UMA – Promising Play for DeFi Investors

Decentralised Finance (DeFi) is growing at a very fast speed and scaling rapidly. Ethereum laid the foundation of DeFi as financial products can be created using smart contract build on Ethereum protocol. It enables peer to peer transaction using decentralised technologies and protocol. DeFi Ecosystem is growing and large number of tokenised assets are being created using DeFi protocol. Decentralised finance is set to grow in the future as its permissionless, secure and enables all the sort of innovations. Various rules can be written to meet the customer needs. Traditional financial systems do not allow trading of fractional order but same is not an issue fractional order are transacted on blockchain. Customer who is trading in the decentralised markets does not have to pay intermediary fees like in charged by the physical exchanges.

UMA is one of the promising players in DeFI space.  It enables anyone to create decentralised financial products using its platform.

UMA is a protocol for developing decentralized financial products and is fast, flexible and secure. Various projects are build using UMA Platform.  It enables tokenisation of bonds, financial products, derivative products and products with wide range of applications. UMA supports building financial products on its platform using UMA integration options which includes KPI options, Range Bonds, Call/Put options etc.  

PieDAO is a decentralised Asset Manager holding a portfolio of tokenized assets. It is building products using UMA KPI options protocol.

PerlinX, is a synthetic assets generation platform and a decentralised liquidity pool. It has partnered with UMA for the launch of its synthetic asset designed to track the price of one ounce of gold. The synthetic asset is px gold and it will be collateralized by the PERL token. The PerlinX platform, through its partnership with UMA will enable its users to generate synthetic assets, using perl as a collateral. The token will allow the users to have exposure to gold without going to banks and exchanges and paying fees.  Mini Mario Winter Cash is another such project which tracks Bitcoin Cash, based on UMA Protocol.

Bank for International Settlements is working on various projects to promote DeFI and Central Bank Digital Currencies. It has recently come out with a consultation paper proposing prudential framework for Crypto Assets and enabling the banks to deal with them. peer to peer transactions using Decentralized technologies and protocol will be the future of financial world. Earlier Jack Doresy, CEO of Square said that Square will be building DeFI Services using Bitcoin network. Competition is set to intensify in future as more and more tech players will entering the space. Universal Market Access (UMA) will one such DeFI services platform which will benefit from growth in the market size and may become one of the significant platforms in future.

Bureau Galactik Views

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