Context: This article was originally published on 2/13/23. We launched our Beta V1 which allowed users to leverage synthetic puts to hedge their crypto. We’re currently in the process of launching Beta V2 which leverages synthetic call options.
Beta is Live
TL;DR- Remember those days when hedging sounded like something only the “smart money” could pull off? Well, those days are gone. With Umoja, it's like your favorite DEX got a superpower. You can hedge your crypto effortlessly, no technical experience needed.
We’ve been building for a while. Umoja initially started as an emerging market microfinance solution, but a critical issue emerged: fluctuating currency values and USD loans. These presented challenges for repayment which could only be solved through the traditional method of hedging the local currency through a bank. But this is usually:
- costly- requires high liquidity and- time-consuming.
Recognizing the widespread impact of this problem, we realized we shouldn’t be leaning into lending– we should be expanding into hedging. That’s where the pain points really were.
So, our goal became to democratize hedging solutions, and since there was no other place where traders could simply hedge, we built it.
Umoja is a hedging tool for degens, pro traders, and retail traders– it’s for everybody.
Background
To bring Umoja to life, our team combines expertise from diverse backgrounds, including top-tier institutions and leading companies in the tech and finance sectors such as Credit Suisse, Goldman Sachs, ConsenSyS, a16z, Celo, and Valora. With a clear vision of democratizing hedging for the cryptocurrency market, Umoja has been meticulously crafted by individuals who have experienced firsthand the volatility and uncertainties inherent in crypto trading.
We’ve also raised over $2M and got the backing of the big guns like Coinbase Ventures, Mercy Corps Ventures, 500 Global, Blockchain Founders Fund, Quantstamp, Orange DAO, Avalanche Blizzard and key opinion leaders in the space like Ivan On Tech.
A Paradigm Shift in DeFi Risk Management
The DeFi landscape is on the brink of a significant transformation with the introduction of Umoja, a novel protocol designed to redefine the way we approach risk and yield in DeFi.
For enthusiasts and veterans alike, who have navigated the yields of staking and the intricacies of yield farming, Umoja presents an unprecedented opportunity to engage with DeFi tools while ensuring robust protection against market volatility.
DeFi's New Risk Mitigator
At its core, Umoja introduces a foundational layer to DeFi's existing ecosystem, providing a strategic approach to risk management without compromising on yield potential. This innovative protocol is designed to serve as a critical tool in every DeFi user's arsenal, ensuring that engagement in yield-bearing activities does not leave one's assets unnecessarily exposed to risk.
The Dawn of Hedged Assets
Umoja heralds the beginning of an era where assets are not only capable of generating yield but are also hedged against the market's inherent volatility. This dual advantage means that DeFi participants can now enjoy the benefits of yield farming and staking with an added layer of security, effectively safeguarding their principal investment against downturns. It's a leap towards a more secure, yield-focused DeFi ecosystem that doesn't compromise on asset protection.
Zero-Loss Staking: A Game-Changer
Perhaps the most compelling feature Umoja offers is zero-loss staking. This innovative approach ensures that while your assets are staked for yield, the principal amount is protected from any potential loss. This means that participants in the DeFi space can now stake assets like ETH, BTC, and AVAX, secure in the knowledge that their notional investment is shielded, all while accruing yield. It's a powerful proposition that combines the best of both worlds: yield generation and market protection.
We're here to show you that keeping your crypto investments safe doesn't have to be complicated or a hassle.
Umoja makes hedging as simple as wearing a seatbelt in the rollercoaster ride of the crypto market. And we believe this shouldn’t just be available for top tier financial institutions. It shouldn't be a luxury or a brain-twister. Umoja is all about giving you that safety net so a bad day in the market won't throw you off track.
Making Hedging a Breeze
Umoja's beta version introduces the concept of CeFi Dynamic Term Loss Coverage for BTC, ETH, and AVAX. Here’s how simple we’ve made it:
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Choose your asset.
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Select how much you want to protect.
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Select up until when you want your protection.
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Select the price you want your protection to activate.
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Put down 10% refundable collateral and pay protocol fee
*we plan to transition from CeFi to DeFi in the release of our Beta V2.
Umoja's introduction is more than just a new DeFi tool; it represents a shift towards a more sustainable and secure approach to how we are able to interact with DeFi protocols. By harmonizing yield pursuits with risk mitigation, we're opening up a world of possibilities for investors at all levels.
Get started here.
Rewarding Our Community: Airdrops & More
At Umoja, we're all about supporting investors, traders, degens, and the other brave souls willing to embrace something new for their benefit.
We get it—hedging might not be second nature to everyone, especially the degens out there. But here's the thing: everyone needs to hedge, even if it's just a small portion of their total portfolio. So you might as well hedge with the best team who’s been building this for a long time. (:
To celebrate our community and encourage engagement, those who join us, interact with our community, and take a moment to hedge ETH, BTC, or AVAX on Umoja will be eligible for our upcoming airdrop. It's our way of saying thank you for giving Umoja a shot and for taking steps to protect your investments. Let's make hedging a part of your strategy, together.
Get Started:
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