Umee is a cross-chain DeFi platform that can be interlinked between blockchains. As a base layer DeFi protocol, developers can build application ecosystems on top of Umee. Umee blockchain uses Tendermint Proof of Stake consensus protocol to facilitate instant interoperability with the Cosmos ecosystem, Ethereum network, side chain architecture, Layer 2, and alternative base Layer protocols to help users achieve cross-chain lending.

Umee used the Cosmos SDK to build the base-layer lending protocol, allowing developers to design, build, and deploy their own custom debt tools. The Umee architecture is a deep blend of modular and scalable design, and these tools have been experimented with and iterated to achieve a more optimized lending interface across the blockchain.

Instead of directly transferring tokens between different networks like most cross-chain Bridges, Umee iterates the design of its UTokens. And allows users to borrow locally on the chain without introducing any additional base-level dependencies.

uToken and meToken are the two subordinate tokens designed for this project. Utokens are collateral tokens that lenders receive and hold to earn interest. They lend the asset, they get interest. UToken represents the assets lent and the interest earned by lending the assets. Users who lock up their own assets in Umee will receive meToken. The value of the meToken is the sum of the asset value and the reward for lock-up returns.

With the launch of IBC cross-chain function and the gradually access of several star projects, the multi-chain ecology built based on Cosmos has begun to take shape. Umee will have a wider range of usage scenarios and applications.