Umee Overview
Umee is a cross-chain DeFi hub, a universal, permissionless platform open to all users and projects to be part of their DeFi journeys. Umee provides users with the ability to lend and borrow across different blockchains. Umee’s Universal Capital Facility allows users to collateralize assets on one blockchain towards borrowing assets on another.

Architecture Overview

Umee is built on Cosmos while leveraging IBC as a layer 0 protocol for cross blockchain communication and interoperability. Utilizing the Gravity Bridge to connect with Ethereum, Umee will interface with multiple bridging solutions to create a universal DeFi hub.
One of key differentiators of Umee is involving collateralized staked assets from POS blockchains meaning utilizing staked assets as collateral for borrowing assets on another blockchain. Users will be able to interact with multiple networks seamlessly without relying on centralized gate keepers.

User Journey

By staking assets on the Cosmos network, a user will be earning staking rewards from their staking activity while simultaneously the user will be able to utilize their staked positions as collateral to borrow assets on the Ethereum blockchain.
Umee will also implement a mechanism where staking rewards from staked Proof of Stake assets can be immediately cashed out to pay the interest from borrowed positions. A user can borrow assets, eg. DAI, from Ethereum and subsidize the interest payments that would be paid for borrowing the DAI with the staking rewards, effectively realizing a minimal to negative interest rate depending on the staking yield and borrowing rate.
Last modified 2mo ago