UMAUSD is the token for the UMA project. The company is one of the developers of a protocol to create synthetic assets, which allows users to write self-executing smart contracts with economic guarantees. UMA was developed to support financial innovations made possible by open public blockchains such as Ethereum. UMA defines an open-source protocol that allows any two counterparties to develop and create their own financial contracts. However, unlike traditional derivatives, UMA contracts are insured only through economic stimuli, which makes them self-sufficient and open to the public.
The project's investors are Placeholder, BainCapital Venture, Blockchain Capital, Two Sigma Ventures, Box Group, Coinbase Venture, Dragonfly Capital Partners and Fintech Collective.
Token owners have two main responsibilities:
- Voting for price queries on financial contracts using DVM
- Managing the UMA ecosystem by voting for parameter changes and approving system updates.
Voters who participate and vote correctly receive inflationary remuneration (currently, it's 0.05% of the total number of network tokens) that is proportionally distributed by rates.
Opportunities for traders
The UMA token started trading in May 2020. In just a short period, the token is now in the top 40 tokens, with an over $550 million market capitalisation. For the period from 01.06.2020 to 01.09.2020, the UMAUSD price increased by 15.9 times.
At the same time, the token shows a lot of movement during intraday trading hours. Its average intraday volatility is 25%.
How to buy and sell UMAUSD
You can buy and sell UMAUSD on specialised cryptocurrency exchanges. To trade it, it's better to use a broker and trading platforms. Such platforms include MetaTrader 4 or Libertex, where trades are easier to make, leverage can be used, and you can even earn if the cryptocurrency's value goes down.