Universal Market Access (UMA) is a protocol on Ethereum that acts as an oracle, checking real-world data for use in blockchain applications. Oracles are essential in connecting off-chain information (not on the blockchain) to on-chain smart contracts, crucial for various tasks like decentralized finance (DeFi) and governance of decentralized organizations (DAOs).
UMA provides oracle services to decentralized apps (dapps) using smart contracts to create an "Optimistic Oracle." This model uses economic incentives to verify data for on-chain use and relies on the UMA utility token for security and platform governance.
UMA was founded in 2018 by Hart Lambur and Allison Lu. Initially focused on synthetic assets, it shifted its focus to the Data Verification Mechanism and oracle services in 2020.
UMA's Optimistic Oracle works through a process involving proposers, challengers, voting, and final judgment. Users can participate as asserters or disputers, and UMA token holders vote on the validity of data.
UMA Protocol finds applications in governance validation, prediction markets, tokenization of real-world assets, and cross-chain data verification.
The UMA token has dual roles, allowing holders to vote on proposals and participate in securing the Optimistic Oracle through decentralized voting. UMA introduced token staking in early 2023 for additional incentives.
The initial UMA token supply was 100 million, with allocations for founders, investors, developers, and future sales. Tokenomics evolved with network participation, and stakers receive newly minted UMA tokens at a fixed emission rate.
UMA serves as an optimistic oracle, bringing real-world data to blockchain networks securely. The UMA token supports platform governance and secures the oracle through decentralized voting.
Source : Rayn Research / Jan 9, 2024