Thread by @l_woetzel

1/🧵 What is @Umee_CrossChain & why is it key to unlocking DeFi for Web3?

Problem: interest rates in crypto are entirely based on narrowly focused supply & demand data.

Solution: build crypto aggregated term structures that use time-to-maturity & credit-worthiness

Read on 👇

2/🧵 How does #Umee do this?

There is an entire ecosystem of uTokens that are claims on constantly accruing interest (in the form of uTokens). uTokens can simultaneously be used as collateral.

#ATOM

3/🧵 #Umee will also features meTokens which are essentially staking derivatives except the interest stream accrues in the form of meTokens (such as meATOM) that can then be used elsewhere in DeFi

4/🧵 Umee is extremely focused on composability for these interest bearing tokens:

Bridges:
✅IBC
✅ETH (using gravity's libp2p based gossip network)

Composability makes the world go round in the #Cosmos ecosystem.

5/🧵 The coordination of all of the lending and debt positions are managed via the Asset Facility Coordination Protocol.

Umee contains depositors, borrowers, liquidity providers and various parameters that need to be kept track of.

$UMEE $ATOM

6/🧵 Base rates represents the cost to borrow regardless of the existing utilization of
the platform.

Umee aggregates across Web3 lending platforms to compute this aggregated base rate.

The more data / platforms, the more quality the base rate.

7/🧵 tldr; #Umee aims to build an entire Web3 cross-chain DeFi ecosystem by narrowing in on accurate & nuanced base rates as the fundamental building block.

My first Cosmos review (for fun) - what should I review next?

Comment below👇

Whitepaper:
umee.cc/umee-whitepape…