Key Trust Assumptions

While the Umoja Protocol attempts to minimize trust assumptions across all areas of the infrastructure, certain trust assumptions need to exist in order to access centralized liquidity, facilitate automated asset management strategies, and enable the scaling of the underlying product.

Major Trust Assumptions

  1. Underlying Synth Strategies are Secure & Risk-Tolerant. Each Synth within the Umoja Protocol embodies a distinct asset management strategy, depending on various third-party sources. These can range from centralized entities like Off-Exchange Settlement Providers and exchanges, to other blockchain protocols. Before integration, each Synth is rigorously vetted, developed, and tested to ensure reliability, including the examination of rare scenarios. This thorough approach to collateral management and Synth development, coupled with transparent and secure practices, guarantees the protocol's and its users' success.

  2. Off-Exchange Settlement Providers are Diligent & Trustworthy. Our Off-Exchange Settlement Providers, including industry leaders like Copper.Co and CeFu, are reliable and secure, managing assets worth hundreds of millions across several blockchains for major institutions. Users trust these custodians to meticulously handle the collateral backing Synths, a trust that has remained intact as there have been no losses of user funds by these providers, unlike the $7 billion lost in DeFi smart contract hacks.

  3. Underlying Protocol Smart Contracts are Secure. The security of underlying protocol smart contracts is paramount. Users rely on these contracts being carefully crafted, tested, and audited before launch. Umoja's Alpha/Beta version has passed Quantstamp's audit, and we plan two more audits before the V1 release to further reduce risks of exploits.

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