FAQ: The mUMAMI Autocompounder
The mUMAMI Autocompounder is the highest-yielding use case for the UMAMI token & one of the sweetest passive-yield plays on Arbitrum.
Here’s everything you need to know about this exciting new DeFi product from Umami Finance & Arbi’s Finance.
What is the mUMAMI Autocompounder?
The mUMAMI Autocompounder is an innovative DeFi product on Arbi’s Finance with an APY (Annual Percentage Yield) of 150%-200% on Marinated UMAMI (mUMAMI) tokens without any inflationary UMAMI token emissions.
It autocompounds mUMAMI’s ETH passive-yield rewards into more mUMAMI, setting off a flywheel of value creation for mUMAMI holders. Plus, it’s incentivized with ARBIS token rewards & fee revenue from across the Arbi’s ecosystem!
Okay… but what is mUMAMI?
The value of the UMAMI token is grounded in its foundational use case, a passive-yield product called Mariante v2.
Holders deposit UMAMI tokens into Marinate v2 with a one-month timelock & immediately begin accumulating passive-yield in ETH. The APR on ETH rewards varies depending on the price of UMAMI, but ETH yields are generally >30%-40%.
Unlike many DeFi token yields, mUMAMI rewards depositors with ETH, not inflationary UMAMI token emissions!
Where does all that ETH come from?
Umami Finance has >$6m in protocol-owned-liquidity that it has deployed across the Arbitrum ecosystem to generate >$200,000 per month in yield revenue.
Umami & its sister project, Arbi’s, also generate revenue from DeFi products, including Arbi’s growing array of autocompounders, which boost yields on farms & vaults across Arbitrum.
Anything else I should know about UMAMI?
Glad you asked!
Each UMAMI token corresponds proportionately to the >$6m in crypto assets in Umami’s treasury. Right now, each UMAMI token has a NAV (Net Asset Value) of ~$18. That means that for each UMAMI, there are around $18 worth of crypto assets in Umami’s treasury.
The UMAMI token is non-inflationary, meaning Umami does not emit more UMAMI tokens except under extremely specific circumstances.
That’s a big difference from many similar protocols, which erode their tokens’ NAV over time by emitting more & more tokens without increasing their treasury value by a corresponding amount. Because the UMAMI token is non-inflationary, the Umami team expects UMAMI’s NAV to remain roughly flat or grow over time.
UMAMI is currently trading BELOW NAV, making it one of the best bargain’s on Arbitrum!
So remind me how all this connects to the mUMAMI Autocompounder?
The mUMAMI Autocompounder takes the passive-yield generating potential of Marinate v2 to the next level!
It automatically takes those regular ETH payouts & swaps them for UMAMI tokens on Umami’s own Uni v3 LP. It immediately deposits the UMAMI into Mariante v2, so that holders get even bigger ETH rewards next time.
Don’t forget, the UMAMI token is currently trading below NAV. That means that each time ETH rewards are auto-swapped for UMAMI, holders are getting an extra-large slice of Umami’s treasury.
That’s pretty cool, but how does that get APY to >150%?
The mUMAMI Autocompounder is currently incentivised with ARBIS tokens as well as fees from across the Arbi’s ecosystem.
Between autocompounded ETH, the ARBIS token incentives & Arbi’s ecosystem fees, the mUMAMI Autocompounder is one of the hottest passive-yield plays around!
Tell me about the ARBIS token. Does it also have a good value proposition?
It sure does! The ARBIS token is the fee-generating & governance token for Arbi’s Finance, which operates a suite of autocompounders for vaults & farms on Arbitrum.
Just like the mUMAMI autocompounder, Arbi’s other autocompounders boost returns for participating holders by reinvesting yields right back into the farms & vaults they cover.
Each autocompounder generates fees, denominated in the assets that they compound, including gOHM, ETH, MAGIC & more. Half of those fees are paid out to ARBIS holders who stake their ARBIS tokens for stARBIS.
The Umami & Arbi’s team is investing heavily in Arbi’s Finance. Even more autocompounders (and fee revenue for stARBIS) are coming soon!
Umami & Arbi’s are both transitioning to DAO governance models. Soon, the ARBIS token will give holders governance rights, including over how Arbi’s autocompounders are incentivized.
Sounds great. How do I get started?
1) First, you need UMAMI tokens. Swap for them via our UMAMI-ETH pair on Uni v3.
2) Great. Now let’s get you some mUMAMI!
Hop on the umami.finance app & deposit UMAMI for mUMAMI on our “Marinate” page.
3) Now you’re ready for the mUMAMI Autocompounder. There are 2 steps:
STEP 2: Now, stake your $cmUMAMI on the same page for BOOSTED $ARBIS rewards.
You are now receiving 150%-200% APY!
4) BONUS ROUND!