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Podcast: Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies
Episode: Allison Lu: UMA – The Open Financial Platform for Building Synthetic Assets
Description: UMA, or Universal Market Access, is an open source financial contracts protocol for building synthetic assets. It allows any two counterparties to design and create their own financial contracts for derivatives. An example of these assets in the traditional finance world, are interest rate derivatives. These are used to hedge against fluctuations in currency exchange rates. Today, interest rate derivatives are commonly used and the contracts to create these are standardized. Similarly, UMA allows anyone to create a derivative on a blockchain. Enforcement of agreement will be enforced by the network and so will settlement.What’s un...