About UMA

UMA is a decentralized platform designed to facilitate Universal Market Access through innovative financial contracts. It focuses on creating "priceless" financial instruments that significantly reduce reliance on oracles, thereby addressing common security and scalability challenges associated with decentralized finance (DeFi). The platform's initial offerings include priceless synthetic tokens, which are ERC20 tokens capable of tracking a wide range of assets while minimizing the need for on-chain price data. The UMA token serves two primary functions within the ecosystem. First, it empowers holders to participate in governance, allowing them to influence the types of contracts available, the asset classes supported, and essential system parameters and upgrades. Second, while the platform's design reduces the frequency of on-chain price requests, it does not eliminate them entirely. In cases of contract disputes, UMA token holders are responsible for fulfilling price requests through the Data Verification Mechanism (DVM), ensuring a robust framework for dispute resolution.