From September 8th onwards COINBASE has started to be traded in this platform as a part of Coinbase's strategy to support new digital assets.
What is UMA??
In other words it is the "Universal Market Asset" and was developed in Risk Labs which is the UMA parent company.
According to Coinbase "is an Ethereum token that describes itself as “an open-source protocol that allows developers to design and create their own financial contracts and synthetic assets.”
But what is a synthetic asset?
Well, regarding this, Coinbase explains that it is "synthetic assets are tokens that are digital representations of derivatives". Meaning that these financial contracts that are tokenized repesentation of a financial position.
Which are the advantages?
- No need of Permission creation: Blockchains like Ethereum enables anyone to build synthetic asset systems
- Easy access and transferability: Easy to transfer and tradeable
- Global pools of liquidity: available to everyone around the globe
- No central party risk: Really descentralized, no privileges
Conclusion
The UMA Protocol "is a decentralized specification to enable the trustless transfer of financial risk for any underlying asset to any individual around the world"
Which allows The protocol uses novel systems and economic incentives to transparently and
efficiently maintain collateral and accurately settle transactions while giving users complete control over the terms of their economic exposure.
