UMA recently became the talk of town. The Oracle based project suddenly Wale up from Accumulation and blast with over 350% within Few weeks. The Price skyrockets to 7$ from merely 2$ in a short period of time frame. So, what ignite the fire? Let's Dive into it....
🏵️ What is UMA?
UMA is an optimistic oracle (OO) that can record any knowable truth onto a blockchain. It tells smart contracts “things about the world” so contracts and markets asking for that data can be settled. The OO has been called “a human-powered truth machine” because it is flexible enough to handle ambiguity and expands the design space possible in web3. Optimistic Oracle are used in Across Bridge, Polymarket Prediction, outcome.Finance DAO and Many other projects.
✴️ Why UMA Pumped 350%
⚡ According to Coinglass stats, the UMA open interest is $130.16 million, indicating a 32.08% increase. Whilst, the derivatives trade volume for UMA spiked 32.55% to $3.01 billion. The surge in open interest comes ahead of the impending Oval update by UMA, which has created massive hype recently.
⏩ UMA, in collaboration with Flashbots, today announced the launch of Oval, a mechanism that allows lending protocols to capture and monetize OEV. UMA’s Co-Founder Hart Lambur recently hinted that the launch of this solution is expected within this week. (Now Live 24th January 2024)
💡What Is OEV?
Oracle Extractable Value (OEV) is the value that oracles can capture by using their position as data providers to smart contracts. Oracle extractable value (OEV) is like a game of musical chairs. Some people (oracles) know when the music will stop and can grab a seat before others. They can also change the price of the seats to make more money. This is unfair to the other players who rely on the oracles information.
⏫ The roll-out of Oval is a collaborative effort between Uma and Flashbots, one of the leading MEV research and development firms. “Oval is building on that insight to finally return Oracle Extractable Value (OEV) back to DeFi protocols and their users. We look forward to supporting them on that journey,” said Hasu, Strategy Lead for Flashbots.
🔅 Some On-chain Metrics
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These things influenced the price Heavily. A strong Hype Created in Oracle sector and the narrative pushed other players Like $API3 as these projects pumped Over 30% in a single Day. OEV is a great narrative and will play a major role in Blockchain Oracle Space. Next post we'll update on that.
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© This composition is not endorsed by any entity; the names mentioned are solely for informational purposes. By stating this, we absolve ourselves of any liability for losses incurred if you invest in this project after perusing our article. This article should be regarded as a source of information, not financial counsel. Please note that this disclaimer is intended to protect both the reader and the author.
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