Umoja Protocol: The World’s First Smart Money Protocol
Imagine a world where your money does more for you with less effort and you don’t have to be a gigabrain.
…a world where you don’t have to only rely on meme coins as the ONLY way to get real yields and real gains.
What if you knew how to leverage the same tools as ‘Smart Money’ and make the same moves as them?
Believe it or not, smart money players like hedge funds and legacy financial institutions, are more like tech and research companies than they are fancy suits on Wall Street.
They invest millions of dollars on quantitative engineers to come up with the best ways to minimise losses and maximise gains. Sometimes, at our expenses.
…but what if we, the degens, could move like them? What if any one of us can be smart money? What if we had a tool that allowed us to behave in the way that smart money behaves?
Enter Umoja Protocol, the highly anticipated future unicorn and upcoming project launch on Ignition.
‘Umoja’ means unity in Swahili. It means to strive for and maintain unity in community; the essential foundation.
As crypto’s asset factory, Umoja Protocol allows the democratisation of wealth creation, once and for all. Umoja creates diverse assets using tokenized trading strategies that yield better returns and provide greater protection than anywhere else in crypto– especially when everyone is betting on everything that moves, a smart approach on your money is crucial.
We’ve covered everything for you; included is the following information:
- An Umoja Protocol Overview
- Token Details
- What are Synths?
- Open Sourcing Wealth Creation
- Revenue Model
An Umoja Protocol Overview
Umoja seeks to usher in the single greatest democratisation of wealth-creating tools in human history, by making automated asset management not only possible, but as simple as buying a token.
Umoja leverages smart money building blocks called Synths. These are risk-minimising, primitive asset management strategies, that can be used either directly to help automate a user’s financial strategy, or indirectly to quickly create novel financial products, such as:
- high-yield synthetic stablecoins
- hedged assets with limited risk
- Boosted assets with enhanced potential returns, and
- Specialised DeFi hedges, including Uniswap LP hedges.
Launch Features
Umoja is positioned to create many different types of Synths. Currently, synthetic options are live in beta. Right now users can create a:
Synthetic calls (BOOST+) and/or Synthetic puts (HEDGE)
Synth Options mimic traditional crypto options but are built on a foundation of 20x leveraged perpetual futures trading. This means they can offer the same benefits as traditional options, like the chance to profit from price movements, while reducing risks associated with dealing with other parties, making trading more liquid (easier to buy and sell), affordable, and flexible.
Synth Options have:
- Built in liquidation protection
- 20x leverage for more protective exposure
- 30x+ more liquidity than traditional crypto options
- Exponentially more strike and term flexibility than traditional crypto options
- Lower counterparty risk and avg. cost than traditional crypto options
Token Details:
Inflation Schedule: You may find here (iterating until TGE)
Max Token Supply. 1,000,000,000
Public Token Distribution: 50M Token Airdrop + 150M in Staking Rewards
Token Native Chain: Arbitrum
Initially Supported Networks: Arbitrum & Avalanche
Governance: Vetokenomics by staking UMJA w/ either uUSD (Staked USDC in Insurance Pool) in an 80/20 ratio
Insurance: Staking USDC to the Insurance Pool defend protocol from Black Swan and smart contract exploit events.
Discounted Hedging: Holding UMJA will reduce the hedging premium for hedgers.
What are Synths?
Synths are tokenised asset management strategies that can be used directly and composed into new assets that automatically minimise losses and maximise yields.
Synths, or ‘synthetics’, are specialised tokens that replicate the functions of traditional financial instruments and DeFi strategies. They do this by participating in derivatives trading on centralised exchanges and carrying out operations within well-known DeFi protocols.
Umoja aims to assemble a versatile library of asset management strategies, designed to mitigate market risks and enhance yields, that can be accessed directly through the dApp or indirectly via assets embedded with a Synth.
Synths are backed by user funds, ensuring they’re only impacted by the performance of the specific Synths they engage with, based on their own collateral.
Open Sourcing Wealth Creation
Umoja provides flexible and customisable building blocks for smart money, giving anyone the ability to enhance or create new financial products that are yield focused and risk protected without dependence on the existing banking system.
Utilising recent developments in “off-exchange” MPC secured custody accounts to access centralised liquidity, while retaining the core value proposition of transparency and on-chain custody, they are able to scale Synths into the billions. they will be the building blocks of the future of money and asset management for both decentralised and centralised crypto ecosystems.
Finally, the tools for wealth creation are open source and available to all.
Revenue Model
You may find a visual representation of Umoja’s revenue flows below:
Additionally, you may find a description of Umoja’s revenue model below:
Synth Fees
Umoja’s revenue model is reliant on charging a fee for minting each Synth (50% of which is redirected to the Insurance Pool) and generating yield on excess user collateral. 80% of Premium Fee revenues are re-distributed to Stakers and LPs. 20% of Premium Fee revenues are deposited into the protocol’s Treasury. 60% of stakeholder re-distributed revenues go to Stakers, whereas the other 40% of re-distributed revenues go to LPs.
Insurance Fee
50% of Synth Fees go to the Insurance Pool to further protect the protocol from a black swan event. All Insurance Fee revenues are deposited into the Insurance Pool to further protect the protocol from a Black Swan event.
Investment Pool of Excess Collateral Revenue
Umoja invests 40% of excess collateral into other protocols, such as Yearn, to generate passive yield. 30% of the investment revenue is deposited into the protocol’s Treasury, 50% of investment revenues is deposited into the protocol’s Insurance Pool, and the remaining 20% is re-distributed to veUMJA holders.
veUMJA Stakers (Token Rewards)
veUMJA holders who have staked their UMJA tokens with uUSD in an 80/20 ratio will earn a proportion of protocol investment revenue and UMJA token rewards in proportion to the value and time they have staked. 50 Million UMJA from the Treasury will be reserved for veUMJA staking rewards (in addition to the 20% of investment revenue earned by the Investment Pool).
Early un-Stake Fee
If a staker withdraws their stake from the Governance Pool early, they will face a 1% penalty fee, which will be distributed to the protocol’s treasury. 100% of the 1% early un-stake fee goes to the protocol treasury.
Conclusion
Umoja is the world’s first smart money protocol. They empower anyone to create ‘smart money’ by embedding automated investment strategies into digital assets, enabling tokens to trade themselves, protect against market volatility, and optimise yields. Now your money can work for you — literally.
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