The low-profile altcoin soared nearly 210% from Thursday to Friday this week after the project hinted at the launch of a new crypto solution.
UMA is An optimistic oracle and dispute arbitration system intended to act as a “decentralized truth machine”.
The crypto asset, which ranks 156th in terms of market capitalization, was trading around $2.01 on Thursday, but its price soared to a high of $6.22 on Friday, a staggering 209.45% increase. became.
The token has since partially regained value and is trading at $4.51 at the time of writing.
The asset's huge gains materialized as UMA heralded a new product that would “recapture” the tens of millions of dollars that lending protocols lose every year, up to maximum extractable value (MEV).
Neither the project nor its founders have revealed many details about future developments.
“Next week, UMA will launch something that will spectacularly recover the more than $100 million in free funding lost to MEV each year.”
MEV states that it is a strategy to squeeze as much additional profit as possible from the generation of new blocks (excluding gas fees and block rewards) by tinkering with the order of transactions. Binance Academy.
Explaining Binance,
“Block producers are in the best position to do this because they can select and order transactions.
However, other network participants (called searchers) can also trade for a fee if they find MEV opportunities, such as arbitrage, frontrunning, or liquidation. MEVs are most commonly found in smart contract-enabled networks where blockchain transactions contain more complex information. ”
Never miss a beat – Subscribe to get email alerts delivered straight to your inbox
Check price action
follow me twitter, Facebook and telegram
Surf the Daily Hoddle Mix
 
Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated image: Mid Journey
