Decentralized Finance Innovator Mimo is launching “KUMA Protocol”: the primary DeFi protocol issuing tokens backed by regulated NFTs, themselves backed by sovereign bonds. This launch comes because the FMA (Financial Market Authority Liechtenstein) has authorized Mimo for offering blockchain-related providers since January 2022.
KUMA tokens, constructed as a wise contract appropriate with most blockchains, are designed to offer holders with a dependable supply of passive revenue by way of the accrual of curiosity on their holdings.
KUMA Tokens are NFTs representing bonds that KUMA Generator (a decentralized product owned by KUMA DAO and ruled by the MIMO tokenholders) can settle for as a backing to concern KUMA Interest-Bearing Tokens, a type of artificial stablecoins that robotically accrue curiosity. The stability of those tokens grows in customers’ wallets with none motion required, matching the rate of interest paid by the bond backing them, minus fee. Apart from the curiosity, the tokens behave like common stablecoins, permitting them to be built-in freely into the broader crypto ecosystem, like DeFi, GameFi, and NFTs platforms.
The launch of this protocol additionally has the potential to revolutionize the best way bondholders obtain curiosity. Traditional bonds sometimes pay out curiosity semi-annually, yearly, and even when reaching maturation. However, as a result of KUMA Interest-Bearing Tokens use good contracts, curiosity may be paid out to holders frequently, each 4 hours by default, offering a extra constant revenue stream for buyers whereas not involving any declare course of.
In the background, Mimo Capital AG handles the bonds and presents easy redemption to the customers. Moreover, a wise contract managed by the KUMA DAO offers infrastructure for its neighborhood to swap or roll the NFT bonds over, making certain clean operation when a bond reaches its maturity date or the issuing authority publishes an up to date fee.
To date, a number of different efforts of bond tokenization have began. However, Mimo has the benefit of being the primary regulated within the European Economic Area (EEA), offering tokens permitting its customers to earn curiosity whereas benefiting from the security of their favourite custody resolution and the peace of thoughts coming with a completely regulated product.
Furthermore, KUMA DAO’s strategy naturally offers fractionalized entry to the advantages of bonds, decreasing the entry barrier to funding and opening the door to 24/7 settlement, buying and selling, and international liquidity. Example functions embrace financial savings accounts, protocol treasuries, and particular person wallets.
Following the tokenization of sovereign bonds, Mimo will leverage KUMA to offer different property, reminiscent of company debt and funds.
So far, the entire Mimo companions, together with Polygon, Fantom, Swissborg, SingularityDAO and Akt.io have indicated their intention to make use of KUMA.
“We are thrilled to supply our customers a brand new method to earn passive revenue by way of tokenized bonds,” stated Claude Eguienta, Founder and CEO of Mimo Capital. “With this revolutionary mechanism and backed by a various vary of real-world property, we consider that interest-bearing tokens are poised to change into a number one software within the Decentralized Finance area.”
To study extra about Mimo and the KUMA Protocol, go to mimo.capital & kuma.bond.
About Mimo
Mimo is a number one blockchain firm that constructed a multichain DeFi protocol offering a Decentralized & Multichain Euro Stablecoin and growing Blockchain Powered Financial Products. With a deal with user-friendliness and accessibility, Mimo is dedicated to bringing the advantages of decentralized finance to a broader viewers, together with enterprise and retail buyers.
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