What is UMA?

![UMA_square_red_logo.png](https://images.hive.blog/DQmPtjofZK1ofcepVAE19WcSEEXEV1TNS1w7cFUeQ5j9o9f/UMA_square_red_logo.png) UMA is an open-source project on which developers can create synthetic assets. Based on Ethereum network. UMA enablee one to create fast, efficient and secure synthetic tokens. - It has priceless contract templates - optimistic oracle services ^{To read more about synthetic tokens click [here](https://docs.umaproject.org/synthetic-tokens/what-are-synthetic-assets)}

Why use UMA?

- Helps you quickly create synthetic assets. - No limitation on designs of tokens that can track price of anything. - Economic guarantees ensures that your contract cannot be manipulated. - Minimize oracle usage and increase security with reduced costs with minimal on-chain transactions.

How UMA Works?

>![image.png](https://docs.umaproject.org/assets/images/optimistic-bf829d08b1002a699d9cf9c69e46076d.png)

Stats

Total value locked in contracts on UMA - $177 Million Current projects building on UMA - 11

Few Projects build on UMA

- [uUSD](https://umaproject.org/projects.html#uusd) - A yield dollar backed by ETH or rBTC. - [Perlinx](https://perlinx.finance/) - Decentralized liquidity pools and synthetic asset generation. - [Mario Cash](https://mario.cash/) - A bitcoin cash synthetic token backed by renBTC.

What are UMA Tokens

UMA token is used to operate UMA's dispute resolution system, known as the Data Verification Mechanism (DVM). Owning UMA gives you the ability to contribute price information to the DVM and govern UMA protocol. The benefits of owning UMA tokens. - Earning rewards for voting on projects. - Earning rewards for voting on price requests.

Stats of UMA.

Price :- $27.33

^{(At the time of writing this blog)} ||| |-|-| |Market Capital|$1,640,730,823| |24 Hour Trading volume|$278,075,082| |24h Low / 24h High|$26.15 / $32.87| |Circulating Supply|60,153,652 / 102,164,743| |Fully Diluted Valuation|$2,786,611,232| |Max Supply|102,164,743|

Sources & links

- [UMA project](https://umaproject.org/) - [UMA Docs](https://docs.umaproject.org/)