Using your UMA tokens

Want to know a bit more about what you can do with your UMA tokens?

Read on to find some suggestions for how you can use your UMA to participate in keeping our protocol secure, use it as collateral to mint dollar pegged expiring tokens or call options which entitle you to purchase more UMA at a fixed point int he future, If you have held UMA for a while, its worth checking if you received our uTVL airdrop which you can claim until the end of June.

Voting#

The UMA token is primarily a governance token, which allows token holders to vote on UMA Improvement Proposals (UMIPs) and on price requests made to the DVM through our Voter Dapp.

Those who vote with the majority consensus are granted 0.05% inflationary rewards for participating in governance and for helping to keep our oracle secure. Upcoming UMIPs can be tracked through our Discourse, while DVM votes are discussed on the #voting channel in the UMA Discord. If you are new to voting on UMA take a look at our video walkthrough of our voter Dapp.

Yield Dollar Minting#

UMA tokens are accepted as collateral for minting Yield Dollars on the UMAnji platform from Machina Labs. UMA tokens are deposited as collateral to mint the yUMA21 token, which expires to exactly $1 on 31st December 2021.

Liquidity mining rewards are available for those who mint the token and use it to provide liquidity in the yUMA21/USDC liquidity pool on Uniswap.

Call Options Minting#

A call option gives the buyer the right - but not the obligation - to buy an asset at a specified price (strike) at a specific time period (expiry). Call Options for UMA can be minted on the MySynths platform.

Call Options may be an unfamiliar product to many DeFi users, so we would encourage people to read the articles explaining call options and how they have been implemented on UMA. For a deeper dive, there is also an internal learning session on our YouTube which goes into more depth.

uTVL Options#

If you had held over 10 UMA tokens, voted in our Voter Dapp or had minted an UMA product by 10th Feb 2021, you can claim the uTVL airdrop tokens from our Claims Dapp. These tokens are redeemable for $UMA after the 30th June 2021 with their value depending on the Total Value Locked in the UMA protocol at that time. uTVL updates are available on our Youtube channel and also check out our FAQ.

More information on the options and how they work is available in our medium article. A number of other DeFi protocols, including Sushi, Badger, Harvest and Aragon are implementing their own options and we welcome approaches from other communities. Our SuperUMAns initiative encourages direct cross-protocol collaboration between DeFi community teams.

Last updated on