Furthermore, Umee aspires to link the cryptocurrency world; the name itself implies connectedness by combining the letters “U” and “Me.”
Umee is a decentralized infrastructure for cross-chain interactions. Umee links people in a frictionless and trustless method to form lending and borrowing positions, transfer capital across chains, uncover new return opportunities, and explore DeFi applications.
After hitting its target, the Umee ($UMEE) project recently carried out a successful ICO. The token sale for Option 1 began on December 2 at noon (Synthetic Team time). The total supply was 300,000,000 at $0.06. The option has a 2-month cliff followed by a 10-month linear vesting schedule, with tokens released on or around February 15, 2022.
The Umee Blockchain – The Cross Chain DeFi Hub
Umee, as a primary layer DeFi protocol, may be used to build an ecosystem of apps. The Umee Blockchain enables immediate interoperability with the Cosmos ecosystem, Ethereum network, side-chain architectures, layer two scaling approaches, and other base layer protocols by utilizing the Tendermint Proof of Stake consensus protocol.
A few reasons why Umee is exciting:
A Base Layer DeFi Hub
The Umee Blockchain is developed on the Cosmos SDK and the Ethereum Virtual Machine to link DeFi and lend specialized application cases. Umee uses a quick finality consensus system based on Tendermint Proof of Stake to provide a variable speed and efficiency for blockchain transactions.
Cross Chain Interoperability
Umee aims to lead a multi-chain world and be a cornerstone of the whole blockchain ecosystem. Umee employs the primary Cosmos protocol for cross-chain communication, IBC (Inter-Blockchain Communication).
Proof of Stake Meets the Global Debt Markets
The first product created on Umee will be cross-chain borrowing and lending and the foundation for onboarding global debt into DeFi. Umee is integrating new markets and ecosystems into crypto and becoming the leverage facility for the blockchain world by developing tools for permitting additional leverage components and interest rates.
On the Umee blockchain, UMEE is the original proof of stake token. Blockchain participants use tokens to pay computation fees and compensate validators (validators) for establishing Tendermint BFT consensus for network transactions. This token also serves as the governance token for choices about Umee protocol configuration, DeFi application parameters, and product and program recommendations.
UMEE will be available as a Cosmos SDK-based token and a native ERC-20 token.
Collateralized Tokens on the Platform
Users that want to lend deposit their assets through the Umee Bridge have them delivered to the University Debt Facility. After the deposit has been validated, the lender will receive a collateral token, the uToken. They will be paid interest for lending their assets.
The uTokens reflect the assets lent and the interest collected from lending the assets. uTokens are ERC-20 compatible and may be exchanged via the two-way peg between the Cosmos and Ethereum blockchains.
Users who want to stake their tokens in the Cosmos ecosystem can use Umee and earn a meToken in exchange. When the stake position receives staking rewards, the meToken makes staking benefits. meTokens are ERC-20 compatible and may be moved between the Cosmos and Ethereum blockchains via the two-way peg.
Token Inflation Deflation Mechanism
Umee’s inflation plan is predicated on a 67 percent target staking participation rate. The inflation rate will stay constant after the network has staked 67 percent of all Umee tokens. When the network has staked more than 67 percent of all Umee tokens, the inflation rate will steadily fall until it reaches the floor inflation rate of 7 percent. The inflation rate will steadily grow until it comes to 20%, the ceiling inflation rate when the network has fewer than 67% of all Umee tokens staked.
The Umee blockchain’s dynamic inflation rate and staking mechanism is the ultimate security technique that ensures the network’s security. Users will utilize a governance-determined percentage of the platform fees produced by the initial borrowing and lending capabilities to buy back and burn Umee tokens. Additional token supply deflation will occur as a result of governance-determined procedures.
Furthermore, for the optimal long-term growth of Umee, governance may decide to burn any community and ecosystem tokens in the future.
In the long run, Umee will serve as a cross-chain DeFi hub, linking multiple ecosystems and creating unique financial products on top. Layer 2 scaling options, side-chain architectures, tools from the roll-ups ecosystem, and alternative base layer protocols for linking blockchain networks will all be included in Umee.
The project has been experimenting with interest-rate instruments and other novel financial primitives within their DeFi Hub, which will serve as the core infrastructure for the emerging crypto world. It is ultimately intended to become a hub of activity, like a decentralized World Bank, where users can use assets on one blockchain to interact with others.