Thread by @ViktorDefi

1/ In less than 3 weeks, $UMAMI's $USDC vault is already capped at $5.5M😳

Now, that's #RealYeild in action.

Umami Finance is pioneering the institutional adoption of DeFi.

A 🧵about @UmamiFinance and it's innovative PRODUCT.

2/ Here's what I'll cover:

- Overview
- USDC Vault
- Tokenomics
- Team
- Risk

3/ Overview

Umami Finance is a DeFi protocol that uses a delta-neutral strategy to collect yield from GLP and hedges it via @TracerDAO.

Umami's vaults are built using trustless, non-custodian smart contracts hosted on @arbitrum

4/ Their smart contracts have been audited by @ZOKYO_io. And they partnered with @riskharbor for the insurance of their vaults.

5/ Umami's treasury sits at $4.24M, excluding UMAMI and ARBIS token holdings as at end of June.

Most of which they use to tap into yield-producing opportunities, and partner with projects across @arbitrum

umamifinance.medium.com/umami-finance-…

6/ USDC Vault

Umami's USDC vault consistently generates real yields by providing liquidity to $GMX leverage perpetual exchange while hedging market volatility.

7/ Generating #RealYield is at the core of Umami's product strategy.

Reason why their $USDC, and upcoming BTC & ETH vaults do not rely on shiny incentives schemes to generate yields.

Rather, they depend on sustainable on-chain revenue streams.

8/ How does USDC Vault work?

When a user deposits $USDC in Umami's USDC vault, they receive $glpUSDC as a fungible receipt token.

The $USDC is then used to mint $GLP (the GMX liquidity provider token), and hedges Tracer's derivatives $3S-BTC/USD+USDC and $3S-ETH/USD+USDC.

9/ $GLP get ETH yields from exchange fees and trader liquidations. Also, it collects $esGMX rewards for additional $ETH yield staked by the USDC vault.

The vault rebounds every 9 hours with the aim of hitting as much delta-neutral exposure as possible.

10/ Tokenomics

- Max Supply: 1,000,000 UMAMI

It is worth noting that the $UMAMI token is not an emission token. It is a protocol governance and fee-generating token.

That said, no new tokens can be minted after it's max supply.

11/ Team

The team is led by @IntrinsicDeFi, alongside Michael E and Alex Golubitsky.

Followed by a cream of bright minds behind Umami's engineering, business, and ,marketing teams.

12/ Risks

The DeFi space is littered with opportunities and risks. It is worth acknowledging the risks.

- Market Risk: This one is general risk in crypto. If the market dips, Umami's will dip with it. Although Umami's treasury is aimed at achieving a 0.5 beta.

13/ That means, UMAMI should underperform on upward moves, and underperform on downward moves.

14/ Umami has been audited, which frees it from smart contract risks. And the Umami DAO is contracted alongside Umami Labs to provide oversight of its Gnosis Safes.

docs.umami.finance/umami-finance/…

15/ Thank you for reading.

Here are more resources for you.

avgjoescrypto.substack.com/p/umami-financ…

docs.umami.finance/umami-finance/

umamifinance.medium.com

16/ Follow me @ViktorDefi for more threadooorrs.

@dennis_qian
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@BillyBobBaghold
@CryptoDragonite
@defiprincess_
@crypto_condom
@DeFi_Dad

One more thing. Please retweet.

https://twitter.com/ViktorDefi/status/1557665335565844480?s=20&t=AabAZ7Nwv4qASlTcGgHzig

Typo* Overperform on download moves.

That is, If the price of Bitcoin goes up 1%, the value of Umami’s treasury should go up 0.5%. And vice versa,