UMA Protocol
About UMA Protocol
The price of UMA Protocol (UMA) is $2.28 today, as of Sep 16 08:18 p.m., with a 24-hour trading volume of $18.52M. Over the last 24 hours, the price has increased by 0.87%. UMA Protocol currently has a circulating supply of 82.51M and a market cap of $188.47M.
UMA is the native cryptocurrency of the UMA protocol (Universal Market Access protocol), a protocol that allows users to create their own synthetic assets – digital tokens that represent and track the price of any real-life asset. These tokenized assets are known as “priceless financial contracts” on the platform.
UMA is an open-source, decentralized finance (DeFi) protocol based on the Ethereum blockchain that is powered by the UMA token.
UMA is an ERC-20 utility token that is mainly responsible for governance and dispute resolution. Governance means that holders of UMA tokens can vote on proposals regarding the protocol’s development. Governance participants are rewarded in UMA for helping make decisions for the network. Secondly, UMA tokens can be used to vote on disputes related to the price of synthetic assets, creating an added layer of security to UMA’s price-tracking oracle.
UMA held an initial DEX offering (IDO) on Uniswap in April 2020 at the price of around $0.26. The Risk Labs Foundation minted around 100 million UMA at its launch and deposited 2 million UMA (2%) into Uniswap for the IDO.
The remaining UMA was distributed as follows:
- Founders, investors and early contributors: 48.5 million UMA (48.5%)
- Developers and network users: 35 million UMA (35%)
- Future token sales: 14.5 million UMA (14.5%)
UMA reached its all-time high of $43.37 in February 2021, marking a 270% jump in three days. The surge came after UMA announced a partnership with YAM Finance for uSTONKS tokens. The uSTONKS token served as a synthetic asset that tracked the top 10 most commented stocks on reddit’s r/wallstreetbets channel, including GameStop (GME), AMC (AMC), Nokia (NOK) and BlackBerry (BB).
Before the 2021 high, UMA peaked in May 2020 at $1.16 at around the same time the protocol experienced difficulties with its voting mechanism. At the time, a bug was discovered that meant votes weren’t being counted. That led to the denial of a number of governance decisions due to lack of participation.