UMA is a decentralized platform focusing on financial agreements to enable universal market access through synthetic assets.
In the centralized finance (CeFi) sector, synthetic assets allow investors to take advantage of an asset’s price movements without necessarily interacting with it. For example, an investor can interact with bonds and stocks through derivative products such as options and futures. In addition, synthetics enable access to multiple financial routes.
Synthetic assets are also available in the decentralized world. Mostly referred to as cryptocurrency synthetic assets, they allow virtual currency investors to interact with CeFi while still being able to enjoy the benefits of distributed ledger technology (DLT).
Crypto synthetic assets are part of the decentralized finance (DeFi) space. And as DeFi gains momentum, projects are being born to power every corner. A good example of a phenomenal DeFi project is UMA.