This Wednesday the UMA project will list their $UMA token on Uniswap. We wanted to give our subscribers a quick rundown on UMA, as well as the liquidity impacts of listing on Uniswap. The latter portion will be tackled by Yan Liberman in tomorrow’s Delphi Daily.
The initial listing price of $UMA is set at ~$0.26, which implies a fully diluted market cap of ~$26.67mm. Notably, this is the same listing price as initial seed rounds. Only $2,000,000 of the total $100,000,000 UMA is set aside for this week’s Uniswap listing. Roughly 48.5% is held by founders and early investors, 35% is set aside for developers and UMA users, and 14.5% for future token sales.
What is UMA?
At a high level, UMA is a protocol for building “priceless” financial products.This consists of two core components: 1) the decentralized oracle (DVM) and 2) the financial contract template.
The first financial contracts that users will be able to build are priceless synthetic tokens on Ethereum. These ERC-20 tokens track external assets/information without the need for continuous on-chain price feeds. As seen by recent Defi events (SNX front-running, Maker Black Thursday, etc.), the fragility of applications are heavily due to oracle issues. ‘Priceless’ contracts mitigate this problem by incentivising counterparties to properly collateralize their positions without the need for an on-chain