The smart contract-based wealth building protocol Umoja is putting its plans into action today with the launch of USDb, a first of its kind, Bitcoin-based high-yield synthetic dollar that’s hosted on the Bitcoin Layer-2 network Merlin Chain.
Umoja is a new and very innovative project that aims to transform idle crypto capital into dynamic, self-enhancing smart assets that leverage the same kind of wealth building tools previously only available to institutional investors.
It’s pioneering the concept of tokenized trading strategies known as “Synths”, which are easily accessible and highly sophisticated financial instruments, such as delta-neutral stablecoins and hedged assets. These instruments are used by investment banks, hedge funds and the like to consistently grow their investment profiles, and have always been somewhat exclusive. By tokenizing these strategies in its Synths, Umoja ensures anyone can leverage them. Through its Synths, Umoja’s smart money protocol aims to minimize losses and maximize returns for investors, making it safer and easier for average people to grow their wealth.
Led by Robby Greenfield, the ex-head of social impact at ConsenSys, Umoja’s mission is to give anyone the opportunity to become more prosperous. It might be a tired old cliche, but the plan really is to create a more inclusive financial world.
USDb is destined to become a key element for Umoja as it strives to achieve that goal. It’s the crypto industry’s first-ever principled and protected high-yield synthetic dollar, with its value supported by the protocol’s sophisticated tokenized DeFi trading strategies, setting it apart from other stablecoin assets that are backed by collateral or reliant on algorithmic mechanisms to maintain their U.S. dollar price parity.
According to Umoja, USDb is designed to pool Bitcoin assets and generate high yields via DeFi investments, delivering the stability of the most reliable stablecoins along with the prospect of significantly high returns on investment. So high, in fact, that Umoja believes USDb could potentially deliver a payback that’s much higher than traditional stablecoin liquidity pools.
The asset is built on Merlin Chain, which enables it to leverage the nascent DeFi capabilities of Bitcoin itself. Merlin Chain is a BTC L2 network that adds smart contract capabilities to, and scales Bitcoin to handle much greater transaction volumes and speeds, and it has already attracted $3.6 billion in total value locked since launching its testnet in January.
Greenfield said it made perfect sense to build USDb on Merlin Chain, as the two projects share a similar vision and, like Umoja, it has fostered a vibrant community that believes in the potential of Bitcoin-native DeFi.
Umoja’s smart money protocol is targeted at crypto enthusiasts, degens and retail investors, as well as Bitcoin maximalists, and aims to kickstart a new financial renaissance by kick-starting the democratization of wealth creation tools.