Tokens and Derivatives to Trade Anything

UMA is a decentralized financial contracts platform built to enable Universal Market Access. Use UMA’s self-enforcing contract design patterns and provably honest oracle mechanism to create your own financial products using standards like ERC20. Read Our Whitepaper.

We are a platform for your financial innovation.

UMA is designed to power the financial innovations made possible by permissionless, public blockchains, like Ethereum. Using concepts borrowed from fiat financial derivatives, UMA defines an open-source protocol that allows any two counterparties to design and create their own financial contracts. But unlike traditional derivatives, UMA contracts are secured with economic incentives alone, making them self-enforcing and universally accessible.

How It Works: A Financial Derivative (For Apples)

1: Custom, 2-Party Agreement

Alice thinks the price of apples will go down over the next six months. Bob thinks apples are cheap and wants to go long. Bob and Alice formalize their trade using an UMA smart contract. Both sides deposit a margin requirement of 10% that will be lost if they misbehave.

2: Automatic Enforcement

Over the next six months the price of apples shifts up and down (but mostly down). As the price shifts down (as verified by UMA’s oracle), Bob automatically contributes money to cover his margin requirement. The more it shifts down the more he contributes.

3: Instant Settlement

After six months, the price of apples has fallen by 30%. Alice's bet was right. Because Bob was consistently contributing funds to re-margin his position and not risk losing his 10% margin requirement, the contract can be instantly settled.

What will you build with UMA?

Decentralized Crypto Futures?

Write contracts representing levered crypto exposure—or anything else that can be expressed with decentralized futures, CfDs, or total return swap contracts.

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ERC20 Tokens for Real-World Assets?

Design ERC20 tokens to trustlessly tokenize long, short, or even levered exposure to real-world assets using synthetic derivatives.

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Your Own Money Market Token?

Create your own interest paying, price-stable, money market token.

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Something Else?

Do you have another idea? We want to help make it happen.

Contact Us

Regulating Decentralized Finance

We believe deeply that financial markets should be universally accessible and open, a vision we know is shared by financial regulators globally. The potential of decentralized finance is truly exciting—provided that regional laws and regulations protecting consumers are respected. UMA is an open-source, permissionless, and censorship-resistant protocol built to power safe and responsible financial innovation.