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The UMA team proposed to list the UMA Token as an asset for lenders and borrowers on AAVE v2, a move that would allow UMA tokenholders to collateralize their tokens and potentially increase AAVE's Total Value Locked (TVL). The proposal, which was met with support, is part of an active effort to involve the community in decision-making processes.
The discussion primarily revolved around the proposal by Tommy1, a member of the UMA team, to list the UMA Token as an asset for lenders and borrowers on AAVE v2. UMA is an open-source protocol that allows developers to create and manage decentralized financial products on the Ethereum network. The UMA token operates UMA’s optimistic oracle, enabling holders to contribute price information and govern the UMA protocol. The proposal aims to allow UMA tokenholders to collateralize their UMA tokens to gain exposure to other assets or to obtain more UMA. The UMA protocol currently secures around $109 million and has never been compromised. The addition of UMA on AAVE would provide additional Total Value Locked (TVL) to AAVE and an opportunity to earn additional fees as UMA holders would be able to collateralize their assets on AAVE1.
UMA is a significant player in the cryptocurrency market, with a market cap of $1,477,703,740 and a 24-hour volume of over $11 million on Coinbase. It is listed on major centralized exchanges such as Coinbase, Binance, Gemini, OKEx, and Huobi, and is also included as an asset in the first Defi Index fund. The UMA community is sizable, with 6,100 Discord users and 25,000 Twitter followers. On Github, UMA is a top 10 project by defi activity.
The proposal to add UMA token as a collateral currency on AAVE was met with support, particularly from user Son_of_Ishtar who described $UMA as a high-quality reserve asset and a fit for Aave 1,2. A poll was initiated by Tommy1 to gather community opinion on this proposal, indicating an active effort to involve the community in decision-making processes.
Posted 3 years ago
Last reply 3 years ago
Summary updated 2 months ago
Last updated 06/12 00:44