[UMA] MIP6 Collateral Onboarding Application for UMA Token
- Who is the interested party for this collateral application?
- Provide a brief high-level overview of the project, with a focus on the applying collateral token.
UMA is a protocol that allows the issuance of “priceless” synthetic assets. Instead of relying on a traditional price oracle, the system allows for a bonded appeals process to dispute improper liquidations. UMA token holders can earn inflation rewards by voting on liquidation disputes and settlement prices as part of the data verification mechanism. The UMA token also controls overall governance of the protocol.
- Provide a brief history of the project.
The original UMA whitepaper was released in December 2018 after the team closed a funding round led by Placeholder VC. A supplemental white paper covering the UMA data verification mechanism was released in April 2020, with the UMA token going live at the end of the month via a Uniswap listing. Since going live, the protocol has voted on several UMIP governance proposals. The initial yCOMP and yETHBTC synthetic assets have recently been settled successfully, and UMA recently started a liquidity incentive program for their new yUSD synth on the Balancer exchange.
- Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.
Voting portal: https://vote.umaproject.org/
Source Code: https://github.com/umaprotocol
UMA token contract: https://etherscan.io/token/0x04Fa0d235C4abf4BcF4787aF4CF447DE572eF828
- Link any available audits of the project. Both procedural and smart contract focused audits.
Audit report: https://blog.openzeppelin.com/uma-audit-phase-1/
- Link to any active communities relating to your project.
Medium blog: https://medium.com/uma-project
- How is the applying collateral type currently used?
UMA tokens can be used to vote on liquidation disputes, contract settlement prices and governance proposals.
- Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
UMA is a decentralized token.
- Where does exchange for the asset occur?
UMA is traded primarily on decentralized exchanges. The token was launched on Uniswap v1, and recently the project team’s liquidity was migrated to Uniswap v2. There is also a UMA pool on Balancer, as well as trading on a few less prominent centralized exchanges.
- (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.
I am not aware of any publicly available legal opinions addressing the project or token’s regulatory standing.
- (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.
None as far as I’m aware.
- (Optional) List any possible oracle data sources for the proposed Collateral type.
There are a few centralized exchanges offering trading. Otherwise most liquidity is on Uniswap v2 and Balancer.
- (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.
Disclosure: I hold UMA.