Cryptocurrency Umee

What is Umee (UMEE)?

Umee is a decentralized infrastructure for internetworking between networks. Umee connects users to create lending and borrowing positions, move capital between blockchains, discover new yield opportunities, and explore cross-chain DeFi applications in a flawless and trustworthy manner.

Umee is a cross-chain DeFi hub that can provide assets on one blockchain to borrow assets on another blockchain. The platform specializes in allowing assets from POS blockchains to be used as collateral for blockchain borrowing. The platform uses a combination of interest rates determined by an algorithm based on market conditions. As a DeFi cross-chain protocol, Umee will enable many decentralized finance products.

Umee is built on Cosmos using IBC as layer 0 protocol for block to block communication and interoperability.

Using the Gravity Bridge to connect to Ethereum, Umee will interact with several bridge solutions to create a one-stop crypto hub.

Umee will be a leader in cross-chain staking and delegation, cross-chain liquidity mining and asset allocation, and multi-chain stakedrops.

“Umee plans to break down the inherent silos between blockchains by using bridging solutions to unify blockchains and encourage capital efficiency improvements. The end goals will be enabling cross-chain lending and borrowing, multi-chain staking and delegation, and cross-chain DeFi staking,” the developers say.
The name Umee was inspired by the Japanese word "Umi", which translates to ocean.

“We use this watery analogy to refer to the vision that transactions can take place without being limited to specific systems; That is, money can flow freely, like water, across different blockchains. Moreover, Umi aims to help connect the world of cryptocurrencies; the name itself stands for connectivity, as it combines "U" and "Me",” the developers explain.

Benefits

Cross chain support

Users easily interact with multiple networks.

Capital Efficiency

Capital flowing through networks will no longer exist in disparate vaults, and liquidity is interconnected and available without borders.

PoS yield

DeFi protocols will interact with Proof of Stake returns, while derivatives staking will create new financial paradigms.

DeFi Hub

Universal platform without access rights, open to all users and projects in DeFi.

Tokenomics of UMEE

UMEE token is the native coin of the platform. It is used to pay commission for operations, reward validators. It is also a control token. Gives the opportunity to vote for changing the rules and characteristics of the protocol, parameters of decentralized applications, launching new products. It will be presented in two formats: Cosmos SDK and ERC-20. This will allow the coin to operate seamlessly on all networks based on Cosmos and EVM.

The total issue is 10,000,000,000 pieces.

Validator infrastructure

The Umee blockchain is built on a network of validators that bring the Tendermint BFT consensus into the protocol. Tokens are pegged to validators that stake tokens 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 staking-based consensus confirmation

Network fees will be earned in the form of UMEE tokens by validator infrastructure providers. Just as 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 receive block rewards in the form of UMEE, similar to how transaction fees are handled in native blockchain protocols.

Protocol management

The UMEE Native Token is also a protocol governance token that is used to facilitate the governance of the Umee blockchain. The governance token can be used to vote on protocol configurations as well as network upgrades to improve the functionality of the blockchain infrastructure. The UMEE governance token will further manage the settings of DeFi apps that run on top of the Umee base layer DeFi protocol.

Additional tokens
Umee uses two types of additional tokens, uTokens and meTokens, to facilitate cross-chain lending and borrowing.

uTokens
Users who wish to participate in lending deposit their assets through the Umee bridge, which will be sent to the domain. After confirming the deposit, the lender will receive an additional uToken. For lending their assets, they will receive interest. UTokens represent loaned assets as well as interest earned from loaning assets.

uTokens = loaned assets + interest on loaning their asset.

uTokens comply with the ERC-20 standard and can be transferred between the Cosmos and Ethereum blockchain via a two-way peg.

meTokens
A user who wants to stake their assets in the Cosmos ecosystem can stake their tokens through Umee and receive meToken in return. When a position earns a staking reward, meToken simultaneously earns a staking reward.

meTokens = reserved assets + staking rewards.

meTokens are also ERC-20 compliant and can be transferred between the Cosmos and Ethereum blockchain via a two-way peg.

Project prospects

Brent Xu sees an inevitable crossover between traditional finance and DeFi in the future. The current global debt is over $275 trillion. In the next five years, the two directions are expected to connect, thanks to which transparent reporting will come to the TradeFi niche. It will be provided by immutable public blockchain data for 100% of transactions.

Yumi will bring a new perspective on yield curves in the Proof-of-stake sector, the term structure of interest rates. Thanks to the unique blockchain, the speed of creating and implementing new protocols and applications will be increased several times.

A specific interface will be developed for the application of NFT in decentralized finance. In addition to using non-fungible tokens as collateral, the possibility of presenting digital assets, positions of the DeFi sphere as NFTs is being considered. As a result, a Metaverse will be created in which NFT collectors and users of financial Dapps will be able to collaborate, build a Web 3.0 style future.