UMEE Review

What is UMEE?

UMEE is a decentralized finance hub built on Cosmos, which supports a suite of composable debt primitives. UMEE facilitates interoperability between the Cosmos ecosystem, Ethereum network, side chain architectures, layer two scaling solutions, and alternative base layer protocols.

UMEE history and team

The UMEE Blockchain was launched in 2021 implementing the idea of creating cross chain DeFi markets, where assets on one blockchain could be used to interact with assets on another blockchain.

UMEE is based in the US. The Founder and CEO of UMEE is Brent Xu. He has great experience of working in the blockchain industry: from 2015 to 2016 Brent Xu worked for Ethereum as Ecosystem Contributor and then joined ConSys as an early employee. In March 2019 Brent began working for Tendermint, where nowadays he is a Strategic Advisor. Besides that and being CEO at Umee, he is also a partner at Argonautic Ventures.

The Head of Product at Umee is Brandon Comer. He studied Computer Science at California Lutheran University and Business Administration at University of Southern California. Before joining Umee in August 2021, Brandon worked in the product management industry at GlobalVision Systems, First Entertainment Credit Union and Amazon.

UMEE’s Roadmap

Gradually over the course of 2021 UMEE deployed its network, launched Ethereum Lending and Borrowing application and Alpha Mainnet, conducted Security Audit. In February 2022 UMEE Base Functionality was deployed on Mainnet. At that time the platform also launched its Token. From April 2022 UMEE has been working on integrating Polygon, Arbitrum, Optimism, Solana and Binance Smart Chain into its Lending and Borrowing Applications and implementing protocol developments on top of Umee (meTokens, staking curves, defi debt protocols).

UMEE token

The UMEE Blockchain has its native Proof of Stake governance token UMEE. Moreover, it is used to pay computation fees and reward validators. Total amount of tokens was 10 billions and was distributed as follows:

Oracles on UMEE Blockchain

In general, oracles are bridges between blockchain and the real world. They provide smart contracts with essential external information.

Decentralized oracle networks (DONs) combine on-chain code and off-chain infrastructure in smart contracts in dApps, which work with real-world events.

On January 4, 2022, the UMEE Blockchain announced its integration with Chainlink oracles. With it, UMEE provides its users with secure and reliable ATOM price data, which proves that DeFi function is working according to aggregated market data. In Chainlink decentralized oracle network various independent nodes aggregate prices into one resistant market price.

On July 7, 2022, UMEE announced launching the first price oracle service for Cosmos’ IBC protocol, Orion. It is provided by UMEE’s validators and acts as an intermediary between smart contracts and centralized exchanges, for example, Coinbase and Binance, and Osmosis decentralized exchange.. Each validator independently passes price data along about every 30 seconds.

The UMEE Blockchain and other blockchains built on Cosmos

In this article we compare UMEE with other Cosmos-based platforms with the same functions, such as SiennaLend and Kava Lend.

Firstly, SiennaLend and Kava Lend have more markets for lending and borrowing, however Kava doesn’t have USDT, USDC, DAI and ETH markets.

Secondly, in general Borrow APY on UMEE is lower than on Sienna and Kava.

Thirdly, in comparison to Sienna, the liquidation threshold on Umee differs depending on the asset.

UMEE’s Functionality

At the moment of writing users can stake, transfer, lend and borrow tokens on UMEE via its application.

Staking on UMEE

UMEE holders can earn more tokens by delegating their assets to other validators to help secure the Umee blockchain in return for a proportional share of block rewards. Moreover, staking allows users to vote on governance proposals.

Supplying on UMEE

Users on UMEE can supply their tokens in order to get lending yield. Supplied assets can be used as a collateral for cross chain borrowing.

Borrowing on UMEE

Besides having supplied tokens on UMEE, to be able to borrow tokens users must have a compatible wallet and a UMEE token balance to pay for fees on the network.

So, that is all you need to know about UMEE, if you have any questions — feel free to ask us.

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