer of cryptocurrencies created by users within the Unit Network.

Characteristics: Provide flexibility for users to generate and manage their cryptocurrencies, fostering innovation and diversity within the network.

Wrapped Cryptocurrency Banks:

Role: Manage wrapped versions of external cryptocurrencies, enabling their utilization within the Unit Network ecosystem.

Characteristics: Serve as custodians for wrapped cryptocurrencies, ensuring seamless interoperability between external blockchain networks and the Unit Network.

Each bank type plays a crucial role in supporting the functionality and growth of the Unit Network ecosystem, catering to the diverse needs of users and enhancing the overall utility and efficiency of asset management within the network.



Wrapped assets don't have a dedicated bank.

User-created tokens like City and Industry tokens have their own banks.

Stable tokens also have banks, but their operational logic differs from user-created tokens.

Banks only hold tokens of type "WrappedCrypto" and themselves.

The bank receives WrappedCrypto tokens when someone buys a stable token using WrappedCrypto tokens on the Sales page.

It's possible to redeem WrappedCrypto from the Stable Bank by burning stable tokens.

Tokens of type "WrappedCrypto" represent other blockchain tokens within the Unit blockchain, such as BTCU, ETHU, DOTU, NEARU, USDTU, etc.


Banks for stable tokens in the Unit Network operate differently from user-created token banks.

Key features:

  1. Redemption Efficiency:

Users cannot transfer stable tokens from their banks, but redemption at the bank efficiently transfers the redeemed value to the user.

  1. Asset Holding:

Stable token banks can only hold "Wrapped" Assets and the token itself.

  1. Minting and Sales Module Integration:

Stable tokens are minted upon purchase via the Sales module, streamlining the acquisition process for users.

  1. Collateralization Mechanism:

Banks serve as collateralization hubs for stable tokens, with an expectation of over-collateralization over time to ensure robustness and stability.

  1. Price Stability Assurance:

Stable tokens maintain price stability through collateral reserve assets held within their respective banks, reinforcing trade stability on the platform.

  1. Exclusive Collateral Utilization:

Stable tokens exclusively rely on their bank reserves for collateral, enhancing reliability and consistency.

  1. Market Pegging Mechanism:

Each stable token is pegged to its corresponding fiat currency, facilitated by off-chain oracles providing real-time market value updates.

  1. Diversified Risk Management:

Stable token banks maintain a diversified asset portfolio, hedging against potential losses by balancing assets to ensure resilience and stability.

  1. Redemption Requirements:

Users can redeem stable tokens by transferring them to the token's bank, subject to a 10x over-collateralization threshold for bank stability.

  1. Dynamic Supply Management:

The total supply of stable tokens remains variable, with minting upon purchase and burning upon redemption, ensuring alignment with market demands and stability goals.


Elevated Reserve Asset Banks within the Unit Network play a crucial role in managing wrapped cryptocurrencies.

Key features:

  1. Independent Control:

Reserve asset banks for wrapped cryptocurrencies are under exclusive control, ensuring autonomy and integrity in asset management.

  1. Versatile Asset Hosting:

These banks have the capability to host any asset, providing unparalleled flexibility in accommodating diverse asset types.

  1. Gateway for Blue Chip Cryptos:

Reserve asset banks serve as conduits for prestigious blue-chip cryptocurrencies like Bitcoin, Ethereum, and Dot to seamlessly integrate and operate within the Unit Network ecosystem.

These banks act as the foundation for the integration and smooth functioning of blue-chip cryptocurrencies within the Unit Network, offering a secure and adaptable environment for asset management.


User-Created Token Banks play a pivotal role in managing user-generated tokens within the Unit Network.

Key features:

  1. Creator's Control Hub:

Token creators have authoritative control over the bank containing the initial total token supply upon minting.

  1. Comprehensive Transfer Authority:

Empowered by the creator, token banks facilitate transfers to users, other banks, or treasuries, ensuring fluid token circulation.

  1. Versatile Asset Holding:

Token banks exhibit remarkable versatility by accommodating an array of other tokens, amplifying their utility and interconnectivity.

  1. Automated Sale Transactions:

During token sales, banks seamlessly facilitate the transfer of purchased tokens to buyers, alongside the distribution of any associated bonuses.

  1. Dynamic Circulating Supply:

Outgoing transfers from the bank dynamically augment the total circulating supply, reflecting the evolving token ecosystem's dynamics.

  1. Pre-Transfer Supply Modification:

Before any token transfers, the total supply remains adjustable, providing flexibility for modifications as per evolving requirements.

  1. Supply Adjustment Protocols:

To modify the total supply, all tokens must be present within the bank, ensuring integrity and accuracy in supply adjustments.

  1. Fixed Supply Dynamics:

Following the initial token transfer, the total supply becomes immutable unless all tokens are returned to the bank, ensuring stability and predictability in token economics.

Token creators can only change the total supply or the token symbol if none of the tokens inside the bank have been transferred out of it. Once a token is transferred from the bank, the creator loses the ability to change the total supply or token symbol.

These banks serve as the cornerstone of user-created token ecosystems, embodying flexibility, control, and integrity in managing token supplies and facilitating seamless transactions across the Unit Network platform.



The Unit Token Bank is a central component of the Unit ecosystem, playing a crucial role in managing Unit tokens.

Key features:

  1. Reservoir of Unit Tokens:

The Unit token bank stores all un-transferred Unit tokens, ensuring their integrity and availability.

  1. Versatile Asset Custodianship:

While capable of holding any asset, the Unit token bank primarily safeguards the backing collateral for Unit tokens in the Unit treasury, ensuring stability and reliability.

  1. Comprehensive Transfer Authority:

Empowered with inherent functionality, the Unit token bank facilitates seamless transfers of Unit tokens and other assets to users, banks, and treasuries.

  1. Automated Purchase Facilitation:

During Unit token purchases, the bank automatically transfers acquired Unit tokens to buyers and distributes bonuses from sales to designated recipients.

  1. Dynamic Supply Dynamics:

Outgoing transfers from the Unit token bank contribute to an increase in the total supply of Unit tokens, aligning with evolving transactional needs while maintaining a fixed total supply.

  1. Immutable Total Supply:

With a fixed total supply, the Unit token ecosystem ensures that the quantity of Unit tokens in existence never exceeds the predetermined limit, promoting stability and predictability within the network.

The Unit token bank serves as a cornerstone of the Unit ecosystem, embodying reliability, functionality, and integrity in managing Unit tokens and facilitating seamless transactions across the Unit Network platform.