βš›οΈSmartcoins Overview

Smartcoins are digital assets built using Synths.

The Umoja Protocol acts as a robust asset factory, enabling the creation of digital assets with higher resilience and yields than current market tokens. It leverages Synths to generate innovative financial products with sophisticated, self-operating strategies. Take the synthetic dollar, for instanceβ€”like Ethena's USDe. Developers can replicate such a product more flexibly by:

  1. Initiating a staking contract for collateral deposition (such as USDC, ETH, BTC).

  2. Using the collateral to form a Yield Synth on Umoja, safeguarding the staked principal and producing yield through a delta-neutral derivatives position.

  3. Issuing a corresponding token (like 'bitUSD' with BTC collateral) to the staker.

Umoja automates the complex delta-neutral procedures, freeing developers to craft new synthetic dollars with various assets or explore other Umoja Synths.

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