Overview
The Umoja Protocol utilizes both on-chain and off-chain elements to operate effectively. Transitioning from Beta to V1 throughout Q1 and Q2 of FY2024, the focus is on further decentralizing the protocol while ensuring security, thorough testing in real-world conditions, and maintaining cost-effectiveness (i.e., liquidity) for users. This strategy aims to uphold Umoja's value proposition of automating asset management across various token markets.
On-Chain Elements
The on-chain elements of the Umoja Protocol consist of smart contracts designed for:
Minting and redeeming Synths,
Gathering collateral and managing the protocol's overall Synth positions through the Global Pool,
Contributing USDC to the Insurance Pool to mitigate Black Swan risks,
Staking uUSD & UMJA in the Governance Pool for tokenomics engagement,
Reallocating profits and surplus collateral through the Investment Pool.
Off-Chain Elements
The off-chain elements of the Umoja Protocol consist of
The dApp interface (not a functional part of the protocol itself, but it does simply users interacting with the underlying protocol),
Off-exchange settlement Providers that custody end-user funds to prevent said funds from being exposed to centralized exchanges.
Centralized exchanges exciting Synth strategies that are reliant on such exchanges for liquidity.
Middleware services enabling the dApp interface to properly function.
Progressive Decentralization & Evolution
It's important to highlight that the Umoja Protocol's architecture will evolve with the addition of new Synths. Some Synths may utilize off-chain strategies involving centralized exchanges, while others will implement fully on-chain, DeFi strategies, eliminating the need for intermediary custodians.
Umoja Labs Github
You may find the dApp frontend, backend, and other smart contracts here.
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