1/23 @Umee_CrossChain is bridging the $200 Trillion Global Debt Capital Markets into the Cosmos.
How a Web3 Native Debt Market is being built on $UMEE. 🧵👇
How a Web3 Native Debt Market is being built on $UMEE. 🧵👇
2/23 First of all... What is @Umee_CrossChain ?
Umee is a permissionless rate algorithm chain focusing on making the global markets accessible to ALL.
As a result Dapps and Primitives can be built on top of Umee to access cross chain leverage, liquidity, and debt instruments.
Umee is a permissionless rate algorithm chain focusing on making the global markets accessible to ALL.
As a result Dapps and Primitives can be built on top of Umee to access cross chain leverage, liquidity, and debt instruments.
3/23 There are 2 issues $UMEE is attempting to solve and bridge simultaneously:
✔ Legacy Markets
✔ DeFi
✔ Legacy Markets
✔ DeFi
4/23 The Global Bond Markets are Massive!
However they bring with them:
1️⃣ Lack of Accessibility
2️⃣ Lack of Transparency
3️⃣ Conflicts of Interests
However they bring with them:
1️⃣ Lack of Accessibility
2️⃣ Lack of Transparency
3️⃣ Conflicts of Interests
5/23 There exists 3 Issues with DeFi
1️⃣ Speculative Yields (No Value add)
2️⃣ Lack of Tooling (No understanding of Time Value)
3️⃣ Capital is Isolated (TVL is concentrated)
1️⃣ Speculative Yields (No Value add)
2️⃣ Lack of Tooling (No understanding of Time Value)
3️⃣ Capital is Isolated (TVL is concentrated)
6/23 How $UMEE is solving this
👉Building a term structure which focuses on time-to-maturity and credit-worthiness to determine rates
👉This provides the basis for developing Crypto primitives such as notes,bills, bonds
👉Debt primitives can be built to support long term focus
👉Building a term structure which focuses on time-to-maturity and credit-worthiness to determine rates
👉This provides the basis for developing Crypto primitives such as notes,bills, bonds
👉Debt primitives can be built to support long term focus
7/23 By combing/leveraging blockchain technology @Umee_CrossChain is building a foundation for the next wave of capital markets.
The Focus:
✔Decentralization
✔Transparency
✔Immutability
✔PoS-based interest rates
✔Decentralized credit rating systems.
The Focus:
✔Decentralization
✔Transparency
✔Immutability
✔PoS-based interest rates
✔Decentralized credit rating systems.
8/23 How will $UMEE do this?
Users will not only be able to borrow assets across blockchains...
But also collateralize staked assets in the Cosmos to borrow from $ETH for example.
Users will not only be able to borrow assets across blockchains...
But also collateralize staked assets in the Cosmos to borrow from $ETH for example.
9/23 Meet the "U" Token
Users who deposit assets into the smart contract are given a "U" token.
👉Grows over time while they accrue interest
👉Represents collateral than can be used to borrow
👉Can be Bridged across
Users who deposit assets into the smart contract are given a "U" token.
👉Grows over time while they accrue interest
👉Represents collateral than can be used to borrow
👉Can be Bridged across
10/23 The "ME" Token 🤝
$UMEE will also allow users to collateralize a borrow position using staked assets.
$UMEE will also allow users to collateralize a borrow position using staked assets.
11/23 The 2 ways to use the MeToken:
1️⃣ Staked $ATOM can be collateralized to borrow $DAI. Paying interest on the loan WHILE still earning validator rewards on the ATOM.
2️⃣Staked $ATOM rewards can be liquidated for a loan. The interests paid are supplemented the staked asset.
1️⃣ Staked $ATOM can be collateralized to borrow $DAI. Paying interest on the loan WHILE still earning validator rewards on the ATOM.
2️⃣Staked $ATOM rewards can be liquidated for a loan. The interests paid are supplemented the staked asset.
12/23 As with any Lending Protocol, Asset risk needs to be managed.
uTokens pose an additional layer of risk to $UMEE
✔Increased number can create risk of one failing
✔Increased number also diversify asset
Before an asset can be added to UMEE, a proposal must be passed.
uTokens pose an additional layer of risk to $UMEE
✔Increased number can create risk of one failing
✔Increased number also diversify asset
Before an asset can be added to UMEE, a proposal must be passed.
13/23 @Umee_CrossChain will enable the transfer of assets via the use of 2 bridging solutions.
1️⃣ @gravity_bridge
2️⃣Messaging Bridge- a libp2p based gossip network
These two way bridges will allow for ERC-20 tokens to come into the Cosmos and vice versa.🤯
1️⃣ @gravity_bridge
2️⃣Messaging Bridge- a libp2p based gossip network
These two way bridges will allow for ERC-20 tokens to come into the Cosmos and vice versa.🤯
14/23 As a result of the complexity, @Umee_CrossChain needs to be able to track depositors, borrowers, liquidity providers via the
The Asset Facility Coordination Protocol ensures:
👉LTV levels
👉Collateralization rates
👉Loan Liquidation
👉Adjusts Interest Rates
The Asset Facility Coordination Protocol ensures:
👉LTV levels
👉Collateralization rates
👉Loan Liquidation
👉Adjusts Interest Rates
15/23 So where does that put the $UMEE token? 🔥
Token Utility:
1️⃣ Security (Staking)
2️⃣ Network Fees
3️⃣ Governance
Token Utility:
1️⃣ Security (Staking)
2️⃣ Network Fees
3️⃣ Governance
16/23 Distribution of the $UMEE token:
46% Community Pool ( can be used for grants, incentives)
9% Ecosystem
5% Public Sale
14% Private Round
15% Team (Vested over 30 Months)
10% UMEE labs
1% Advisors (Vested over 30 Months)
46% Community Pool ( can be used for grants, incentives)
9% Ecosystem
5% Public Sale
14% Private Round
15% Team (Vested over 30 Months)
10% UMEE labs
1% Advisors (Vested over 30 Months)
17/23 With a total supply of 10 billion $UMEE tokens
The inflation and deflation mechanism in place to align the UMEE token distribution with long term goals of the ecosystem.
Deflation can be adjusted by Governance. 👀
The inflation and deflation mechanism in place to align the UMEE token distribution with long term goals of the ecosystem.
Deflation can be adjusted by Governance. 👀
18/23 So where does this all take us?
How do we curtail liquidity into the Cosmos from the traditional markets?
Meet @UDX_fi
How do we curtail liquidity into the Cosmos from the traditional markets?
Meet @UDX_fi
19/23 @UDX_fi as the Lending DAO of the Umee Chain sole goal is to bring the Trillion Dollar Capital Markets into the Cosmos.
Every Loan Issue is a Blockchain which enables...
👉TVL can be used as Collateral
👉Blockchain can be a Ledger
👉Healthier Loan underwriting practices
Every Loan Issue is a Blockchain which enables...
👉TVL can be used as Collateral
👉Blockchain can be a Ledger
👉Healthier Loan underwriting practices
20/23 $ATOM 2.0 and Interchain security will play a huge role in this adoption of cross chain collateralization.
Fly Wheel = @UDX_fi loans will be consumer chains for Umee.
$UMEE Tokens
👉 Used as insurance for loans
👉🪂 from lending protocol
👉 Value accrual from activity
Fly Wheel = @UDX_fi loans will be consumer chains for Umee.
$UMEE Tokens
👉 Used as insurance for loans
👉🪂 from lending protocol
👉 Value accrual from activity
21/23 I leave you with a quote from @bond_dog_51
"Ultimately we want to rebuild the bond markets, but eventually we want to be bigger than the bond markets...by bringing open source code, connecting everything with IBC. We will build a better Market for the future generations"
"Ultimately we want to rebuild the bond markets, but eventually we want to be bigger than the bond markets...by bringing open source code, connecting everything with IBC. We will build a better Market for the future generations"
22/23 If you would like further details on @Umee_CrossChain
Check out their white paper:
tinyurl.com
And check out their #Cosmoverse presentation
Check out their white paper:
tinyurl.com
And check out their #Cosmoverse presentation
23/23 Thank you for reading!
I hope you've found this thread helpful:
Follow me @Flowslikeosmo for more.
Retweet the first tweet below 👇
I hope you've found this thread helpful:
Follow me @Flowslikeosmo for more.
Retweet the first tweet below 👇
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