Smart money protocol aimed at aiding users in accumulating wealth via digital asset investments, Umoja revealed a collaboration with the Bitcoin Layer 2 network Merlin Chain to introduce a synthetic dollar named USDb, backed by Bitcoin.

Merlin Chain is developing its native Bitcoin Layer 2 platform, which facilitates secure, scalable, and efficient transactions on the Bitcoin network and provides a strong infrastructure for projects built around Bitcoin. Since its inception, the protocol has garnered over $3.6 billion in total value locked (TVL), showcasing its ability to accommodate rapid expansion within the Bitcoin ecosystem.

USDb is a secure and high-yield synthetic dollar that maintains a fully self-sufficient peg through Umoja’s transparent, on-chain trading strategies. It operates on a mechanism that combines Bitcoin assets to generate substantial yields while preserving its peg to the United States dollar. This setup ensures stability and lucrative returns, providing users with price stability and passive income opportunities. 

The new asset will utilize Merlin Chain‘s transaction layer to capitalize on the opportunities presented by Bitcoin decentralized finance (DeFi) and leverage Umoja’s smart money functionalities.

“I chose Merlin not only for these reasons but also because the most decentralized, accessible, lowest-risk, and highest-yielding money will become the most adopted—and such money can only be built on Bitcoin,” said Robby Greenfield, founder of Umoja, in a written statement.

Umoja And Merlin Chain Collaborate To Enhance Access To Its Asset Management Tools 

Umoja is a smart money protocol that utilizes blockchain technology to enable individuals to create smart money. The integration of automated investment strategies into digital assets facilitates tokens’ autonomous trading, hedge against market volatility, and maximize yields, thereby enhancing the efficiency of financial resources for all.

Moreover, Umoja functions as a synthetic asset factory within the cryptocurrency sector, capable of generating synthesized versions of various digital assets through tokenized trading strategies known as “Synths.” These Synths produce better yield and greater protections than other cryptocurrency assets. Synths are specialized tokens designed to mimic the functionalities of traditional financial instruments and DeFi trading strategies. This is achieved through participation in derivatives trading on centralized exchanges and activities on DeFi protocols.

The collaboration between these companies will enable the partners to improve the accessibility of their asset management tools, thereby contributing to a more inclusive financial future. Additionally, USDb will be instrumental in advancing this objective.

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