Umee is a cross-chain DeFi hub that connects different blockchains to each other. As an underlying blockchain, applications and currencies can be built directly on top of it to gain cross-chain leverage and liquidity.

Umee plans to break down the inherent islands between blockchains by leveraging bridging solutions that connect them and encouraging better capital efficiency. The ultimate goal will be to achieve cross-chain lending, multi-chain pledge and entrustment, and cross-chain DEFI rates.

There are three main problems in DeFi: 1) Independent rate of return; 2) Concentrated systemic risk and 3) isolated capital problems.

In the long term, Umee will act as a cross-chain DeFi hub, connecting various ecosystems and developing new financial products on top of it. Umee will integrate tools such as Layer 2 extension solutions, side chain architectures, tools from the aggregate ecosystem, and alternative base layer protocols for connecting blockchain networks. In Umee's DeFi Hub, Umee has been experimenting with interest rate tools and other new financial primitives that will serve as infrastructure for the growing crypto world.

1. Verifier infrastructure Umee adopts Tendermint BFT Consensus, Pos mechanism allows verifiers to get block rewards through pledge. 2. Network fees and Proof of Equity Consensus Verifier Infrastructure providers will earn network fees in the form of UMEE tokens. 3. Protocol governance Native UMEE tokens are also a protocol governance token used to facilitate on-chain governance of the UMEE blockchain.

Verify that nodes participate in network consensus and receive token rewards.

1. Umee's innovation is reflected in the design of its Universal Debt Instrument, a base-tier lending protocol built using the Cosmos SDK that allows developers to design, build and deploy their own custom debt instruments. The Umee architecture combines a deep modular and scalable design, allowing for future iterations of sovereign loan pools and innovative DeFi debt markets. These tools are tested and iterated to allow more optimized lending interfaces across the blockchain. 2. Asset coordination Protocol Umee realizes its cross-chain debt function through the innovation of its lending position, which can deliver users' positions universally across platforms and blockchain. Rather than move crypto assets directly, as many bridge projects do, Umee iterates on its uToken design and allows users to reliably borrow locally on the blockchain without introducing any additional base-layer dependencies. While a Staking mechanism is the cornerstone of any Proof of Stake blockchain, Umee takes it one step further and extends it to the core feature of its lending protocol design: metokens. MeTokens represent interest positions that participate in another blockchain proof-of-stake consensus mechanism. These can be used as collateral by Umee in order to take a loan position on any other chain. MeToken allows a seamless transition from pledge to loan, while allowing the proof-of-interest rate to pay interest on the loan. This mechanism allows Umee's lending function to achieve maximum capital efficiency and yield generation while contributing to the security of the corresponding POS blockchain. 4. Yield curve and pledge curve as base layer debt agreement, Umee blockchain will create yield curve for crypto assets. Similar to the time value of currencies in TradFi, Umee will establish an interest rate term structure to define the time value of cryptocurrencies. The proof-of-claim duration is captured in the protocol to determine the opportunity cost across the encryption time range. Using a combination of proof-of-interest rates, DeFi rates and debt primitives, the Umee blockchain will build the infrastructure to bring the global debt market into cryptocurrencies.

Umee blockchain is fast, cheap to use, highly scalable and interoperable with other blockchains. Umee is built on Tendermint's BFT Consensus agreement. This means Umee is able to close transactions quickly while maintaining security. The underlying consensus protocol utilizes a set of binding validators and slash conditions to maintain network security. In addition, Umee uses the IBC (Inter-blockchain Connectivity) protocol to connect fast termination networks. IBC is a Layer 0 protocol that allows interoperability between all PoS blockchains by implementing standardized communication algorithms.

Umee is a multi-chain hub that allows its users to borrow/borrow crypto assets from blockchain to blockchain. Thus, Umee competes with lending programs and DeFi centers, such as Aave, Compound, Raydium, PancakeSwap, etc.

Umee promotes capital efficiency because the platform allows users to leverage their collateral assets across chains. In addition, the platform allows users to pledge tokens on other chains. One might say that Umee is "the Aave of Cosmos".

The development of Umee depends on the prosperity of Cosmos ecology, and the possible risk comes from the stall of Cosmos ecology development at the bottom.

Umee is an emerging blockchain platform with certain advantages in cross-chain lending.