UMA (Universal Market Access) is a protocol on the Ethereum blockchain that allows users to create and trade synthetic assets. UMA is designed to enable access to financial markets in a decentralized manner, allowing the creation of financial contracts that mimic the performance of any asset, such as stocks, commodities or even other cryptocurrencies.
Synthetic assets that can be created using UMA are known as âsynthetic tokensâ or âderivatives.â These derivatives allow users to speculate or hedge against price fluctuations without having to own the actual asset. The UMA protocol is based on smart contracts that ensure that these operations are carried out transparently and securely.
