UMA (UMA) was launched on HotsCoin on January 22. UMA (Universal Market Access) is an Ethereum-based protocol designed to enable open, transparent and permissionless financial derivatives trading through smart contracts. The main feature of UMA is the optimistic oracle, which allows arbitrary data to be obtained on the chain and protects the market using economic guarantees. This report will explore UMA’s basic information, token information, key events, how optimistic oracles operate, use cases, and UMA’s role in the derivatives market. UMA is currently open for trading on HotsCoin.
Basic Information
Introduction to UMA
UMA is an Ethereum protocol designed for anyone to access and create tokenized financial derivatives through a self-executing protocol. UMA’s goal is to expand the scope of tradable assets so that they are no longer limited to traditional financial markets, but to achieve a more transparent and open financial system through blockchain technology.
Token information
Circulation: 76,326,094.319 UMA
Total supply: 117,729,680.067 UMA
Circulation market value: $399,643,889.389
Fully diluted market cap: $616,433,313.64
key events
2021-07-10
UMA completed US$2.6 million in financing, showing investors' recognition of its potential.
2018-12-11
UMA completed a $4 million seed round of financing, providing initial support for its development.
Optimistic Oracle is online
UMA's optimistic oracle is online, providing a solution for obtaining any data on the chain and playing a key role in derivatives trading.
How optimistic oracles work
The optimistic oracle is a core component of the UMA protocol and operates to serve three participants on the chain:
Requester and contract requesting price: Make a request for data and specify a dispute period.
Proposer: Provides a deposit and proposes a price within the specified dispute period, others may choose not to object.
Disputant: Participants who disagree with the proposed price can file a dispute and pay a deposit equal to the proposer's deposit.
On the optimistic path, requesters can obtain accurate data quickly in most cases, and the process involves little or no use of natural gas, making it less expensive. In an unfortunate path, disputants can dispute the proposed price, which in turn introduces UMA's Data Verification Mechanism (DVM).
Use cases for optimistic oracles
Key performance indicator options
An example implemented with an optimistic oracle is UMA’s KPI option, which pays out synthetic tokens based on specific metrics. Such financial derivatives do not require actual data on the chain and can be completed through UMA's optimistic oracle query.
Insurance
Optimistic oracles solve the challenges faced by DeFi insurance contracts, making it possible to create insurance contracts for any measurable event or transaction without worrying about data source issues.
Options and structured products
UMA's optimistic oracles provide solutions for call/put options and more complex structured products. Its high accuracy provides more assurance for the execution of these financial instruments.
Complex calculations
Some complex DeFi contracts need to perform calculations off-chain and use optimistic oracles for on-chain verification to reduce gas fees. This model is similar to the idea of TrueBit.
financial contract for anything
UMA’s vision is to enable DeFi developers to build financial contracts for anything. Optimistic oracles are a key component in realizing this vision, supporting the construction of priceless contract infrastructure.
What’s next?
Optimistic Oracles are already in production, and UMA plans to announce additional integrations, partnerships, and improvements in the coming months. UMA's vision is to build a permissionless, transparent and open financial system to provide more innovation and opportunities for the global financial market.
What is UMA?
UMA stands for Universal Market Access and enables cryptocurrency derivatives through a protocol on Ethereum. UMA’s openness and transparency have made it a leader in the decentralized financial market, driving the development of blockchain derivatives trading together with projects such as Synthetix.
What are financial derivatives?
Financial derivatives are contracts that can be bought and sold that set terms for the future price of a specific asset indicator. By tokenizing derivatives, UMA makes this financial instrument more open and accessible, while solving some problems of the traditional derivatives market. UMA’s permissionless and transparent nature makes it an agent of change in global financial markets.
in conclusion
UMA’s smart contract functionality through its optimistic oracles provides DeFi developers with powerful tools to create a wider range of financial derivatives. UMA's vision is to change the face of the financial market through blockchain technology and provide the world with a more open, transparent and innovative financial system. In the future, we can expect UMA to continue to play an important role in the DeFi field and promote the development of financial markets.