One of the most important advantages of cryptocurrency is its unlimited accessibility. Unfortunately, traditional financial derivative contracts are the complete opposite of unrestricted and easily accessible contracts. The process of entering an exchange position is currently fraught with questions of verification and daunting legal liability.
To set up a brokerage account, you will need to answer questions about Know Your Client, Anti-Money Laundering, and Investor Suitability. On top of that, many brokerage accounts have a minimum required amount that you will need to put in before you can get started. If your positions exceed the limit available in negative equity, you could be sued.
Universal market access does not require personal verification because it is not based on a system of trust between several entities. Instead, UMA is an open source protocol that allows two parties to design and create their own financial contracts. This protocol is carried out entirely through Ethereum smart contracts which ensure a completely trustless and decentralized framework which eliminates the risk of human error.
What is universal market access?
UMA is a Defi protocol that does away with the centralized brokerage firm and allows users to trade contracts similar to futures and options using smart contracts. UMA was formed in 2018 by two former Goldman Sachs employees who wanted to use decentralization to bring derivative contracts to an open market without high brokerage fees or regulations.
The UMA protocol has five main structural elements in its contracts to ensure that all parties are properly protected and well informed: margin accounts for each counterparty, public addresses of all counterparties, agreed economic conditions to calculate value, smart contract functions that maintain margin balances and an oracle that provides secure, verified off-chain recording in the event of a dispute.
Thanks to UMA’s open and automated structure, investors looking to raise funds can do so freely without the hassle and legal risks of using a brokerage firm. UMA uses its own off-chain oracle to allow variability that other oracle platforms like chainlink do not support. This off-chain oracle also allows commodities, stocks and altcoins to be used in its smart contracts. The variety of its market connects traditional finance with this automated transaction service which ensures that all of its users are informed of their positions and protected against fraud.
Universal Market Access (UMA) increases 14% in 24 hours
The UMA has been affected by the recent market downturn like any other altcoin, but its recent price movements have left many of its holders with hope for the future of this coin. The UMA made a lot of noise this year in early February when it jumped from an outrageous $ 11 to a peak of around $ 43 in just 3 days. Unfortunately, this was a very short-lived success for the project as it immediately embarked on a downtrend after its peak. He currently sits around $ 10 with the only hope that he can get back to where he was just a few months ago. Its recent low of $ 7.50 is a 480% drop from its high, but also not its low price just before the 3-day jump of $ 5.90, which at this rate it could easily. to go past.
Why is UMA moving?
There is nothing directly responsible for this 14% increase, which could mean that it is a temporary correction. A coin so involved in the volatile derivatives and margin trading market itself is sensitive to erratic price movements, which is largely responsible for its jump to $ 43 earlier this year. At this rate, it may take some time for UMA to enter a positive trend which will most likely pass through another crypto bull market.
Where to buy UMA
UMA is a popular piece that has been around for a relatively long time now. It can be traded on most popular crypto exchanges like Binance and Coinbase. If you want to participate in their trading markets, they have a list of projects built from their platform on their website.
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