# Umee

By [HappyGiZ](https://paragraph.com/@rex3rection) · 2022-12-24

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There are a lot of rumors about the Umee project, some people believe that this is a scam project, others say that this is a project closely monitored by funds, and the coin will be able to reveal itself after the expansion of the Cosmos ecosystem in web3.

I must say right away that this article is not about making money on speculation in a week / month / half a year. Here we will try to analyze the fundamental level of the mind and understand how this project can be promising for investment for those who are interested in the space network.

First of all, it is worth evaluating the composition of the project investors. Here we see Polychain capital, Algorand, Stake-fish, Cosmostation, in my opinion, for a Cosmos hub this investors are very serious.

If we look on the official page of [https://umeeversity.umee.cc/](https://umeeversity.umee.cc/) and Umee whitepaper we can know what Umee is a Layer 1 permissionless blockchain built on the Cosmos SDK, allowing for the development of DeFi primitives and for users to access cross-chain leverage and liquidity. It will encourage better capital efficiency and allow users to collateralize staked assets on one blockchain towards borrowing assets on another blockchain by using inter-blockchain communication protocol (IBC) from the Cosmos ecosystem. As a Cosmos SDK blockchain, the protocol is interoperable with other blockchains in the Cosmo ecosystem to provide enhanced latency, improved scalability and diversified risk from centralized bridges.

But not only will Umee allow users to simply lend and borrow assets across blockchains but it will also allow users to collateralize staked assets on one blockchain (e.g. Cosmos) to borrow assets from another blockchain (e.g. Ethereum). Once the borrower deposits sufficient collateral they will be able to borrow assets from Cosmos or Ethereum blockchains. This would be done by utilizing the uToken collateral token that is used as collateral asset when borrowing on another blockchain. Similar to Aave, users will receive minted uTokens for depositing assets into the smart contract that map 1:1 with the asset deposited. The balance of the user’s uTokens will then grow as the underlying interest rate is applied to the deposits.

In the summary we can see that Umee is the project, which wants to make EVM networks and Cosmos hub closer to each other. And this is amasing! Cosmos is one of the most technological chains in my opinion, and EVM chains a mostly hyped blockchains for now, so Umee brings the Cosmos hub 1 step closer to be the most usable blockchain in the web3. Thank you Umee!

It’s not a financial recommendation! Thank you for your time!

Also, check all the socials of Umee:

[https://medium.com/umeeblog](https://medium.com/umeeblog)

[https://twitter.com/Umee\_CrossChain](https://twitter.com/Umee_CrossChain)

[https://discord.com/invite/umee](https://discord.com/invite/umee)

[https://github.com/umee-network](https://github.com/umee-network)

[https://t.me/umeecrosschain](https://t.me/umeecrosschain)

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*Originally published on [HappyGiZ](https://paragraph.com/@rex3rection/umee)*