The popularity of lending and borrowing platforms in the decentralized finance (DeFi) space is growing as consumers seek solutions across blockchains. Accordingly, Umee, the DeFi-based cross-chain lending, and borrowing protocol, is set to expand access to digital assets through its services.
Umee Supports Cosmos Assets
The company has upgraded its mainnet to support all Cosmos IBC assets in its lending and borrowing platform.
The new development positioned Umee as the first Inter-Blockchain Communication (IBC) based Blockchain lending interoperable protocol compatible with Ethereum and all the Cosmos applications.
Meanwhile, the new upgrade implies that Umee will ensure seamless lending and borrowing involving multiple chains and make available locked capital to needy users.
Moreover, the mainnet will enhance interoperability via the IBC and across blockchains in the Cosmos ecosystem. Its integration with Ethereum will unlock new liquidity and make it available to DeFi users across platforms.
Therefore, this would boost the lending and borrowing of assets, facilitating faster and cost-effective transactions and paving the way for large-scale debt-trading protocols.
According to Brent Xu, CEO of Umee, the firm is also considering incorporating cross-chain DeFi features across several of its interconnected blockchains. “This will further expand the Web3 debt market,” added Xu.
The global demand for DeFi-related finance is rising, and institutions are pivoting to decentralized protocols to meet their lending and borrowing needs. With the new development, the on-chain bond market will be part of the onboarding into the decentralized autonomous organization (DAO) ecosystem.
Umee’s previous launch of UDX, its DAO platform, will offer a suite of tools to utilize. The tools include a Loan Specific Blockchain and DeFi Native Yield Curve, which users can leverage to get more favorable interest rates.
The upgraded mainnet and UDX have placed Umee as the sole blockchain lending and borrowing platform with scalability, interoperability, and an enterprise-based blockchain bond market protocol.
Stepping into TradFi
In September, Umee announced that it was developing UDX, an institutional lending DAO to onboard the bond market into the DeFi lending ecosystem. The move will improve the bond market’s ability to adapt to other emerging digital platforms. It is also compatible with Umee-based protocols like Ethereum, Cosmos, Avalanche, Solana, and Near.
At that time, Aimee’s CEO noted that a yield curve similar to that of the traditional financial sector was unavailable in the DeFi space. As a result, to host the conventional finance system in DeFi, the UDX yield curve will enhance the asset-specific interest rates for numerous investors.
Umee is currently on an expansion spree into the DeFi environment. It has gained close to $40 million in funding over the past 13 months.
In June last year, it managed to raise $6.3 million as seed funding to kickstart the development of its Cosmos and Ethereum protocol. In December 2021, it also raised $32 million in token sales before the launch of its mainnet in February 2022.
The DAO structure is expected to distribute funds via its native Cosmos SDK governance system that controls loan issuance. Xu added that the chain would serve as a public ledger for the stability of the funds.
Umee is driving the next generation of permissionless and open financial markets for the global economy. It is a layer-1 blockchain for cross-chain interaction powered by the Tendermint Consensus Protocol.