TL;DR: The UMA project token ($UMA) will be listed on Uniswap at approximately 15:00 UTC on Wednesday, April 29th.
UMA builds infrastructure for “priceless” financial contracts: DeFi contracts that minimize oracle usage, avoiding many of the security and scalability issues that have plagued decentralized finance. The first contracts built with UMA are priceless synthetic tokens: ERC20 tokens that can track anything while minimizing the need for on-chain price data.
The UMA project token powers the system in two ways:
- Governance: UMA token holders govern what types of contracts can access the system, which asset types are supported, and key system parameters and upgrades.
- Price requests: the priceless methodology minimizes on-chain price requests but doesn’t eliminate them — when contract interactions are disputed, UMA token holders fulfill price requests via the Data Verification Mechanism, or DVM.
UMA tokens enable the holder to participate in community governance and resolve contract disputes through the DVM. The tokens are not an investment opportunity.
The DVM, governance system, and UMA project token have been deployed to mainnet and can be found here.
The UMA token will deposited into a Uniswap liquidity pool at approximately 15:00 UTC on Wednesday, April 29th. At that time, the Risk Labs Foundation will deposit 2mm UMA tokens and ~$535k of ETH into a newly created liquidity pool. This represents an initial listing price of ~$0.26/UMA, which implies a fully diluted market capitalization of ~$26.67mm for the UMA token network. This is the same valuation used in our initial seed investment.
Where can I learn more about UMA?
How will tokens be distributed in the future?
The Risk Labs Foundation initially created 100mm UMA tokens. The Foundation will deposit 2mm UMA tokens into the Uniswap market, as outlined above. 35mm UMA tokens will be distributed to developers and users of the UMA network. The mechanics for this distribution have not been finalized and will be put forward to the community for discussion and approval. An additional 14.5mm UMA tokens will be reserved for future token sales.
Approximately 48.5mm UMA tokens are held by Risk Labs’s founders, early contributors, and investors. These tokens are transfer-restricted until 2021, and all individual token grants are subject to a 4-year vesting schedule.
The UMA network pays an inflationary reward to token holders that participate in governance and respond accurately to price requests. This reward is not paid to token holders that do not participate, penalizing inactive participants. The Foundation has pledged to not vote with any of the tokens it controls and will therefore forfeit all inflationary rewards.
UMA token ownership is reflected here.
Where can I learn more about priceless contracts?
Has UMA’s code base been audited?
The contract code was recently audited by OpenZeppelin and no critical vulnerabilities were found. The final report is currently being drafted and will be released here prior to April 29th.
What’s next for UMA?
The first synthetic tokens built using UMA’s priceless framework will be available on mainnet next month. More details will be announced soon.
Legal Note: UMA tokens are not investments or investment contracts, nor should they be construed as such. Rather, UMA protocol tokens are a means of participating in a community-owned, -operated and -governed network protocol. Because the success of the protocol described in this post depends on the efforts of a disparate group of actors, the products and services described herein involve substantial risk. Materials published by Risk Labs do not constitute the provision of advisory services regarding investment, tax, legal, financial, accounting, consulting or any other related services, nor are they a recommendation being provided to buy, sell or purchase any product or service. Further, materials published by Risk Labs reflect the information available as of the time of publishing and are subject to change at any time without notice. Risk Labs will not be liable for any direct or consequential loss arising out of the use of this material or its contents.