What is UMA (UMA)?

A
Comments: 0Views: 1,637

admin

Administrator
Staff member
View attachment 719
TL;DR

UMA is an Optimistic Oracle (OO) designed to record every known fact into a blockchain. Oracles are entities that connect blockchains to the outside world. Optimistic Oracle is a kind of oracle that feeds real-world data into a decentralized system; This data is assumed to be correct if there is no dispute surrounding it. Optimistic Oracle is called a "human-powered truth machine", with the goal of making Web3 flexible and unlocking limitless potential; making the global marketplace fair, accessible, secure and globally decentralized.

Introduce​

UMA was co-founded in 2017 by Hart Lambur. In December 2018, the UMA project white paper was published and soon after, the developers officially launched the UMA project and introduced the USstocks token as the first product on the core network. UMA held an initial liquidity offering in April 2021 on the Uniswap decentralized exchange.

UMA stands for Universal Market Access, the project creates optimistic oracles that help protect markets and smart contracts on Web3. Due to imperfect or imprecise information, the off-chain data that is essential to meeting the conditions for a smart contract may be insufficient or incorrect. Current oracles are too rigid because they provide single values and cannot account for other data types. To accommodate imperfections, OO encourages people to verify the accuracy of data, facilitating advanced data verification with the human element.

How does UMA work?​

There are three actors in UMA's Optimistic Oracle system: the data request contract, the participant providing the data, and a potential disputing party who can dispute the data if they disagree.

Request​

UMA's OO incentivizes network token holders to ensure that correct data is provided on-chain. OO can make any data available through its community of token holders, adding a human element to its data verification process.

Offer​

Typically, the contract requires data and specifies a time period for the dispute (which can range from minutes to days). The proponent posts a bond and provides a data point, which will be disputed. After the dispute period has passed, the data is assumed to be true and transferred to the blockchain and the proponent receives their bond back. During a dispute, someone may feel that the data is incorrect and challenge it.

Dispute​

At times, it may appear that an objector disagrees with the data of the proponent. The disputing party also posts a bond, and the dispute results in a vote. UMA token holders resolve disputes within 48 hours. If the disputant is correct, they will receive a portion of the proposer's deposit as a reward; if the disputant is wrong, they will lose their deposit as a penalty, part of which will go to the proponent. Voting in the orcale consists of three stages:
  • Voting Time: The 24-hour period when the vote is recorded.
  • Voting Confirmation: The time period when a user's vote is revealed and the results are checked.
  • Reward Claim : The period during which a user who voted “right” can receive a reward in UMA tokens generated by the protocol.
Rewards will accrue as they are received. Claiming the reward will impact the tokens in the user's wallet, turning them into active voting tokens and increasing the user's voting power with each successful vote.

UMA smart contracts are designed primarily for developers building decentralized applications. However, all UMA token holders can participate in the optimistic oracle of UMA. UMA is an ERC-20 token built on Ethereum that can be held in wallets like Metamask, Trezor or Ledger, which must be connected to the UMA DApp to enable voting.

What makes UMA unique?​

UMA's OO provides human-powered data dispute resolution between smart contracts. Unlike standard price feed rules that are rigid and provide only single, repeatable values on a blockchain, OOs provide a way to reconcile imperfect or unknown data. between smart contracts. OOs are more flexible than other oracles because they can provide any kind of truth that can be known from off-chain, like sports scores, weather conditions, or election results, which makes the potential of such systems for Web3 are limitless.

What is UMA token?​

UMA is an ERC-20 token and is the foundation of the UMA security model. As mentioned, token holders can participate in community voting on disputed data. UMA holders earn rewards when they participate in voting. An inflation bonus equal to 0.05% of the current UMA supply is distributed to active voters every time the network votes.

These token holders also participate in governance, protocol upgrades, and changes to the UMA system.

Initial token supply is 100 million. In April 2021, UMA held its initial token offering on the Uniswap decentralized exchange, with an initial price of $0.26. Of the remaining 98 million tokens, 48.5 million tokens are reserved for the project founders, 35 million tokens are allocated to the network's developers, and 14.5 million tokens are reserved for the initial public offering. future.

In 2021, Risk Labs, the platform that initiated the UMA, moved 35 million tokens to the UMA DAO, allowing UMA token holders to vote on when and where to deploy funds for the development of the ecosystem. .

How will UMA continue to develop?​

UMA's business development team is focusing on two segments: prediction and insurance markets.

Currently, risk management platform Sherlock uses UMA's oracle as the foundation for their insurance policy dispute system. Polymarket, an information markets platform, will soon use UMA's optimistic oracles to reliably process information.

UMA is expected to grow significantly as a DAO tool for governance and incentives. Outcome.Finance, powered by UMA, is providing ways for the DAO to run trustless incentives. Risk Labs is the team and foundation behind UMA, as well as its partner organizations, Across Protocol and Outcome.Finance . UMA and optimistic oracle are currently supporting cross-chain bridge.

How to buy UMA on Binance?​

Users can buy UMA on cryptocurrency exchanges like Binance.

1. Login to your Binance account and click [Trade] -> [Spot].

2. Type “UMA” in the search bar to see the available trading pairs. We will use UMA/BUSD as an example.

3. Go to the [Spot] box and enter the amount of UMA you want to buy. In this example, we will use the Market command. Click [Buy UMA] to confirm your order and the purchased UMA will be credited to your Spot Wallet.

summary​

UMA's Optimistic oracle has raked in hundreds of millions of dollars since its launch in 2018. As developers begin to understand and want to incorporate optimistic oracles, it may be time for optimistic oracles to take center. of a variety of protocols, DAOs, integrations, and products.
 

Please login or register to comment here.

Members online

No members online now.

Forum statistics

Threads
1,089
Messages
1,133
Members
1,008
Latest member
ntna
Top