Hedging-as-a-service, a tool developed by the cryptocurrency platform Umoja to protect customers against cryptocurrency losses, debuted in beta form on Tuesday. Umoja’s goal is to improve the security and usability of cryptocurrency investments, creating chances for hedging in a $500 trillion industry.
Umoja Launches A Platform for Beta Hedging
The beta release of Umoja’s hedging-as-a-service product has been announced by the cryptocurrency platform. Robby Greenfield founded Umoja with the goal of making it easier for users to put bespoke hedging plans into place to protect against probable liquidation and asset depreciation.
In a statement provided to Bitcoin.com News, Greenfield stated, “Umoja’s beta is more than just a new service launch — it’s a significant stride towards a future where crypto investments are safer and more stable.” We’re giving investors of all stripes access to a plethora of new options by democratizing and streamlining the hedging process.”
Centralized finance (Cefi) Dynamic Term Loss Coverage for assets like Bitcoin, Ethereum, and AVAX is now available through Umoja’s beta launch. This means that investors need less cash and can flexibly hedge against risk at a lower cost than with previous approaches. Users can now stake assets for yield while keeping their principal safe from loss thanks to a new zero-loss staking function.
The primary objective of the platform is to make hedging more approachable for a wider range of investors. Users choose personalized coverage options that complement their objectives. Lowering obstacles to entry, investors submit 10% refundable collateral to begin coverage. For coverage to continue, collateral must remain over 5%.
With the support of sponsors such as the Avalanche Foundation, Quantstamp, Blockchain Founders Fund, Orange DAO, and Coinbase Ventures, Umoja was able to raise nearly $2 million last month. In Q2 2024, it will transition from its current centralized finance (cefi) platform to a decentralized finance (defi) platform.
“Investors boarding the wild ride of defi markets can protect themselves by hedging,” said Greenfield. As such, it shouldn’t be considered a luxury or a mental trick. Umoja’s primary goal is to give defi investors a safety net.
How do you feel about Umoja introducing its beta platform for hedging-as-a-service? Please feel free to express your ideas and opinions in the space provided for comments below.