UMA is a decentralized protocol that allows the creation and trading of synthetic assets on the blockchain, while also operating a cost-optimized oracle named Optimistic Oracle.
The UMA project aims to expand access to the global financial market through smart contracts, allowing users to freely design financial instruments safely and without being limited by centralization.
MAIN CONTENT
UMA operates based on synthetic assets and the Optimistic Oracle system to reduce gas costs.
Outstanding products include Optimistic Oracle, KPI Options, Range Token, Success Token, and Long Short Pair.
The founding team has extensive experience, receives investment from many large funds, and continuously expands cooperation and integration.
What is UMA?
UMA (Universal Market Access) is a protocol for creating and trading synthetic assets, accompanied by optimized decentralized oracles on the blockchain.
Launched in 2018, UMA aims to eliminate barriers to accessing traditional financial markets, allowing everyone to freely create and trade customized financial products through smart contracts, ensuring decentralization and safety.
How does UMA operate?
UMA is based on two main platforms: synthetic assets and the oracle system with the 'truthful assumption' mechanism to ensure effective data validation.
Users create synthetic assets by collateralizing assets. Instead of continuously updating prices, UMA only activates the oracle when there is a price dispute. At that point, the DVM mechanism allows the UMA holders to vote to determine the correct price, enhancing objectivity and saving gas costs.
UMA has built an innovative oracle mechanism that not only minimizes gas fees but also limits forms of attacks through traditional oracles.
Hart Lambur, Co-Founder & CEO UMA, 2023
Outstanding products of UMA
UMA develops many innovative DeFi products, maximizing efficiency and diversity for users.
Optimistic Oracle (OO)
This is the central oracle system of UMA, operating under the 'truthful assumption' model, only activating verification when disputes occur, helping to reduce gas fees and increase response speed.
Data is provided and has a time for objection before acceptance.
UMA token holders vote in the DVM mechanism to resolve disputes.
Applications in event prediction, protocol validation, and airdrop conditions.
KPI Options
Conditional reward token, only unlocked if the project meets specific KPI targets such as TVL or number of users, helping to encourage substantial contributions rather than just receiving airdrops.
Range Token
A non-dilutive fundraising solution for DAOs with tokens that only have value when the project's token price is within a predetermined range, helping to protect investor interests and maintain tokenomics structure.
Success Token
It is a Token that combines the main Token and reward options, supporting startups to raise funds without selling Tokens at low prices, in return, investors gain benefits when the project succeeds.
Long Short Pair (LSP)
Framework for creating synthetic assets in the form of two Long and Short Tokens, trading independently, without requiring continuous collateral, and not subject to liquidation, simplifying the experience for new users.
Products like LSP and KPI Options from UMA provide flexible financial solutions, protect investors, and stimulate sustainable development for the community.
Allison Lu, Co-Founder UMA, 2023
Outstanding features of UMA
UMA stands out with its ability to save oracle costs, high creativity in product design, optimal security, and rapid development speed.
Optimistic Oracle helps reduce gas fees compared to traditional standards.
Allows the creation of diverse financial instruments through smart contracts.
Strict security system, audited by many reputable organizations.
A toolkit that helps develop products in a short time of just a few days.
Overview of UMA Token and Tokenomics
The UMA Token is the primary governance asset of the protocol, used for governance voting and data validation in the DVM mechanism.
Token Standard: ERC-20 (Ethereum), ARC-20 (Avalanche).
Total supply: 125,063,185 UMA; circulating: 87,735,273 UMA.
Allocation: 48.5% for founders and investors; 35% for community & developers; 14.5% for future token sales; 2% for initial listing on Uniswap.
Utilities: Participate in governance voting, price validation, and receive incentive rewards.
UMA development roadmap
UMA focuses on expanding the use case of the Optimistic Oracle and upgrading user experience, while also expanding Layer-2 integration and new oracles.
Q2/2024: Expanding collaboration with DeFi, Prediction Market, DAO.
Q3/2024: New version of KPI Options, improved SDK for developers.
Q4/2024 – Q1/2025: Integration of Layer-2 such as Base, zkSync and development of oracle for NFT, RWA.
Development team, Investors, and Partners
UMA was founded by financial and technology experts, receiving support from many large investment funds, along with a diverse network of partners.
Development team
Hart Lambur (CEO): Graduated from Columbia University, former derivative trader at Goldman Sachs, co-founder of Risk Labs.
Allison Lu: Derivatives finance expert, blockchain experience, former employee at Goldman Sachs.
Other members: Kevin Chan (Engineer, former Google), Colleen Culbertson (Legal Counsel, former SEC).
Operates under the DAO model, with significant contributions from the community and Optimistic Oracle validators.
Investors
Seed stage (6/2020) with support from IOSG Ventures for initial technical foundation.
The funding round of $2.6 million (7/2021) from Blockchain Capital, Amber Group, Wintermute, Mirana Ventures, Will Price, and IOSG Ventures helped expand the ecosystem.
Partners
Across Protocol: Cross-chain bridge utilizing UMA oracle.
Polymarket: Prediction market platform using Optimistic Oracle.
Sherlock: Smart contract insurance protocol integrated with UMA oracle.
Gnosis Chain, Opyn, Synthetix, Perpetual Protocol: Supporting customized product mechanisms from UMA.
Summary
UMA is a pioneering solution in the area of synthetic assets and decentralized oracles, supporting diverse products, reducing costs, increasing security, and creating long-term investment incentives for the DeFi ecosystem.
With the support of many reputable investment funds and an in-depth development team, UMA is actively contributing to expanding access to the global financial market on the blockchain platform.
