Umami Finance ($UMAMI) is a Arbitrum DeFi strategy-based yield generating vaults project supporting $USDC, $BTC and $ETH as its underlying assets.
All of its DeFi products source yield from reliable on-chain revenue streams, not inflationary native token emissions. They safeguard against market volatility using innovative on-chain hedging strategies.
Umami's vaults are built using trustless, non-custodial smart contracts hosted on Arbitrum, Ethereum's leading Layer 2 scaling chain. Arbitrum is an Optimistic Rollup that inherits Mainnet's security & decentralization while dramatically reducing transaction costs and latency.
Umami's smart contract code has been audited by Zokyo. Its vaults are insured by Risk Harbor and have been carefully backtested using Monte Carlo models developed by Balance, and AI-driven wealth management platform.
At the apex of the Umami ecosystem is its native token, $UMAMI. Stakers of the $UMAMI token receive a share of protocol revenue, denominated in $ETH, from its vault fees. The $UMAMI token has a maximum supply of 1,000,000, the majority of which is already in circulation.
UMAMI is also the governance token of Umami DAO. Umami DAO is the community-led Decentralized Autonomous Organization that governs the Umami protocol. Through its off-chain proxy, Umami DAO Foundation, the DAO contracts with U.S.-based Umami Labs LLC for engineering and business development support.
$UMAMI is the protocol's governance and fee-generating token. It has a fixed Max Supply of 1,000,000 and can be staked for a share of Umami's protocol revenues.
Umami offers tokenholders two staking options, both of which require them to remain staked until the end of a monthly "epoch." The first, Marinate, offers a direct share of protocol revenues in $ETH. The second, Compound, automatically reinvests $ETH rewards to market buy and re-stake more $UMAMI. $UMAMI is not an emissions token. No new $UMAMI tokens can be minted beyond its 1,000,000 Max Supply (of which around 650,000 are already in circulation).
About 125,000 non-circulating $UMAMI are permentently locked in defunct staking contracts and effectively "burned." The remainder are held in Umami's treasury and are reserved for future team compensation, liquidity for its primary $UMAMI-$ETH Uni v3 LP, potentially very limited OTC capital raises.
Umami hold around $5 million in Protocol-owned Liquidity (PoL), which generates yield revenue to cover Umami's OpEx, bolsters its $UMAMI-$ETH LP and provides seed liquidity for its vaults. Umami has allocated ~20% of its total token supply to support current and future team comp.