Umoja’s Beta launch introduces a new approach to crypto hedging

FinanceFeeds Editorial Team

Umoja is launching its Beta version, offering an innovative solution for managing the risks associated with digital assets. This new technology aims to make the process of hedging simpler and more accessible to a wide range of users, ensuring the security of their investments.

The Beta phase of Umoja introduces a unique protocol that simplifies and enhances the hedging of various digital assets. This development provides users with an easy way to apply hedging strategies that suit their risk tolerance, protecting them from asset depreciation and liquidation risks.

Umoja is at the forefront of risk management in the DeFi sector, making it easier for users to protect their trading portfolios with strategies similar to those used by major hedge funds. Umoja’s goal is to facilitate decentralized hedging for different asset types, including cryptocurrencies, fiat currencies, digital bonds, real estate, and commodities, aiming for a significant role in the vast market.

Originally started as a microfinance platform for emerging markets, Umoja shifted its focus to address the challenges of currency volatility and risks associated with USD loans in the DeFi market, which are traditionally managed through hedging. Recognizing the barriers of complexity, cost, and liquidity requirements in traditional hedging, Umoja is now dedicated to improving hedging within the DeFi ecosystem.

Robby Greenfield, Umoja’s founder, emphasizes that the Beta launch is more than just introducing a new service; it’s a step towards making crypto investments more stable and secure by simplifying the hedging process and making it more widely available.

Umoja introduces an innovative feature called CeFi Dynamic Term Loss Coverage for cryptocurrencies, offering investors a way to hedge against risk flexibly. It also features “zero-loss staking,” which allows users to earn yields on their staked assets without the risk of losing the principal, catering to conservative investors.

The protocol offered by Umoja reduces the complexity of hedging, making it achievable for a broader range of investors. By choosing a term coverage product that matches their investment goals and depositing a 10% refundable collateral, investors can lower the barriers to entry. Maintaining the collateral above a 5% threshold ensures ongoing coverage, allowing for hedging with significantly less capital and at lower costs than traditional methods.

Umoja’s Beta launch provides sophisticated and automated hedging services to a large audience, offering a solution to the challenges of crypto volatility in a competitive and cost-effective manner.

Greenfield adds that hedging should be straightforward and available to everyone. Umoja aims to provide this level of security for DeFi investors. As it transitions from a CeFi to a DeFi platform, Umoja is led by a team knowledgeable about crypto market volatility. The project has raised over $2 million and is supported by notable organizations such as the Avalanche Foundation, Coinbase Ventures, and others.

About Umoja Labs: Umoja Labs is a fintech company focusing on digital assets, offering solutions for cross-border payments and asset management. It has participated in digital humanitarian aid programs and provides affordable lending and asset hedging solutions.

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