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– TIMESTAMPS –
2:04 What’s UMA?
4:27 How UMA Works
7:25 UMA Tech Framework
10:32 Priceless Oracles
12:28 UMA Token
14:36 Value Economics
16:26 UMA Hypothesis
⛓️ 🔗 Helpful Hyperlinks 🔗 ⛓️
► UMA Web site:
► UMA Docs:
► UMA Whitepaper:
► OTC Derivs Market:
► UMA Token Sale data:
📝 What’s Common Market Entry 📝
It’s a decentralised protocol for creating monetary markets which can be globally accessible. It gives a framework for customers to create artificial derivatives on the Ethereum protocol.
It permits any two customers to enter a monetary contract. One that doesn’t depend on some centralised entity to implement. One that’s safe with financial incentives alone.
🖥 How UMA Works 🖥
UMA defines an open-source protocol that permits any two counterparties to design and create their very own monetary contracts. That is all by way of the usage of decentralised Ethereum Sensible contracts.
Every UMA contract contains these 5 separate parts.
– Public addresses of all of the counterparties
– Margin accounts for every of those counterparties
– Financial phrases to calculate the worth
– Sensible contract capabilities to keep up the margin balances
– An oracle that can present safe and verified offchain information
These parts assist to make sure that the contract is ready to implement the foundations agreed.
🤔 Priceless Contracts 🤔
These priceless monetary contracts are designed with mechanisms to be able to make sure the counterparties will all the time collateralise their positions with out counting on any of those value feeds.
The purpose right here is that Oracles are usually not wanted until there may be ever a dispute a couple of liquidation. Nonetheless, the financial incentives constructed into the protocol are designed to be able to make the necessity for this dispute course of rare.
That is all by way of the usage of the Dispute Verification Mechanism or UMA’s “DVM”. That is used to be able to settle disputes that there could also be between two contracting events aruond the actual value of the asset on conclusion of the contract.
The genius of this DVM oracle design is that they’ve developed a sport theoretic equilibrium the place the price of manipulating the oracle is all the time larger than the revenue that might be earned by corrupting the oracle.
💲 UMA Token 💲
The UMA token is an ERC20 token on the protocol and its foremost objective is as a utility token. There was an preliminary provide of 100 million UMA.
It had an preliminary uniswap itemizing again in April the place they bought off 2 million tokens for a value of 26 cents per token. Additionally, you will see that there’s over 48% that’s reserved for personal backers and buyers
In terms of the use circumstances for UMA, there are three foremost capabilities:
– Governance: The place customers can earn inflationary rewards for participation
– Disputes: The place tokens are used to incentivise value requests throughout these disputes.
– Charges: I discussed this earlier than however these are charges which can be burned to extend the value.
📈️ Tokenomics 📈
Firstly you’ve gotten the protocol inflation which is presently 0.05%. That is really actually delicate when in comparison with most different tokens and is even lower than inflation on the likes of Bitcoin.
You even have these burns which can be happening to be able to lower the excellent provide and therefore improve the value. The precise quantity that’s charged in charges will improve proportional to how a lot is being locked up within the contracts
Having a look on the demand aspect, as extra individuals are coming into these contracts, they might want to purchase UMA to be able to pay the charges for potential disputes.
You then even have that governance demand which is a bit tougher to find out. You’ll have to take judgement name round how a lot you actually worth this and the advantages that come from with the ability to vote on these UMIPs.
📜 Disclaimer 📜
The data contained herein is for informational functions solely. Nothing herein shall be construed to be monetary authorized or tax recommendation. The content material of this video is solely the opinions of the speaker who isn’t a licensed monetary advisor or registered funding advisor. Buying and selling Foreign exchange, cryptocurrencies and CFDs poses appreciable threat of loss. The speaker doesn’t assure any specific final result.
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Source: Coin Bureau