Revolutionizing Retail Investing with Automation

An Automated Approach to Retail Investing

Umoja, an asset management protocol, is revolutionizing asset management with innovative tools like Synths and smartcoins. These tools offer retail investors increased returns and decreased risks, breaking down barriers that typically prevent them from accessing top-tier investment opportunities reserved for institutional investors. By automating complex financial strategies, Umoja allows anyone to engage in advanced asset management without extensive financial knowledge.

What are Synths?
Synths are tokenized asset management strategies that serve as the groundwork for creating smartcoins within the Umoja ecosystem. A Synth is essentially a proprietary trading algorithm that mirrors the performance of traditional financial instruments like options. Umoja provides two types of Synths: Synth Options and Yield Synths.

Yield Synths, also known as Yield-Generating Synthetic Dollars, offer dollar-denominated, principal-protected returns in all market conditions, aiming to maintain the USD value of the initial investment regardless of market volatility. Yield Synths provide an advantage over traditional synthetic stablecoins by combining principal protection with yield generation, making them appealing to risk-averse investors seeking consistent returns.

On the other hand, Synthetic Options (Synth Options) are algorithms that replicate the behavior of a traditional crypto option. By adjusting positions in a portfolio of tokens and perpetual contracts based on market movements, Umoja’s Synth Options enable the automation of crypto trading with 10x leverage and no liquidation risk.

There are two types of Synth Options available: Synth Put Options for hedging against potential losses by betting on price decreases, and Synth Call Options for taking leveraged positions on price increases.

How to Use Synth Puts and Calls?
Users can directly access Synths through Umoja’s dApp, choosing from various Synth strategies based on their market outlook and risk tolerance. The process of using Synth Put and Call Options involves selecting the option type, token, amount, duration, and strike price. Visual tutorials on using Synth Put and Call Options are available on the Umoja website.

What are Smartcoins?
Smartcoins are self-trading digital assets built using Synths within the Umoja ecosystem. These assets autonomously trade their underlying value, creating a new asset class known as smart assets. Smartcoins combine a base asset with a Synth strategy to maintain and optimize their value independently, offering a hands-off investment approach for users. Some smartcoins available on Umoja include yBTC, USDb, bstETH, and bstBTC.

The UMJA Token
The UMJA token is a crucial component of the Umoja ecosystem, with a token generation event planned for August 2024. UMJA will serve multiple purposes, including governance, protocol fee discounts, and insurance. Users can stake UMJA tokens to participate in governance, influence decisions, earn yield rewards, and receive protocol fee discounts. Staking tokens in the Insurance Pool safeguards the protocol and earns rewards, with plans to use fees collected from Synth usage and asset minting to buy back UMJA tokens on decentralized exchanges, supporting the token’s value.

Overall, Umoja aims to democratize asset management by providing retail investors with access to sophisticated financial strategies through Synths, smartcoins, and the UMJA token, offering a unique combination of automated risk management and yield optimization.

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