Umee raised $ 32 million from community members who crammed into the Channel Hopping Network’s UMEE token ahead of the Mainnet’s launch, slated for mid-February 2022.
Umee set a CoinList record with 922,000 wallet records, although only 64,000 ultimately bought, CoinList chief sales officer Mike Zajko told CoinDesk.
The flexible base layer of decentralized finance (DeFi), which works well with protocols designed for Ethereum as well as its native Cosmos, closed the sale of CoinList earlier this month, CEO Brent Xu told CoinDesk.
Xu, a former bond trader who switched to full crypto in 2016, said Umee is focused on redpilling the global market for “inefficient” $ 200 trillion debt. He will therefore focus on supporting projects in the DeFi borrowing and lending segment.
“There is no other team that knows so much about [bonds] and so Umee is really in this nice Venn diagram of being able to fit a potentially huge market into DeFi, ”he said.
Plans for Umee
Umee’s plan of attack begins with “rebuilding the debt infrastructure” to make the “base layer” more agile. Xu said his team is working on tools that help define how the “money legos” in his network handle global debt.
It will take time for the big debt players to take advantage of the radical transparency of blockchain. In February, Xu expects Umee to play almost exclusively in front of his crowd of crypto natives. But as the team begins to develop features on top of Umee’s proof-of-stake consensus mechanism, he believes the market at large will take notice.
This is because the massive debt market is, according to Xu, extremely inefficient in all the ways DeFi excels. Cross-chain communicating smart contracts remove the many bureaucratic steps involved in processing prepayments, for example.
“We want to build this universal debt hub that interacts with all the different networks,” he said, naming base layers like Solana and scaling solutions like Optimism and Arbitrum as targets for the growth of Umee.
All of this will take time and money. Umee’s new funds will finance teams of engineers, as well as legal and compliance officers. In five years, Xu believes that the debt market migration will have started to happen “naturally”.
It will also require tact. Umee, like many early stage blockchain projects, operates as a centralized entity. But Xu said he is committed to gradual decentralization.
Umee prepares DAOs for the main network, seeks community interactions and will ultimately transfer power from the network to a decentralized governance model.
“One of the goals of getting as many as 64,000 new token holders is to create a community,” Xu said.
For now, Umee’s validators are grappling with the burn-it-down mentality that many testnet projects adopt to eliminate code loopholes and harden for launch. “They are trying to destroy each other,” Xu said. “We are being prepared. “