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    UMA

    UMA

    Evaluation Score

    Overall rating on a scale of 0-10

    RiskReturn
    08.110
    Risk Level:
    High
    Recommendation:Speculative position only
    Evaluated:December 5, 2025 (v6)

    Crypto Token Health Score Explained

    Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.

    AI Analysis

    Comprehensive evaluation of the token

    UMA presents a compelling but high-risk investment case. The project excels in fundamental areas, boasting a highly credible team, top-tier security with a flawless audit history, and robust, active development. Its unique Optimistic Oracle carves out a distinct niche in the DeFi market. However, these strengths are severely undermined by a critical flaw in its tokenomics: extreme centralization, with over 91% of the supply held by the top 10 wallets. This concentration poses a significant risk to decentralized governance and price stability, overriding the project's otherwise strong technical and operational foundation.

    Detailed Analysis by Category

    Development Activity

    Code updates and developer engagement

    RiskReturn
    08.510

    Community Support

    Social media presence and community engagement

    RiskReturn
    07.210

    Tokenomics

    Supply, distribution, and utility

    RiskReturn
    06.810

    Market & Use Case

    Value proposition and competitive landscape

    RiskReturn
    07.810

    Team & Governance

    Team background and project governance

    RiskReturn
    09.210

    Security & Audits

    Security history and audit status

    RiskReturn
    09.210

    About UMA (UMA)

    UMA (UMA)

    UMA (Universal Market Access) is the native ERC-20 token powering the UMA Protocol, a decentralized platform on Ethereum for creating synthetic assets and self-enforcing smart contracts. UMA enables developers and users to build custom financial products—such as derivatives, margin trading, and stablecoins—without centralized intermediaries.

    Key Features

    • Governance Token: UMA holders propose and vote on protocol upgrades, parameter changes, and ecosystem grants.
    • Optimistic Oracle: A decentralized price verification mechanism that incentivizes honest data reporting via UMA collateral and dispute resolution.
    • Synthetic Asset Creation: Mint or trade synthetic tokens that track real-world assets (commodities, indices, currencies) with on-chain collateral.
    • Dispute Resolution: UMA stakers can challenge dishonest price requests, aligning network incentives for secure and reliable oracle data.

    Technical Specifications

    • Token Standard: ERC-20
    • Blockchain: Ethereum Mainnet
    • Total Supply: 100,000,000 UMA
    • Launch Date: October 2020 (initial airdrop for Uniswap LPs)

    Use Cases

    1. Protocol Governance: Vote on UMA improvement proposals and risk parameters.
    2. Collateral for Oracles: Stake UMA to back price requests and earn incentives.
    3. Ecosystem Growth: Participate in community grants, developer bounties, and liquidity mining programs.

    Resources & Community

    • Website: https://umaproject.org
    • Documentation: https://docs.umaproject.org
    • GitHub: https://github.com/UMAprotocol
    • Discord: https://discord.gg/umaproject
    • Twitter: https://twitter.com/umaprotocol

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