Umami Finance: The Yield Protocol Powering The Future Of DeFi

Taste the future of DeFi.
A better future for finance.
  • High gas fees, especially in Ethereum Mainnet, push transaction costs into the hundreds of dollars.
  • Extreme crypto market volatility makes many promising DeFi products too risky for most investors.
  • The DeFi ecosystem’s Byzantine complexity creates an insurmountable learning curve for many potential crypto investors.
  • Fragmented cross-chain liquidity increases cost & security frictions for many asset deployments.
  • Billions of dollars in TVL (Total Value Locked) are migrating from Ethereum Mainnet to Layer 2 scaling chains such as Arbitrum. These chains integrate Mainnet’s unmatched security & decentralization but offer faster finality & far lower gas fees.
  • New protocols are simplifying cross-chain bridging & fiat <> crypto onramping. It’s now possible to frictionlessly migrate assets directly onto Layer 2 scaling chains from virtually anywhere in the world.
  • Protocol-Owned Liquidity — Protocol-owned on-chain capital is enabling long-term, strategic asset deployments & stable ecosystem liquidity.
  • On-Chain Governance — Advancements in blockchain governance structures are empowering decentralized networks of investors, developers & business innovators to coordinate to address complex challenges.
  • Trustless Capital Raising — Trustless-smart contracts allow projects to efficiently crowdsource millions of dollars in capital entirely on-chain.
  • Decentralized Derivatives — Sophisticated data Oracles are driving a proliferation of decentralized derivative products, enabling projects & investors to hedge against market risk

A Comprehensive DeFi Platform

A new era in DeFi.
  • ~$6m in protocol-owned, risk-hedged treasury assets allocated into yield-generating LaaS & farming-as-a-service (FaaS) deployments on Arbitrum.
  • A core product, Marinate v2, that generates a growing monthly stream of passive income in ETH for UMAMI token holders.
  • An affiliated project, Arbi’s Finance, that operates a suite of autocompounders that maximize yield for farms & vaults across Arbitrum.
  • An growing suite of use-cases for Marinated UMAMI (mUMAMI) tokens, including lend/borrow functionality & mUMAMI autocompounders that covert ETH passive income into high-yielding Arbitrum token rewards.
  • A platform for building & managing Liquidity Pairs on Uniswap v3, the lowest-cost & most capital-efficient Decentralized Exchange (DEX) on Arbitrum.
  • An innovative capital-raising product that crowdsources non-dilutive capital for its protocol-owned treasury from virtually any on- or off-chain account.
  • A high-yielding stablecoin vault & an Arbitrum index vault that offers focused exposure to Ethereum’s hottest L2.
  • A unique series of branded NFTs that provide utility in Umami’ ecosystem.
  • A wide & growing array of UMAMI use-cases across the Arbitrum ecosystem created in partnership with other leading Arbitrum projects.

Why Arbitrum?

One of Ethereum’s fastest-growing L2 scaling chains.

Emissions & Supply Schedule

UMAMI is a non-inflationary, low-emission token that generates value for holders via a unique passive income product, Marinate v2.

Net Asset Value (NAV)

Each UMAMI token is a claim on the Net Asset Value (NAV) of its treasury. UMAMI token’s NAV can be calculated by dividing Umami’s total treasury assets after operational expenses over the circulating supply of UMAMI tokens.

V2 Bonds

Umami’s v2 bonds are an innovative tool for crowdsourcing non-dilutive treasury capital.

Treasury Management

A growing treasury of Protocol-Owned Liquidity.
  • ~$4m in GLP, an index of major crypto-assets & stablecoings yielding ~45% APR
  • ~$350k 3S-ETH/USD & 3S-BTC/USD from TracerDAO Perpetual Pools yielding ~60% APR. The leveraged short positions, which can never liquidate, hedge out ~$1m in crypto market exposure.
  • ~$800k in ARBIS tokens, the fee-generating governance token of Arbis Finance
  • ~$200k in liquid ETH to support Marinate v2 payouts & Uniswap v3 LPs
  • ~$500k in LPs on Uniswap v3 (see “Uni v3 Platform”)

Marinate v2

Uncork for powerful passive-income.
  • ETH payments are made at nearly daily frequency. Marinated UMAMI (mUMAMI) is timelocked for 1-month.
  • Umami’s treasury allocates 50% of its fee & yield revenues to Marinators & reinvests the other 50% to increase passive income in the future.
  • Formula for APR on Marinated UMAMI: [(% Treasury APR * NAV)*(50% for Marinator payouts)]/Price per UMAMI]

Arbi’s Autocompounders

A perfect pair.
  • Circulating Supply: 14 billion
  • Incentive Reward Allocation: 10 billion
  • Team Compensation: 10 Billion
  • stARBIS Umami Treasury Holdings & ARBIS LP Liquidity: ~15 billion

mUMAMI Autocompounder

The Arbi’s mUMAMI autocompounder increases rewards for Marinated UMAMI & enhances the capital efficiency of Umami’s treasury.

  • ETH payouts to mUMAMI depositors are auto-swapped for additional mUMAMI via Umami’s Uniswap v3 LP.
  • Depositors into mUMAMI gain an increasing share of circulating UMAMI supply & a larger claim on future ETH passive-income.
  • The mUMAMI Autocompounder is currently incentivized with ARBIS token rewards & fees from Arbi’s other autocompounders. As a result, mUMAMI offers some of the highest APY of any non-emissions-based tokens.
  • The mUMAMI autocompounder produces no UMAMI emissions.
The most capital-efficient DEX on Arbitrum.

Umami Vault Strategies

Umami is preparing to launch one of the highest yielding stablecoin vaults on any chain, providing >30% APR on an array of stables including USDC, DAI & FRAX.

  • Users deposit stables, USDC, DAI & FRAX, which are used to mint GMX’s GLP index token & Tracer DAO’s 3x leveraged perpetual pool tokens.
  • Tracer tokens generate >60% APR & fully hedge against market risk from GLP index assets. GLP generates 45% APR.
  • After 1 month, depositors withdraw stablecoin principal in original token denomination & collect rewards in TCR, ETH & GMX.
  • Umami retains esGMX rewards in its treasury.

Key Value-Creation Flywheels

V2 Bonds → mUMAMI Autocompounder Flywheel

  • mUMAMI autocompounder generates mechanical buy pressure ETH → UMAMI
  • ETH → UMAMI demand pushes UMAMI price to NAV or higher
  • UMAMI at NAV enables non-dilutive bonding
  • Bonders’ deposits increase Treasury Value, Treasury yield revenue & ETH payouts to Marinators
  • Bonders’ UMAMI compensation is auto-deposited into mUMAMI compounder; ETH → UMAMI buy pressure increases
  • Added UMAMI price support enables further non-dilutive bonding
  • Arbis autocompounders direct liquidity to farms & vaults across Arbitrum via ARBIS incentive rewards.
  • Soon, the ARBIS governance token will enable its holders to influence how many ARBIS incentive reward tokens are allocated to each autocompounder.
  • Arbitrum protocols & community members acquire ARBIS tokens to gain governance influence over Autocompounder incentives
  • Voting on autocompounder incentives also requires holding mUMAMI (see: mUMAMI autocompounder flywheel)
  • Competition for ARBIS tokens (fixed supply 50bn) increases USD-value of ARBIS incentives
  • Higher USD-value incentives lead to greater competition for ARBIS tokens
  • Umami creates ETH, USDC & UMAMI paired LPs on Uni v3 for partners on Arbitrum
  • Increased trading liquidity on Uni v3 attracts more trading activity to DEX
  • Umami collects fees on all LPs, reinvests proceeds in building additional LPs, including more UMAMI paired LPs
  • Uni v3 becomes primary DEX for Arbitrum native projects, w/ UMAMI-paired LPs primary cross liquidity between projects
  • Increasing volume of Arbitrum-project token swaps & LP <> LP arbitrage trades enhance fees to Umami treasury, which are reinvested for more trading liquidity & fee revenue
  • High yielding stable vault with cross-chain bridging APIs & fiat <> crypto onramp SDKs onboards TVL to Arbitrum & surge liquidity to projects like GMX & TCR
  • Increased liquidity & TVL increase usage & fee revenue on Arbitrum ecosystem projects
  • Higher fee revenue enhances vault returns, attracting more TVL to vaults & enhancing fee revenue to Umami treasury
  • Umami mints unique NFTs with utility for mUMAMI holders via increased ETH payouts; Umami maintains NFT:UMAMI supply ratio of ~1:4 via periodic minting of new NFTs
  • Umami NFTs raise additional capital to Umami treasury via direct payments for NFTs & incentives for bonding &/or depositing LP shares to Umami’s treasury
  • Influx of non-dilutive capital to Umami treasury supports higher yield revenue & NAV for mUMAMI & enhances utility for NFTs
  • Enhanced NFT utility attracts further non-dilutive capital in subsequent mints, accelerating growth of treasury yield, UMAMI TVL & NFT utility

Partnerships

Umami actively partners with projects across Arbitrum & beyond to support the growth of the network’s ecosystem & generate returns via bespoke, yield-generating capital deployments.

Say “Hi” to Umami-chan!
Get an Inside look at Arbitrum’s fast-growing ecosystem.
A global team passionate about improving DeFi.

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