KUMA Protocol by Mimo: NFTs and Interest-Bearing Tokens Backed by Bonds

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Decen­tral­ized Finance Inno­va­tor Mimo is launch­ing “KUMA Pro­to­col”: the first DeFi pro­to­col issu­ing tokens backed by reg­u­lat­ed NFTs, them­selves backed by sov­er­eign bonds. This launch comes as the FMA (Finan­cial Mar­ket Author­i­ty Liecht­en­stein) has approved Mimo for pro­vid­ing blockchain-relat­ed ser­vices since Jan­u­ary 2022.

KUMA tokens, built as a smart con­tract com­pat­i­ble with most blockchains, are designed to pro­vide hold­ers with a reli­able source of pas­sive income through the accru­al of inter­est on their holdings.

KUMA Tokens are NFTs rep­re­sent­ing bonds that KUMA Gen­er­a­tor (a decen­tral­ized prod­uct owned by KUMA DAO and gov­erned by the MIMO token­hold­ers) can accept as a back­ing to issue KUMA Inter­est-Bear­ing Tokens, a form of syn­thet­ic sta­ble­coins that auto­mat­i­cal­ly accrue inter­est. The bal­ance of these tokens grows in users’ wal­lets with­out any action required, match­ing the inter­est rate paid by the bond back­ing them, minus com­mis­sion. Apart from the inter­est, the tokens behave like reg­u­lar sta­ble­coins, allow­ing them to be inte­grat­ed freely into the broad­er cryp­to ecosys­tem, like DeFi, Game­Fi, and NFTs platforms.

The launch of this pro­to­col also has the poten­tial to rev­o­lu­tion­ize the way bond­hold­ers receive inter­est. Tra­di­tion­al bonds typ­i­cal­ly pay out inter­est semi-annu­al­ly, annu­al­ly, or even when reach­ing mat­u­ra­tion. How­ev­er, because KUMA Inter­est-Bear­ing Tokens use smart con­tracts, inter­est can be paid out to hold­ers reg­u­lar­ly, every 4 hours by default, pro­vid­ing a more con­sis­tent income stream for investors while not involv­ing any claim process.

In the back­ground, Mimo Cap­i­tal AG han­dles the bonds and offers sim­ple redemp­tion to the users. More­over, a smart con­tract man­aged by the KUMA DAO pro­vides infra­struc­ture for its com­mu­ni­ty to swap or roll the NFT bonds over, ensur­ing smooth oper­a­tion when a bond reach­es its matu­ri­ty date or the issu­ing author­i­ty pub­lish­es an updat­ed rate.

To date, a few oth­er efforts of bond tok­eniza­tion have start­ed. How­ev­er, Mimo has the advan­tage of being the first reg­u­lat­ed in the Euro­pean Eco­nom­ic Area (EEA), pro­vid­ing tokens allow­ing its users to earn inter­est while ben­e­fit­ing from the safe­ty of their favorite cus­tody solu­tion and the peace of mind com­ing with a ful­ly reg­u­lat­ed product.

Fur­ther­more, KUMA DAO’s approach nat­u­ral­ly pro­vides frac­tion­al­ized access to the ben­e­fits of bonds, low­er­ing the entry bar­ri­er to invest­ment and open­ing the door to 24/7 set­tle­ment, trad­ing, and glob­al liq­uid­i­ty. Exam­ple appli­ca­tions include sav­ings accounts, pro­to­col trea­suries, and indi­vid­ual wallets.

Fol­low­ing the tok­eniza­tion of sov­er­eign bonds, Mimo will lever­age KUMA to pro­vide oth­er assets, such as cor­po­rate debt and funds.

So far, all of the Mimo part­ners, includ­ing Poly­gon, Fan­tom, Swiss­borg, Sin­gu­lar­i­ty­DAO and Akt.io have indi­cat­ed their inten­tion to use KUMA.

We are thrilled to offer our users a new way to earn pas­sive income through tok­enized bonds,” said Claude Eguien­ta, Founder and CEO of Mimo Cap­i­tal. “With this inno­v­a­tive mech­a­nism and backed by a diverse range of real-world assets, we believe that inter­est-bear­ing tokens are poised to become a lead­ing tool in the Decen­tral­ized Finance space.

To learn more about Mimo and the KUMA Pro­to­col, vis­it mimo.capital & kuma.bond.

About Mimo

Mimo is a lead­ing blockchain com­pa­ny that built a mul­ti­chain DeFi pro­to­col pro­vid­ing a Decen­tral­ized & Mul­ti­chain Euro Sta­ble­coin and devel­op­ing Blockchain Pow­ered Finan­cial Prod­ucts. With a focus on user-friend­li­ness and acces­si­bil­i­ty, Mimo is com­mit­ted to bring­ing the ben­e­fits of decen­tral­ized finance to a broad­er audi­ence, includ­ing busi­ness and retail investors.

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