Introduction
What is UDX?
UDX is a platform funded by the Umee Foundation & Umee Ecosystem Fund which acts as the official institutional lending DAO of the Umee blockchain. UDX aims to facilitate and accelerate Umee’s mission of bringing the debt capital markets to crypto by offering fixed-term loans to vetted borrowers.
UDX will extend fixed-term loans to reputable DeFi protocols and crypto-focused institutions like validator service providers, custody providers, funds, and builders in order to facilitate sustainable growth and mergers and acquisitions over longer time frames. Customizable loans will provide optionality for borrowers and unique yield opportunities for lenders. As the underwriter of the loans UDX can generate revenue through loan issuance fees, OTC trading fees, and novel fee structures. All the revenue generated by UDX will be used to buy and burn UMEE tokens, as a source of value accrual of the UMEE token.
Why UDX?
The existing crypto ecosystem has countless identical platforms and products across different chains. Significant growth and consolidation is expected across the crypto ecosystem in the coming years as the market’s favorite platforms begin to acquire smaller competitors and more mergers and joint partnerships are formed.
UDX can be used to fund these types of activities by offering short and medium term debt financing without the need to rely on a centralized third party custodian. UDX will introduce time-to-maturity to crypto lending markets, allowing mature borrowers to connect with trusted lenders and investors. UDX is prepared to finance the next generation of DeFi; the high yield on-chain bond market.
