What is Umee (UMEE)?
Umee is a cross-chain DeFi hub that connects blockchains. As a base layer DeFi protocol, an extensive ecosystem of application layer protocols can be built on Umee. The Umee blockchain instead facilitates instant interoperability using the Tendermint Proof of Stake consensus protocol with the Cosmos ecosystem, Ethereum network, sidechain architecture, Layer 2 scaling solutions, and the protocol base layer.
As a Cosmos SDK blockchain, the Umee Network is interoperable with blockchains including Terra, Crypto.com, Binance Chain, Osmosis, Secret Network, and 30+ other chains, plus Ethereum, from Day 1.
The native Umee token is a Proof of Stake asset that can exist as a Cosmos SDK token and an ERC20 token on Ethereum.
Umee is a cross chain DeFi hub, a universal, permissionless platform meant to serve all types of users and projects throughout their DeFi journeys. Umee provides users with the ability to easily lend and borrow across different blockchains. As a base layer DeFi protocol, Umee will provide the necessary infrastructure for users and builders to access cross chain leverage and liquidity.
Token economy
UMEE is the original proof of stake token on the Umee blockchain. Blockchain participants use tokens to pay calculation fees and reward validators (validators) for providing a Tendermint BFT consensus for processing network transactions. This token is also the governance token for decisions about the protocol configuration of Umee, DeFi application parameters as well as product and program recommendations.
UMEE will exist as a token based on the Cosmos SDK as well as the native ERC-20.
Collateral Tokens
There will be 2 types of tokens for collateral of lending and borrowing UToken, meToken.
Utokens
Users who wish to participate in lending deposit their assets through the Umee Bridge to be sent to the Universal Debt Facility. Once the deposit has been confirmed the lender will receive a collateral token, the uToken. For lending their assets, they will receive interest. The uTokens represent the assets lent as well as the interest earned through lending the assets.
uTokens = assets lent + interest from lending their asset
uTokens are ERC-20 compliant and can be transferred between both the Cosmos and Ethereum blockchain via the two-way peg.
MeToken
A user who wants to stake their assets in the Cosmos ecosystem can stake their tokens through Umee and receive a meToken in return. When the stake position earns staking rewards, the meToken concurrently earns staking rewards.
meTokens = assets staked + staking rewards
meTokens are also ERC-20 compliant and can be transferred between both the Cosmos and Ethereum blockchain via the two-way peg.
Token Distribution
ICO on Coinlist
Option 1
- Supply: 300,000,000
- Price: $0.06
- Lockup & release: 2-month cliff followed by a 10-month linear vesting schedule, with tokens released on or around February 15, 2022
- Link to register: https://coinlist.co/umee-option-1/onboarding
Option 2
- Supply: 200,000,000
- Price: $0.07
- Lockup & release: 2-month cliff followed by an 8-month linear vesting schedule, with tokens released on or around February 15, 2022
- Link to register: https://coinlist.co/umee-option-2/onboarding
The UMEE token will empower community governance of the protocol. Users will be able to delegate, debate, propose, and vote on changes to the overall platform. Users will be able to submit proposals for actions such as adding support for new assets, changing collateral factors, adjusting interest rates, or other various parameters
Highlight features
DeFi Center base layer: The Umee blockchain builds on the Cosmos SDK and the Ethereum Virtual Machine (EVM) to build a bridge between DeFi and specific lending use cases. Umee offers a flexible combination of speed and efficiency for blockchain transactions with the ultimate in fast consensus protocol based on Tendermint Proof of Stake.
Proof of Stake Meets the Global Debt Markets – The initial product built on top of Umee will be cross chain borrowing and lending as well as the building blocks for onboarding global debt into DeFi. By creating tools for allowing new leverage components and interest rates, Umee is onboarding new markets and ecosystems into crypto and becoming the leverage facility for the blockchain world.
Cross-chain interoperability: Umee’s vision is to lead the development of the multi-chain world and serve as the foundation for the entire blockchain ecosystem. Umee uses IBC (Inter-Blockchain Communication), the leading Cosmos protocol for cross-chain communication.
Compatible networks
Benefits of token holders
Validator infrastructure
The Umee Blockchain is built on a network of validators that contribute Tendermint BFT consensus to the protocol. Tokens are bonded to validators that stake to provide Proof of Stake to the network. Validators come from an open ecosystem of contributors and infrastructure providers. Tokens can also be delegated to validators by users to participate in the underlying consensus mechanism.
Network Fees and Proof Of Stake Consensus
Network fees will be earned in the form of UMEE tokens by validator infrastructure providers. Similar to how ETH is used as a gas fee to pay for transactions on the Ethereum blockchain, UMEE is used as a gas fee to pay for transactions on the Umee Blockchain. Validators earn block rewards in the form of UMEE similar to how transaction fees are processed in native blockchain protocols.
Protocol Governance
The native UMEE token is also a protocol governance token used to facilitate on-chain governance for the Umee Blockchain. The governance token can be used to vote on configurations of the protocol as well as network upgrades for improving functionality of the blockchain infrastructure. The UMEE governance token will additionally govern DeFi parameters of applications that sit on top of the Umee base layer DeFi protocol.
Backers
Investors can see the big names such as Polychain Capital, Coinbase, Alemeda Research and more. This could be a signal for something exciting and notable for investors. Big investors have taken huge interests in the project, so us should pay attention to it from now on. This could also be a potential, stable project because it hits the right demand in the market. A lot of people are very frustrated of moving money around with so many blockchains and in constant fear of transferring money to the wrong chain. A defi project to “move money like water” tackles the right problem, it’s literally built on multichain.
The team
So far, there hasn’t been much information about the team behind but only 3 people.
Brent – Brent is the founder of Umee. Before joining Umee, he was Strategy Manager at Tendermint, responsible for defining the strategic roadmap and partnerships for Cosmos Network. Prior to Cosmos, Brent was one of the first 30 employees at ConsenSys and a bond dealer on Wall Street.
Alex – Aleks (also known as Bez) is the senior engineer on the Umee blockchain network. Prior to Umee, he was the chief engineer for Cosmos SDK. Aleks has been contributing to the Cosmos ecosystem and an important contribution to the Tendermint Core consensus protocol since its inception. Aleks specializes in peer-to-peer networks, base layer protocols, distributed systems, proof-of-stake and autonomous blockchain networks.
Zac – Zac was one of ConsenSys’s early engineers and a colleague of Brent at the time. Zac has researched and contributed to several core Ethereum scalability protocols such as TrueBit, State Channels, and Plasma. He also developed bridging protocols like X-Relay, the precursor to POA networks like xDAI.
Thoughts on Umee
This project is clearly a long term investment project; it solves one of the most annoying issues in the crypto market. As mentioned above, losing your money when transferring across different chains is the worst problem, especially for newbies entering the market. Even once in a while users have to look twice or even unsure when transferring coins. Sometimes, they send small amount just to make sure. DeFi has flourished on Tendermint-enabled networks such as Binance Smart Chain and Terra, but assets on those networks live at a distant remove from DeFi on Ethereum.
Cross chain DEFI is a huge breakthrough to the market, as well as the claim of solving scalability with instant sending and receiving assets. Also, having raised $6.3M recently to connect Cosmos and Ethereum backed by various popular investors as mentioned above, the project is confident in their development following the testnet and expansion of the platform in 2022.
One more unique feature is using NFT as collaterals for lending/borrowing. This has probably come from the understanding the trend of NFT, and other projects in the market rarely have NFT usage in their DEFI platforms. If using NFT assets as collaterals and trading, what might lie ahead in the future because they will probably develop more features for users to store and trade NFTs cross chain easily.
The world of DEFI is slowly advancing to a different and more dynamic front. Umee is one the latest improvement that contributing to the greater good of crypto market. The project is promising in a way they show the understanding the demand of market. Definitely should give it a try when one has interest in long term investment and cross chain Defi.
Disclaimer: this is not a financial advice.
