UMA

UMA Price

What is UMA?

UMA is an optimistic oracle (OO) that can record any knowable truth onto a blockchain. It tells smart contracts “things about the world” so contracts and markets asking for that data can be settled. The OO has been called “a human-powered truth machine” because it is flexible enough to handle ambiguity and expands the design space possible in web3. UMA’s OO secures a diverse ecosystem of web3 applications, including cross-chain bridges, insurance protocols, prediction markets, and customizable DAO tooling products.

The Across bridge, Polymarket prediction markets, and Outcome.Finance DAO tools are some of the use cases for the OO.

Why are oracles important?

Oracles are a key part of blockchain infrastructure. They enable communication between the external world and on-chain environments in a trustless manner. Oracles are vital for many parts of the blockchain industry including decentralized finance (DeFi) and web3 applications.

UMA’s optimistic oracle

An optimistic oracle like UMA's uses a “true unless disputed” pattern. Anyone can propose an answer to a data request, and it is accepted as true if it is not disputed during a verification period. The “optimistic” design differs from a price-feed oracle, where prices are streamed on-chain and are instantly final.

This optimistic oracle design concept has been in development since 2014, when Vitalik first published on the matter. There have been several iterations over the years since then, including UMA’s. The optimistic design pattern introduces the opportunity for human intelligence to weigh in. This is important for web3 projects as they require arbitrary data that is not always possible to turn into code.

Today, the OO provides flexible, unique dispute resolution involving any kind of question or data with human input, as compared to price feed oracles, which can only push regular price updates onto chains. The OO can be plugged into any type of DeFi protocol.

A brief history of UMA

UMA was founded in 2018 by Allison Lu and Hart Lambur, two ex Goldman Sachs traders, with the goal of making global markets universally fair, accessible, secure and decentralized. The team drew inspiration from traditional finance derivatives to define an open-source protocol to allow anyone, anywhere, to design and build trustless financial contracts.

How does the UMA platform work?

There are three actors in UMA’s Optimistic Oracle system: the contract requesting the data, the participant offering the data, and a potential disputant, who can dispute data if they disagree.

If a dispute arises, UMA token holders resolve the dispute within 48 hours. If the disputer is right, they get a portion of the proposer's deposit as a reward; if the disputer is wrong, they lose their deposit as a penalty, a portion of which goes to the proposer. Voting in the oracle has three phases: open voting; voting confirmation/reveal; and rewards claim period.

Rewards will compound as they are claimed. Claiming the rewards places the tokens in users’ wallets, making them active voting tokens that will increase the user’s voting power with each successful vote.

UMA’s smart contracts are designed primarily for developers building decentralized applications. However, all UMA token owners can participate in UMA’s optimistic oracle. UMA’s token is built on Ethereum that can be held in wallets like Metamask, Trezor, or Ledger, which must be connected to the UMA DApp to enable voting.

What can you do with a UMA token?

The UMA token has traded on top exchanges for years. The token provides economic guarantees to protocols using UMA’s OO. UMA’s community of token holders provide the human component, as voters, for the OO's final resolution on disputes or queries. Tokens are also used to vote on protocol upgrades and UMA DAO funds allocations. The strength of the token will track with the strength and adoption of the UMA ecosystem as a whole. Active and accurate voters earn a healthy yield for their participation.

How can I get involved?

The UMA community is on Discord. There, you can learn how to vote with your tokens and discuss with other community members how you should vote. You can also contribute as a developer or researcher.

Has UMA been audited?

Yes, all of UMA's oracle contracts have been audited by OpenZeppelin, in addition to the contracts for Across Protocol and Outcome's Optimistic Governor, Optimistic Distributor, and more. All of our audit reports can be found here.

Where can you buy UMA?

UMA tokens can be traded on centralized crypto exchanges. The most popular exchange to buy and trade UMA is HTX, where the most active trading pair UMA/USDT has a trading volume of $1,737,000.33 in the last 24 hours. Other popular options include LBank and Binance.

What is the daily trading volume of UMA (UMA)?

The trading volume of UMA (UMA) is $8,381,105.19 in the last 24 hours, representing a -24.20% decrease from one day ago and signalling a recent fall in market activity. Check out CoinGecko’s list of highest volume cryptocurrencies.

What is the highest and lowest price for UMA (UMA)?

UMA (UMA) reached an all-time high of BTC0.002297 and an all-time low of BTC0.00001105. It’s now trading -97.10% below that peak and 291.00% above its lowest price.

What is the market cap of UMA (UMA)?

Market capitalization of UMA (UMA) is BTC965.9166 and is ranked #478 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of UMA tokens (87 Million tokens are tradable on the market today).

What is the fully diluted valuation of UMA (UMA)?

The fully diluted valuation (FDV) of UMA (UMA) is BTC1,387.3759. This is a statistical representation of the maximum market cap, assuming the maximum number of 120 Million UMA tokens are in circulation today. Depending on how the emission schedule of UMA tokens are designed, it might take multiple years before FDV is realized.

How does the price performance of UMA compare against its peers?

With a price decline of -14.90% in the last 7 days, UMA (UMA) is underperforming the global cryptocurrency market which is down -1.20%, while underperforming when compared to similar Ethereum Ecosystem cryptocurrencies which are up 12.70%.

How to add UMA (UMA) to MetaMask?

Adding UMA (UMA) to MetaMask allows you to view your token holdings, trade on decentralized exchanges, and more. To add them, you’ll need to import UMA as a token. You can copy UMA’s contract address (0x04fa0d235c4abf4bcf4787af4cf447de572ef828) and import it manually, or if you've installed MetaMask's chrome extension, add UMA to MetaMask with one click on CoinGecko.

Add UMA to MetaMask.