Announcing UDX - The Institutional Lending DAO
We are exhilarated to be announcing the official launch of UDX, the institutional lending DAO of Umee, to power the first-ever DeFi-native yield curve. Umee is reimagining the $200 trillion global debt capital market by evolving lending protocols. UDX functions as an institutional layer to enable and accelerate crypto adoption across continents in the lending ecosystem.
Loans are a vehicle used by companies for investments into longer term development in the traditional capital markets. UDX has the ambition to bring such a vehicle to crypto. UDX will enable debt financing in the form of collateralized fixed term loans to crypto-focused institutions like validator service providers, custody providers, funds, exchanges, and reputable DeFi protocols. Those loans can help facilitate mergers and acquisitions and support builders over longer time frames. They will be customizable in order to provide optionality for borrowers (e.g. the ability to use PoS rewards to make payments on a loan) and unique yield opportunities for lenders. As the underwriter of the loans, UDX will generate revenue through loan issuance fees, OTC trading fees, and novel fee structures. All the revenue generated by UDX will be used to buy and burn the UMEE tokens, as a source of value accrual of the token.
UDX applies the same loan underwriting principles that include assessment on the borrowers’ creditworthiness and the business need of the loans. Borrowers will receive a fixed interest rate on loans and there will be options for refinancing. Lenders will benefit from the expansibility and composability of open source web3 technology.
The Future of Cross Chain Lending Market
At Umee, we envision a world where finance is transparent and decentralized in every single way possible. Umee is committed to transforming the $200 trillion global debt markets using open source code, to bring forth a universal yield curve, and to set a solid foundation for a modern monetary system. More exciting announcements are on the way! Be sure to follow us on Twitter or Discord closely!