🧠Solution: creating Smartcoins

Smart money primitives using composable trading strategies, on-chai custody, and centralized liquidity venues.

Umoja believes that enabling self-sustaining money helps democratize access to global wealth creation like never before. By embedding risk-tolerant trading strategies within the assets we all invest, save, and transact in, we better automate our financial well-being to focus on living a fuller, less anxious life.

By producing Synths– tokenized trading strategies that serve to replicate basic financial instruments with more liquidity and end-user protections– Umoja will make tokens composable with asset management strategies, making money safer and creating β€˜smartcoins’ that limit risk and optimize yields.

As a result, Synths provide the following benefits:

  1. Scalability is achieved by utilizing underlying, levered perpetual futures trading, which allows any Synth to scale with capital efficiency.

  2. Risk Tolerance is achieved by building in liquidation protection into every Synth, so that end-users aren't exposed to the complex consequences of trading derivatives themselves.

  3. Censorship Resistance by separating backing from the banking system and storing trustless backing assets outside of centralized liquidity venues in on-chain, transparent, 24/7 auditable, programmatic custody account solutions.

  4. Customizability is achieved as Synths are easily integrated into both new and existing assets or used on their own. These building blocks significantly expand the potential for builders, investors, and asset managers to employ strategies previously beyond their reach.

  5. Flexibility is unlocked by replicating financial instruments from less liquid markets in the perpetual futures market, which can be over 30x more liquid (e.g., Synth Options have less counterparty risk and exponentially more strike and term flexibility than their traditional market counterparts).

  6. Affordability is gained by using more liquid markets to replicate strategies and financial instruments, benefiting from smaller spreads to achieve specific objectives.

Umoja provides flexible and customizable building blocks for smart money, giving anyone the ability to enhance or create new financial products that are yield focused and risk protected without dependence on the existing banking system.

Utilizing recent developments in "off-exchange" secured custody accounts to access centralized liquidity, while retaining the core value proposition of transparency and on-chain custody, we are able to scale Synths into the billions. We will be the building blocks of the future of money and asset management for both decentralized and centralized crypto ecosystems.

As market conditions change, so to may the underlying strategies enabling Synths, ensuring that the protocol is resistant to radical market shifts in the long-term.

Finally, the tools for wealth creation are open source and available to all.

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