A quick glance at some of the available online available available shows that the Global Structured Finance market, with a value of $ 1.4 trillion in 2024, is expected to reach $ 2.6 trillion in 2030. In short, structured financing, the practice of creating new monetary instruments includes bundling different financial assets and repairing them for investments – they have their risk ratios more seamlessly.
Within this broader context, because digital assets have continued their marchs in the direction of the mainstream acceptance, structured solutions for finances have increasingly begun to become more important in tackling some of the continuing challenges that have hindered their growth, especially from a Defi -position point.
The yield volatility, for example, has remained a considerable deterrent for institutions that are looking for predictably returns. Until now, during 2022, the annual percentage of return (APY) for USDC has fallen by 65%, from 3.2% to only 1.14% by the end of the year. This pattern would repeat over the landscape, with strategies that offer returns up to 20% during expansive periods only to collapse during market contractions.
Capital in efficiency is another problem that has worsened these problems, with overcollateralization requirements often more than 150%. Even when it comes to liquidity distribution, popular platforms such as Uniswap V3 are still witnessing more than 90% of their trading activity over only 50% of their Polish, while Curve sees 90% of his trade volume in only 10% of Polish.
As would be expected, these inefficiencies have created considerable barriers for potential participants, something that is reflected in Defi’s somewhat stagnant total value (TVL) – which has not yet reached its 2022 highlights, although it was approaching $ 130 billion at the end of last year.
Discover the missing link in the evolution of Defi
In the light of the challenges described above, it is worth noting that the traditional financial (traditional (traction FI) sector has long tackled comparable challenges through structured instruments such as collateral debt obligations (CDOs), effects covered by mortgage (MBS) and credit institutions (CDS).
These advanced mechanisms not only help to diversify risks, stabilize the yields and improving capital efficiency, but also help set up a more accessible financial ecosystem for different participants. Within this battle, Umoja has emerged as a pioneer, so that these structured solutions are brought to the fast -growing Defi -Rijk.
To start with, Umoja is supplied with an asset-hedging protocol designed to simplify risk management and to automate in multiple cryptocurrencies, Fiat and Tokenized Real-World assets (RWAS). In addition, the automatic hedge mechanism of the Protocol allows participants to implement tailor -made strategies that are tailored to their specific risk exposures, which protects assets against depreciation and liquidation risks without active management.
By reducing colland requirements up to 10 times and reducing the coverage costs by around 80%, Umoja improves capital efficiency dramatically compared to traditional methods. In this respect, the innovative ‘hedge token’ system of the Platform Market loss represents, which means that users can enter or leave cover positions with minimal friction, which improves liquidity and flexibility.
Users can even select a covering fund, pay a reimbursement, offer repayable collateral and receive tokens that represent their market loss coverage. If that was not enough, Umoja will maintain an insurance pool that is financed by user costs to offer pro-rata payments in the case of considerable decline, which further strengthens the structured financing framework.
Finally, the team brings solid expertise behind Umoja. Under the leadership of CEO Robby Greenfield IV, a double founder and former head of social impact at Consensys, the project is supported by a strong network of investors, including Coinbase Ventures, Mercy Corps Ventures and 500 Global.
And with $ 2 million picked up, an Alfa version launched and important partnerships that have been founded with players such as Chainlink, Umoja seems to be perfectly positioned to bring about a revolution in the risk management landscape of Defi.
Building the foundation for institutional defi -adoption
Looking from outside, the increase in demand for crypto solutions in Trade-Fi-style seems to adapt to the wider market, especially with reports that show that. 36% of American adults have had to take on different sides to make ends meet – with a considerable part of these persons looking for passive income through dividend Investment, rental income and crypto institution to supplement their lifestyle.
The goodness offer of Umoja meets these requirements with minimal hands-on involvement of its users. Therefore, while the Defi sector continues to exist on its path of upward evolution, structured financial principles are becoming more and more essential to transform space into a more stable, efficient and accessible financial system.
