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Choose your quick section of our UMA review below.
A Quick Overview of our UMA Review:
With UMA contracts, which are based on the Ethereum blockchain, have an inherently permissionless nature that allow users to create, run, and trade digitised derivatives.
UMA Live Price
What is UMA?
Universal Market Access (UMA) is a cryptocurrency protocol for the creation of synthetic assets based on the Ethereum (ETH) blockchain. UMA makes it possible for anyone to access financial risk and to participate in the largest financial market in the world, the derivatives market.
Key Features and Takeaways of UMA
UMA is an innovative and popular cryptocurrency platform and project that has the following key features and takeaways:
UMA can trace its beginnings to Wall Street with Hart Lambur and Allison Lu who met on the trading floor at Goldman Sachs.
The idea behind Universal Market Access is reflected in the name of the project. It surrounds the development of a protocol for synthetic assets to be created along with financial contracts, all based on blockchain technology.
UMA seeks to democratise and decentralise the largest market in the world, the derivatives market.
Traditional financial markets are known for their high barriers to entry as result of regulations and custody requirements. These tend to preclude individuals from being able to participate freely in them, especially would-be traders, and investors.
With UMA contracts, which are based on the Ethereum blockchain, have an inherently permissionless nature that allow users to create, run, and trade digitised derivatives.
UMA provides vital accessibility which is crucial for developing economies based around the world where financial institutions are not mature, subsequently forcing local market participants into isolation.
UMA allows users to trade any asset using ERC20 tokens without the user being exposed to the underlying asset itself. This provides users with expose to assets which may have been out of reach otherwise.
The UMA token, the native token of the protocol, is used for governance over the protocol in addition to being used for the price oracle.
UMA opens an entire world of possibility for decentralised finance (DeFi), allowing for any asset to be used as collateral in the creation of synthetic tokens linked to real-world assets.
Derivatives are contracts between two parties regarding an asset, especially the future price of that asset, and neither party is entitled to owning or exchanging the asset. Instead, there is a certain amount of collateral that is exchanged at a stipulated date and time, based on the price of the asset at the time.
UMA integrates derivatives onto the blockchain by creating a synthetic token for the asset when there is an adequate amount of collateral deposited, creating contract terms for the issued token, and enforcing them by using financial incentives.
UMA users are provided with financial incentive to identify and subsequently liquidate token issuers that they believe to be undercollateralized.
UMA, as opposed to other similar DeFi projects, does not use price oracles as it considers the use of these oracles to be a significant issue in DeFi, primarily as result of oracles being susceptible to failure during “black swan” financial events and manipulation.
The synthetic tokens of UMA are characterised by their price identifiers, expiration dates, and the collateralisation requirement that they have.
UMA makes use of smart contracts to create synthetic tokens which represent a specific asset. Any user can create a smart contract in UMA’s Token Facility by defining and/or meeting the three characteristics mentioned in the point above.
UMA is different from other DeFi protocols in that it does not require consistent price feeds to ensure that the protocol continues to operate. UMA uses a Data Verification Mechanism (DVM).
Users who hold UMA tokens have two responsibilities namely voting on the price of an asset when requests are given to the DVM and to vote on any changes and/or improvements to the UMA platform.
UMA Mining
As result of the unique architecture of UMA, tokens cannot be mined or staked. However, users can earn UMA tokens in a variety of ways. UMA tokens are used to operate the dispute resolution system which is known as the Data Verification Mechanism (DVM).
Those who hold UMA, users are granted the ability to contribute price information to the DVM and to govern the UMA protocol. Users can earn UMA when they vote on price requests from financial contracts through the DVM. Users can also earn rewards in governing the UMA protocol by voting on parameter changes.
Those who vote correctly will earn an inflationary reward, which is currently 0.05% of the total network token supply, which is distributed pro-rata by stake.
Pros and Cons
| ✔️Pros | ❌Cons |
|---|---|
| UMA allows for the quick creation of synthetic tokens with priceless contract templates | The DeFi space is a competitive field and there are other competitors working towards the tokenisation of assets, creation of synthetic assets, and disruption of the derivatives market |
| Users have freedom to create tokens that track the price of anything | |
| UMA is secure and contracts cannot be manipulated | |
| UMA works to increase security and reduce costs | |
| UMA provides an honest DeFi protocol that has a unique decentralised oracle design | |
| UMA provides users with easy access to the derivatives sector as well as other financial markets | |
| UMA tokens provide users with user power on the protocol | |
| UMA allows users to promote and gain exposure for assets by showing it to potential investors worldwide |
Transaction Fees
| Type of Fee | Information |
|---|---|
| Withdrawal Fees | 2 UMA |
Should you buy UMA?
UMA is a DeFi project that has unlimited potential, especially when considering its purpose of making derivative markets accessible by anyone in the world. UMA has given early investors with high returns and this is still a driving force for more investors to join the protocol.
How to buy UMA (UMA)
Step 1 – Register an account with Gate.io
Navigate to the official Gate.io website and select the option to “Sign Up” from the homepage.
Complete the online registration form by providing country/region, a selected username, email address, and user-selected password. Read and accept the User Agreement and Privacy and select “Next”.
Create a fund password and select “Create Account”. Complete the “I am not a robot” reCAPTCHA. Check your email inbox for the activation email and click on the link in the email. If the link does not work, you can copy and paste the URL into your browser.
Log into your account using your credentials and complete the reCAPTCHA.
Check your email again for the verification email that contains the 6-digit code and click on “Confirm”. Enter the code that you received into the blocks provided and select “Log In” to proceed.
Before you can use the platform to purchase UMA/UMA and other cryptocurrencies on Gate.io, you must complete the “Know Your Client” or KYC procedure to verify your identity and your proof of residence.
Click on “KYC Now” at the bottom of the webpage to start the process.
Select whether you are an individual or an organisation by selecting “Verify Now” under the relevant option.
Select your country from the dropdown list, enter your full name followed by confirmation thereof. Select your ID document type and provide your ID Number as shown on your official ID Document.
Click on the first image to upload a clear photo of the front of your ID document followed by a clear photo of the back of the document.
Next, write your Gate.io unique ID on a piece of paper and take a photo of yourself holding up your identity document (front) and the paper containing your unique ID.
Once you have done this, click on “Confirm and Submit”.
Next, you must enable the Timed One-Time Password (TOTP) to be able to log into your account. This can be done by clicking on “Set Now” at the bottom of the page.
On the new page that loads, select “Click here” to set up Two-factor Authentication.
Download Google Authenticator onto your mobile device by making use of any of the abovementioned methods.
Follow the steps indicated to add your Gate.io account by scanning the QR code or entering your unique key.
Enter the TOTP, your fund password, and the code sent to your email address and select “Enable Two-factor Authentication”. With this setup, you must use the Google Authenticator app to sign into your account every time.
Step 2 – Deposit funds
You must note that Gate.io is only a crypto-to-crypto exchange which means there is no fiat gateway. The only way through which funds can be added, is to transfer an existing crypto into your Gate.io wallet.
UMA can only be bought through Tether/USDT or Bitcoin/BTC while it can be traded with USD as a futures contract.
Navigate to the deposit/withdrawal section by hovering over your account and selecting the relevant option. Choose from the list of coins in which you can make a deposit and select “deposit” next to the appropriate coin.
You will be redirected to a page which generates a deposit address for the coin that you wish to deposit.
Copy this address, or scan the QR code, into the wallet where you are making a withdrawal from and depositing to Gate.io and wait for the relevant blockchain to confirm your transaction. Once the transaction has been completed and verified by the nodes on the chain, the coins will be sent to the Gate.io wallet and you can start trading UMA.
Step 3 – Explore your trading options
Gate.io offers a variety of ways through which cryptocurrencies can be obtained. Each of these can be explored individually depending on your trading needs and objectives.
To start trading UMA, select the option from the “Trade” Menu. Enter “UMA” into the search bar to see which trading options are available.
For spot trading, for instance and as an example, select UMA_USDT. Once you have selected, you will be directed to the exchange page which corresponds to the cryptocurrency pair UMA/USDT.
Here, you will see that you have the option to buy or sell UMA either as a limit order, grid trading, or as a time condition. The most common trading method is that of limit trading and thus it will be used for this guide.
Step 4 – Buy UMA through via Limit Order
To buy UMA and create a limit order for it, you can enter the amount of UMA you want to purchase, and the price you want to buy it at in USDT. This tool will tell you what the overall cost is in USDT, or any other chosen counter-currency, which will be deducted from your wallet once the order has been executed.
Step 5 – Sell UMA through via Limit Order
To sell UMA, find the panel under the chart and create a limit order for USDT according to your own preferences. Note that with a peg to USD, UMA that you exchange for USDT will hold the flat value that it has despite market conditions in the cryptocurrency market.
Step 6 – Withdraw funds
To withdraw funds, you will use the same page in Gate.io which was used to make a deposit.
Click on the deposit/withdrawal option on your Account dropdown and find the wallet of the currency that you wish to withdraw. You can do this easily by using the search bar provided.
Instead of a deposit address being generated, you will do this on the exchange, or the wallet being used as the destination for withdrawal of funds from Gate.io. Paste the address of the receiving wallet in the field provided and provide your Gate.io fund password, email code, and TOTP before selecting “Submit Request”.
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FAQ
When was UMA first launched?
UMA was launched in 2018.
Who founded UMA?
Hart Lambur and Allison Lu founded UMA.
What is “ICO”?
It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.
When was UMA’s ICO and how much did it raise?
UMA’s ICO was in 2018 and during this, 2 million tokens were sold, with 48.5 million reserved for the project founders, 35 million put aside as rewards for developers, and 14.5 million designated for any future sales.
Is UMA legit?
Yes, UMA is legit.
What is UMA’s total supply?
There is a total supply of 101 131 297 UMA
What is the purpose of UMA?
To make it possible for anyone in the world to gain access to financial risk.
On which blockchain is UMA based?
UMA is based on the Ethereum blockchain.
Does UMA work with smart contracts?
Yes, UMA uses smart contracts.
Does UMA have potential to become more valuable?
Yes, UMA has limitless potential and as it grows and expands, it is set to become more valuable.
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