Modified Crypto Update March 25/26th 2021

Modified News by Slightly Modified


Create and manage derivatives on Ethereum using Universal Market Access UMA

Coinbase Rewards

Wow a lot has happened in the Crypto world and the global world in general but to start let’s just go over a newly introduced (To me) Coin called UMA – Univeral Market Access. Coinbase rewards has added it to there earn section, YAY thanks CB I like free stuff, especially with the transaction fees. eeek. I have been thinking about moving my portfolio away from Coinbase. I have been looking at and TDAmeritrade.

What is UMA?

The UMA protocol provides infrastructure for developers to create and manage assets/derivites and other decentralized products on the Ethereum network.

NOTES: A UMA derivative tracks the price of another asset. Derivitaves are typically only availble to institutions, however with UMA derivitatives that create the ecosystem are available to the public and it is what builds the UMA network.

Since this is working on the Ethereum network I am going to guess this is only helping Ethereum and I cannot wait for ETH 2.0. : ] How much they will work together and how it will look after the version update. I don’t know please find that research and come back and let me know.

What Assets are Available on The UMA Protocol?

They use a category asset called/known as Synthetic Assets

“The term “synthetic asset” refers to a mix of assets that have the same value as another asset. Traditionally, synthetics combine various derivative products — options, futures or swaps — that simulate an underlying asset — stocks, bonds, commodities, indexes, currencies or interest rates.Cointelegraph

From the sounds of it in this video and the cited above, I think as a developer I could have a Synthetic Asset for GOLD and by using this termed Derivitatives. Sounds bloody awesome! Developers are even using this to track the gas prices of the Ethereum Network, how cool is that? I see this going places!

As with other Cryptocurrencies it is

  • Decentralized
  • Permissionless
  • Easy to Transfer

How Does UMA Work?

“Investors can obtain derivatives by locking an asset into an UMA smart contract. The value of the collateral is monitored by liquidators, who are in turn monitored by disputers.”Coinbase

You lock in an asset in a smart contract on the UMA protocol used as the investors collateral. In return you receive tokens that are designed to track the value of the locked in collateral asset. Investors can then trade on these tokens and create or add on to their portfolio, that the investor may not typically have access to. 

How does it know the values of the assets? This question is known as the Oracle Problem most networks check the value every five seconds or so which causes congestion on the server and network. To avoid this network congestion UMA Investors are responsible for maintaining the value offset gains and losses on  the UMA protocol. Oh man i don’t see many mainstream users being able to maintain this correctly as most the public are in credit card debt. I see the need and how it can benefit but to the general public I see a lot of user issues with this protocol we will see I guess but I foresee a lot of issues on one side of the network. Well they have a cool designed system of Liquidators and Disputors to offset the Oracle Problem as well as keep a balance of what I was worried about a few sentences ago. Remember I write this as I watch the videos.

How Can I participate in UMA?

“Anyone who holds UMA tokens can participate in UMA governance and receive more UMA as a reward. Developers can also create new derivatives using any form of data, including non-financial info.” Coinbase

Any investor with UMA tokens can vote on/in the UMA network to help keep the network secure.  You can vote on new features and types of contracts as well as when there is a pricing dispute on an asset and liquidations. If you maintain an honest and accurate voting you are rewarded. ALL decisions are done by governance of the netowrk. You vote on the network and how to make it better and secure and in return you are given UMA tokens. The purpose of the UMA network is to “Enable open financial freedom and innovation, allowing anyone with a smart phone and internet access the ability to work to help build up the UMA network.

Blockchain developers can monitor positions on the network if you correctly identifiy an incorrect contract or asset dispute you get UMA rewards. There  are templates to create dev ENV on the network and analyze these contracts and disputes to be a disputer for the network for accurancy and accountability.

There is a monitor created by a developer that tracks trending crytpo on the popular reddit forum WallStreetBets in which you can get a token that is based off of this contract asset value position. Pretty Cool STUFF!


I am by no means a finance expert or even close to, I am an inspiring Software Developer and Innovative Person. I am just writing blogs as I research and stay up to date with News, Trends, and What my opinion is and that IS ALL! Take what you will I am by no means giving advice. Other than please don’t invest in risky stuff if you aren’t willing to lose that money. 

Good Luck on your Ventures! 

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