The Umee Blockchain: The Cross Chain DeFi Hub
Umee is a cross chain DeFi hub that interconnects between blockchains. As a base layer DeFi protocol, a wide ecosystem of application layer protocols can be built on top of Umee. The Umee Blockchain facilitates instant interoperability using the Tendermint Proof of Stake consensus protocol with the Cosmos ecosystem, Ethereum network, side chain architectures, layer two scaling solutions, and alternative base layer protocols.
The native UMEE token is a Proof of Stake asset that can exist as a Cosmos SDK token and an ERC-20 token on Ethereum.
Key Highlights
Base Layer DeFi HubThe Umee Blockchain is built on the Cosmos SDK and Ethereum Virtual Machine for interconnecting between DeFi and lending specific use cases. Umee offers a flexible mix of speed and efficiency for blockchain transactions using a fast finality consensus protocol based on Tendermint Proof of Stake.
Proof of Stake Meets Global Debt MarketsThe initial product built on top of Umee will be cross chain borrowing and lending as well as the building blocks for onboarding global debt into DeFi. By creating tools for allowing new leverage components and interest rates, Umee is onboarding new markets and ecosystems into crypto and becoming the leverage facility for the blockchain world.
Cross Chain InteroperabilityThe vision of Umee is to spearhead the development of a multi-chain world and serve as a cornerstone to the overall blockchain ecosystem. Umee uses IBC (Inter-Blockchain Communication) which is the flagship Cosmos protocol for cross chain communication.
Token Use Cases
Validator Infrastructure
The Umee Blockchain is built on a network of validators that contribute Tendermint BFT consensus to the protocol. Tokens are bonded to validators that stake 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 Proof Of Stake Consensus
Network fees will be earned in the form of UMEE tokens by validator infrastructure providers. Similar to how 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 earn block rewards in the form of UMEE similar to how transaction fees are processed in native blockchain protocols.
Protocol Governance
The native UMEE token is also a protocol governance token used to facilitate on-chain governance for the Umee Blockchain. The governance token can be used to vote on configurations of the protocol as well as network upgrades for improving functionality of the blockchain infrastructure. The UMEE governance token will additionally govern DeFi parameters of applications that sit on top of the Umee base layer DeFi protocol.
Technology
Universal Debt Facility
Umee’s innovation is encapsulated through its design of a Universal Debt facility, an advanced base layer protocol built using the Cosmos SDK that allows developers to design, build, and deploy their own customized debt instruments. The Umee architecture incorporates a modular and extensible design that allows future iterations of sovereign loan pools and new DeFi Debt Markets. These tools are experimented and iterated towards allowing more optimal DeFi interfaces across protocols.
Atomic Asset Coordination Protocol
Umee realizes its cross chain debt functionality through innovation on its DeFi positions that relay a user’s position universally across platforms and blockchains. Instead of moving crypto assets directly, Umee iterates on its design of uTokens and allows users to reliably lend and borrow natively on a blockchain without introducing any additional base layer dependencies.
meToken for Collateralized Liquid Staking Positions
While staking is key to any Proof of Stake blockchain, Umee takes the mechanism one step further with the meToken. The meTokens represent staked positions participating in a Proof of Stake consensus mechanism. These can be used as collateral by Umee in order to take a loan position on any other chain. The meToken allows a seamless transition from staking to borrowing while allowing Proof of Stake yield to concurrently pay down interest payments from borrowing. This mechanism allows the protocol to achieve maximum capital efficiency and yield generation while contributing to the Proof of Stake network’s security.
