Introducing: The mUMAMI Autocompounder
The Umami Finance team is excited to unveil an innovative DeFi product that will greatly enhance returns for Marinators & help catalyze a powerful flywheel of positive UMAMI price action & non-dilutive capital raising for Umami’s treasury.
Introducing: The mUMAMI Autocompounder.
Starting next week, the mUMAMI Autocompounder will go live on Arbi’s Finance. UMAMI holders who are currently Marinating their UMAMI will be given the option of unlocking their mUMAMI early to move it to the autocompounder. They are also welcome to keep on Marinating as before!
The Basics Of The mUMAMI Autocompounder
The mUMAMI Autocompounder will automatically collect near-daily ETH rewards for its depositors & swap it for more mUMAMI via Umami’s UMAMI-ETH LP on Uniswap v3.
That means that depositors into the mUMAMI autocompounder will rapidly increase their mUMAMI holdings & gain a larger claim on Umami’s growing stream of ETH payouts.
The mUMAMI Autocompounder will also be incentivized with ARBIS tokens to further boost APY!
Once unleashed, the Umami team expects the mUMAMI autocompounder to set off a flywheel of value creation that will support positive UMAMI price action back up to NAV (~$19 per UMAMI), enable a highly-successful launch of UMAMI v2 Bonds & generate enormous value for the ARBIS token & the Umami community!
The mUMAMI autocompounder is part of a broader revamp of Arbi’s Finance that will increase fee revenue to Umami’s treasury & to holders of stARBIS, the staked ARBIS token. Learn more about the plan here.
How The mUMAMI Autocompounder Works
- mUMAMI deposited into the Autocompounder will be timelocked for 1 month, just like regular mUMAMI deposits.
- Depositors into the mUMAMI autocompounder gain immediate access to near-daily ETH reward payouts from the Umami treasury.
- The ETH rewards are auto-swapped for UMAMI via Umami’s Uni v3 LP & then redeposited to Marinate to compound future ETH rewards.
- The UMAMI accumulated by autocompounder depositors will come entirely from UMAMI’s existing circulating supply. There will be no new emissions of UMAMI for the autocompounder!
- The autocompounder will be incentivized with ARBIS rewards. Umami’s devs are working on smart contracts to allow these rewards to be autocompounded as stARBIS, which collects fees from all of Arbi’s autocompounders.
By compounding mUMAMI & stARBIS rewards, the mUMAMI Autocompounder will generate unprecedentedly high APY for depositors!
The First Turn Of The Flywheel: Accelerating Umami’s Price to NAV
- Depositors into the mUMAMI autocompounder gain an ever-increasing share of UMAMI circulating supply; since there will be no new UMAMI emissions for the compounder, available UMAMI will become increasingly scarce.
- Meanwhile, ETH payouts to mUMAMI depositors will be recycled to the Umami treasury via Umami’s UMAMI-ETH LP & added to subsequent payouts to Marinators!
- Larger ETH Payouts → More UMAMI Purchased Via Autocompounder → Scarcer Circulating Supply of UMAMI
- We all know what scarcer supply & compounding demand mean: Highly favorable price dynamics for UMAMI, hastening the return of UMAMI’s price to its NAV!
The Second Turn Of The Flywheel: Non-Dilutive v2 Bonding
- Once UMAMI returns to NAV (~$19), the Umami team will launch Umami’s v2 Bonds. Bonds will be equipped with Socket APIs & a Banxa SDK allowing them to be acquired from any chain & even from fiat accounts!
- The bonds are issued at a discount of ~10% to NAV, & then deployed via Umami’s treasury, which generates >45% APR. That means rapidly increasing treasury revenues & even higher ETH payouts to Marinators!
- Bonders receive mUMAMI, which will be automatically deposited into the mUMAMI Autocompounder.
Non-dilutive UMAMI v2 Bonds accelerate the value-creation flywheel at a compounding rate. More v2 bonding → more autocompounding mUMAMI & larger ETH payouts to Marinators → more demand/price support for UMAMI enabling bonding to continue apace!
The Third Turn of The Flywheel: The ARBIS “CRV Wars”
Arbi’s Finance is one of Umami’s most strategic assets, commanding an expansive & growing suite of Autocompounders for farms & vaults across Arbitrum. Umami’s treasury holds >60% of total ARBIS supply & it collects more than half of the fees from Arbi’s autocompounders.
Current Autocompounders include:
Soon, Arbi’s aims to launch autocompounders for DPX farms, JONES farms & of course, mUMAMI!
Umami is also building ARBIS-ETH & ARBIS-UMAMI LPs on Uniswap v3, generating more fees for Umami’s treasury & greatly-enhancing ARBIS trading liquidity. Plus, it is using Socket & Banxa’s infrastructure to enable the Arbi’s autocompounders to seamlessly onboard TVL from other chains & fiat accounts!
But that’s just the start.
In the coming weeks, the Umami team will transform the ARBIS token into the governance token for Arbi’s autocompounders. Holders of stARBIS will have a direct say in the allocation of ARBIS incentive emissions to Arbi’s autocompounders, establishing ARBIS as a powerful tool for directing liquidity across Arbitrum!
Note: To vote on autocompounder incentives, ARBIS holders must stake their ARBIS & also hold some mUMAMI. This will ensure incentive alignment between our ARBIS & UMAMI communities!
The Umami team believes that empowering ARBIS holders with governance of Autocompounder incentives will set off yet another self-sustaining flywheel of value-creation!
- Arbi’s launches more autocompounders to support Arbitrum projects & continues to onboard liquidity & allocate it across the network.
- ARBIS token governance rights create a strong incentive for Arbitrum ecosystem participants to accumulate stARBIS & direct ARBIS incentives to their favorite projects.
- Competition for ARBIS tokens increases the USD price of ARBIS → ARBIS incentives become even more valuable & demand for ARBIS tokens accelerates!
Buckle up, Umamies. It’s Launch Time!
So what’s this mean for you, our UMAMI & ARBIS holder community?
The Umami team expects the mUMAMI autocompounder to be one of the most robust tools for value-creation on Arbitrum, driving migration of TVL to the network & greatly enhancing returns for ARBIS & UMAMI holders!
By depositing into the mUMAMI Autocompounder, which will go live next week, mUMAMI holders will:
- Rapidly compound their holdings of mUMAMI, increasing their claim on Umami’s treasury & on ETH payouts to Marinators.
- Set off a flywheel for v2 bonds that accelerates positive price action for UMAMI, increases the UMAMI token’s NAV & further boosts ETH payouts to Marinators.
- Accumulate compounding ARBIS token rewards during the early days of Arbi’s Finance’s transformative relaunch.
Those of you reading this today are first-movers into a highly value-generative new DeFi model. The Umami team is working full time, every day, to ship incredible new products & make Umami’s vision a reality.
So buckle up, friends. It’s launch time.