Hello to my friends who love life and keep smiling despite all negativity. In this article, I will talk about "Universal Market Access (UMA)", which makes 4X in a week and you will hear its name a lot in the future. Let's start…
Let's get to know Universal Market Access (UMA) ...
Universal Market Access (UMA) is an open source infrastructure for distributing and implementing synthetic assets in Ethereum. UMA allows developers to quickly and easily create synthetic tokens that keep track of the price of anything.
What are synthetic tokens? Are collateral-backed tokens whose value fluctuates depending on the reference index of the tokens. Synthetic tokens blend the features of forecast markets, futures markets and collateralized loans.
Sample;
- Synthetic real world assets (Gold, Equity owned by a firm)
- Synthetic cross-chain crypto assets
- Tracking tokens for various indices that cannot be traded
What UMA?
UMA enables developers to create synthetic assets through two core components:
Priceless financial contract templates
“Priceless” financial contracts are those that do not require on-chain price feed to operate and minimize the use of oracles on-chain to reduce the frequency and surface area of ??oracle attacks. It is designed with mechanisms to encourage counterparties to properly collateralize their positions without requiring any in-chain price feed.
These mechanisms include a liquidation and dispute process that allows counterparties to be rewarded for identifying improperly secured positions. Unless a position is liquidated, it is assumed to be solvent (properly collateralized). Oracle is used only when a purge is challenged - which is rarely conceived.
Optimistic oracle service
Many use cases for blockchains and smart contracts require unreliable access to off-chain information. Decentralized financial contracts, for example, require accurate price data for valuation, margin setting and settlement.
The mechanism used to report off-chain information to a blockchain or smart contract is typically referred to as an oracle. Despite a great deal of current research into Oracle system design, one key feature is missing in current approaches: an economical guarantee around the cost of breaking an oracle system.
Economic guarantees around the cost of disrupting blockchain oracles are critical to the development of smart contracts, especially useful in decentralized finance (DeFi) applications. UMA's Data Verification Mechanism (DVM) oracle structures guarantee a smart contract and economic security of the oracle system in a completely decentralized and unauthorized blockchain environment.
Together, these two components enable fast, efficient and secure synthetic derivatives to be created on the Ethereum blockchain.
UMA creates an open source infrastructure for "priceless" financial contracts in Ethereum. Specifically, these are two things:
- Invaluable financial contract templates that can be used to create synthetic tokens
- Data Verification Mechanism (DVM), an optimistic oracle service
Together, these two technologies enable fast, efficient and secure synthetic derivatives to be created on the Ethereum blockchain.
UMA is focused on creating "priceless" derivatives in Ethereum. These financial contracts are designed to provide appropriate collateral by counterparties without using an in-chain price feed. They can do this by providing rewards to counterparties or third parties for identifying improperly secured positions. To verify that these positions are improperly secured, these contracts may be based on a Data Verification Mechanism (DVM).
DVM is an optimistic oracle service available to respond to price requests made by financial contracts registered to it. These price requests ask UMA token holders to vote on the value of a price identifier in a historical timestamp. UMA token holders cast and announce their votes on the chain over a period of 2-4 days. Once the votes are announced, the mode of these votes is returned to the financial contract as the value set by the UMA voters for the request for the price. The financial contract then distributes the guarantees to counterparties based on the value returned by DVM.
Since SVM requires 2-4 days to respond to a price request, it is not intended to be used as an on-chain price stream that pushes prices into needing financial contracts. Rather, it is complementary to "priceless" financial contracts.
DVM is designed to include an economic guarantee around the cost of corruption and the profit brought about by corruption. The cost of breaking SVM, measured by the cost of 51% of the UMA voting tokens, must be greater than the profit from forging SVM as measured by the collateral stored in the financial contracts registered to it. To ensure that this disparity continues, SVM may charge from financial contracts used to raise the price of UMA voting tokens.
Why Use UMA?
It went from $ 11 to $ 44 in a week. It is currently down $ 34 with some profit taking.
The top exchanges for trading in UMA are currently Binance, Huobi Global, OKEx, HBTC, and Dsdaq
In summary, the UMA protocol moves derivative transactions to the blockchain. When enough collateral is deposited, it creates a synthetic token, determines the terms of the contract, and ensures that it is used in financial incentives. DEFI project. It will develop its ecosystem with new partnerships in 2021. It should be followed closely.
I bought the day before it started to rise. I got the cost right now. I intend to keep the UMAs that receive profit until the bull season is over. I think the movement is not over yet. This is not investment advice. I wrote down what I did.
As I always said, listen to everyone, decide for yourself ...
I'm looking forward to your comments. Thanks to your comments, we can shape my next articles together. Let's stay in touch… Take care of yourself so that you and the people around you are happy…
