Umee is the most programmable, secure lending algorithm built as a blockchain. As a base-level blockchain, applications and money lego primitives can be built on top of Umee to access leverage, liquidity, and debt instruments across the chain. The Umee blockchain facilitates interoperability between the Cosmos ecosystem, Ethereum, side-chain architectures, second-tier scaling solutions, stacking, and alternative underlying protocols.

Project vision Umee is the first borrowing and lending platform to offer universal cross-chain DeFi functionality, combining the strengths of blockchain architecture with the fundamentals of traditional debt markets. Umee will recreate the $200 trillion global debt capital markets using open source, crypto primitives and web3 technology, building a universal yield curve and creating the foundation for modern monetary policy that is unified, transparent and decentralized on a global scale.

The transformation of global finance Umee's platform is an engine for long-term development and growth that will be the linchpin for the transformation of global finance as traditional debt markets are fundamentally transformed into Web3.

The $200 trillion global debt market is the largest financial market in the world. Umee's web3 technology is capable of supporting the debt market without the risks, costs and inefficiencies associated with centralized intermediaries. While web3 is currently focused on the short term, the bonds will help shift the focus towards long-term development and growth. Scalability through Cosmos' CosmWasm and overall security to accommodate the full volume of global debt markets; Interoperability and cross-chain accounts through IBC to eliminate isolation between ecosystems to maximize liquidity in a universal marketplace; Privacy through ZK-based technologies that give participants full control over their information transmitted over the network and enable confidential transactions that are currently limited by centralized resources.

Token Utility

The Umee blockchain utilizes a network of validators that ensure the consensus of the Tendermint BFT in the protocol. Tokens are associated with validators that stake on them to provide Proof of Stake consensus in the network. Validators come from an open ecosystem of participants and infrastructure providers. Additionally, users can delegate their tokens to validators to participate in the main consensus mechanism. This helps to ensure the decentralization of the Umee network.

Validator infrastructure providers receive UMEE tokens as a fee for using the network. Just as ETH is used as a gas payment for transactions on the Ethereum blockchain, UMEE is used as a gas payment for transactions on the Umee blockchain. Validators are rewarded in UMEE tokens for finding blocks, similar to how proprietary blockchain protocols handle transaction fees.

The UMEE token is also used as a protocol management token, facilitating the management of the Umee blockchain. A pinned UMEE token can be used to vote on protocol parameters and updates in order to improve the functionality of the blockchain infrastructure. The UMEE token will also determine the parameters of DeFi applications, community grants, and future developments.

Token format

Different blockchains usually use different versions of tokens. Most tokens can be used on different blockchains if they are converted to the correct format. It is important to know what type of tokens you own before interacting with any web3 application.

Native UMEE tokens

The main purpose of the native UMEE token is to participate in the PoS consensus mechanism to help secure the Umee blockchain and earn PoS staking revenue, pay gas fees on the Umee blockchain to execute DeFi transactions between Umee chains, and be able to vote and participate in protocol governance decisions.

ERC-20 UMEE tokens

The main purpose of the ERC-20 UMEE token is to create a convenient interface for Umee to connect to the DeFi legacy on Ethereum and allow people to seamlessly access the UMEE token as an ERC-20 token, as well as store or trade it on centralized exchanges.

What is UDX? UDX is a platform funded by the Umee Foundation and Umee Ecosystem Fund that acts as the official institutional lending organization of the Umee blockchain. UDX aims to facilitate and accelerate Umee's mission to bring debt capital markets to cryptocurrencies by offering term loans to vetted borrowers.

UDX will provide term loans to reputable DeFi protocols and crypto-centric institutions such as validator service providers, custodians, funds, and developers to facilitate sustainable growth and M&A for longer terms. Customized loans will provide borrowers with choice and lenders with unique profit opportunities. As a loan underwriter, UDX can generate revenue through loan origination fees, over-the-counter trading and new fee structures. All revenue generated by UDX will be used to buy and burn UMEE tokens as a source of accumulating UMEE token value.

Why choose UDX? The modern crypto ecosystem has countless identical platforms and products in different chains. In the coming years, the crypto ecosystem is expected to grow and consolidate significantly as market favorites begin to absorb smaller competitors, and more mergers and joint partnerships are formed.

UDX can be used to finance such activities by offering short- and medium-term debt financing without the need to rely on a centralized third-party custodian. UDX will bring maturity to the cryptocurrency lending markets by allowing mature borrowers to connect with trusted lenders and investors. UDX is poised to fund the next generation of DeFi, a highly profitable chain bond market.

Term loans While today's DeFi loans are mainly used by speculators for short-term borrowing, UDX will allow for term loans to be extended to a wide range of reliable borrowers. Loan terms will range from 1 to 5 years, making them more attractive to builders looking for stable capital and investors seeking to diversify their risk/return profiles.

The terms of the loans offered by UDX can be customized to ensure optimal conditions for lenders and borrowers. Interest payments can be made in the form of an underlying asset or a protocol token, i.e. the borrower can place protocol tokens as collateral for a loan in stablecoins, and interest payments can be made in the form of confirmation of the remuneration from the blockchain stake that is the subject of the pledge.

Conclusion

Through its borrowing and lending platform, Umee provides users with the ability to scale through Cosmos' CosmWasm and the overall security to host the full volume of global debt markets that give participants full control over their information transmitted over the network and allow for confidential transactions that are currently limited to centralized resources. The UDX platform provides term loans to reputable DeFi protocols and crypto-oriented institutions, and can also be used to finance such activities. It allows you to provide term loans to a wide range of reliable borrowers.