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

Secure and Risk-Tolerant Strategies

Each Synth or Smartcoin within the Umoja Protocol is built on a unique asset management strategy, utilizing various third-party sources. These sources can include centralized entities like Off-Exchange Settlement Providers, exchanges, or other blockchain protocols. Before any Synth or Smartcoin is integrated, it undergoes rigorous vetting, development, and testing to ensure reliability, including assessments of rare scenarios. This thorough approach to collateral management, combined with transparent and secure practices, is designed to ensure the success of the protocol and its users.

Trusted Settlement Providers

Our Off-Exchange Settlement Providers, including industry leaders like Copper.Co and CeFu, are diligent and secure, managing assets worth hundreds of millions across multiple blockchains for major institutions. These custodians have proven trustworthy in handling the collateral backing Synths and Smartcoins, maintaining user confidence with no recorded losses, unlike the $7 billion lost in DeFi smart contract hacks.

Secure Underlying Smart Contracts

The security of the underlying smart contracts in the Umoja Protocol is of utmost importance. Users depend on these contracts being carefully designed, tested, and audited before launch. Umoja's Alpha/Beta version has successfully passed Quantstamp's audit, and Mainnet v1 has successfully passed additional audits to minimize the risk of further exploits.