UMA

  • UMA
  • Introduction

    UMA enables DeFi developers to build synthetic assets. UMA builds open-source infrastructure for “priceless” financial contracts on Ethereum. Specifically, this is two things:

    • Priceless financial contract templates used to create synthetic tokens
    • Decentralized Oracle Service used to manage and enforce contracts on UMA
    Together, these two technologies enable the creation of fast, efficient, and secure derivatives on Ethereum.

  • About The Project

    UMA token is used to operate UMA's dispute resolution system, known as the Data Verification Mechanism (DVM). Owning UMA gives you the ability to contribute price information to the DVM and govern UMA protocol.

    The benefits of owning UMA include:

    • Earning rewards for voting on price requests from financial contracts using the DVM
    • Earning rewards for governing the UMA ecosystem by voting on parameter changes and approving system upgrades
    System upgrades can include supporting new price identifiers or collateral types. Voters who participate and vote correctly earn an inflationary reward (currently 0.05% of total network token supply), distributed pro-rata by stake.