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Cross Chain Capital Facility
The Umee Cross Chain Capital Facility is where financial logics are coded.
After assets are sent from other blockchains via the Umee bridge, they can participate in the DeFi protocol via the Cross Chain Capital Facility. The Cross Chain Capital Facility was built using Ethereum smart contracting language as well as Cosmos architecture based on CosmWasm for building out the DeFi tools.
Umee will allow the ability to lend on one blockchain and borrow on another. For the first iteration, a user will be able to lend on the Ethereum blockchain then borrow assets on the Cosmos blockchain and vice versa.

uToken

Users who wish to participate in lending deposit their assets through the Umee Bridge and are sent to the Cross Chain Capital Facility. Once the deposit has been confirmed, the lender will receive a collateral token, the uToken. For lending their assets, they will receive interest. The uTokens represent the assets lent as well as the earned interest through lending the assets.
The uToken is an ERC 20 compliant token that represents the collateral position from the Cosmos side on Ethereum

meToken

A user who stakes assets in the Cosmos ecosystem can send their tokens to Umee, stake them and will receive a meToken in return. When the stake position earns staking rewards, the meToken concurrently earns staking rewards.
meToken = staked position and maps a 1:1 with a staked asset

Unbonding Process

The user can withdraw the staking rewards whenever they choose. To receive the funds, the user has to execute an unbonding process based on the original token’s staking properties and exchange the meToken for the original principal amount.
After the unbonding period, the holder of the meTokens will be able to exchange their meTokens for equivalent uTokens. Holders of uTokens can immediately withdraw Atoms or any tokens they deposited.
Last modified 2mo ago
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