Mimo is a leading blockchain company which JDC readers probably already know. Indeed, we have regularly spoken to you about “PAR” token, euro stablecoin algorithmic, decentralized and multi-chain developed by this team as an extension of the precursor project TenX. This innovative decentralized finance Mimo today launches the KUMA Protocol, the first DeFi protocol to issue tokens backed by regulated NFTs derived from sovereign bonds.
Kuma, a new Mimo innovation with the DeFi seal
The launch of the KUMA protocol represents an important milestone for Mimo and the entire DeFi space. He is done the first and only protocol to issue tokens of interest backed by
traditional fixed income products. This is a new investment option for those looking to diversify their savings outside of strict cryptocurrencies while remaining within the blockchain ecosystem. Essential diversification in a generally difficult economic environment and a recession that many predict is imminent.
KUMA tokens are designed to become a reliable source of passive income through the accumulation of interest on their holdings. They are his NFTs built like many smart contracts, and compatible with most blockchains. They represent bonds held by KUMA Generator, a decentralized protocol owned by KUMA DAO and governed by MIMO token holders.
background, Mimo Capital AG manages bonds and offers simplified redemption for users. Also, a smart contract operated by KUMA DAO provides its community with the necessary infrastructure for the free circulation of these bonds. This ensures smooth operation when a bond matures or when the issuing authority publishes a discount rate.
We are excited to offer our users a new way to earn passive income through tokenized bonds. Thanks to this innovative mechanism and […] Backed by a diverse range of real-world assets, we believe tokens of interest are poised to become a major tool in the decentralized finance space.
Claude Eguienta, founder and managing director of Mimo Capital.
The launch of this protocol could also revolutionize the way bondholders receive interest. Indeed, traditional bonds generally pay interest semiannually, annually, or even amortized. However, since KUMA tokens rely on smart contracts, the latter allow holders to be paid interest every 4 hours by default. An originality that provides a more constant flow of income to investors without any claim process being necessary and that does not involve transaction costs.
The balance of these tokens grows in users’ wallets without requiring any action, corresponding to the interest rate paid by the bond backing them, minus the commission. Additionally, KUMA DAO’s approach naturally enables partial access to bond benefits, lowering the entry barrier for investment and opening the door to 24/7 global trading and liquidity. 7 days a week. Examples of applications include savings accounts, protocol treasuries, and individual wallets.
Apart from interest, tokens behave like regular stablecoins by freely integrating a larger crypto ecosystem (DeFi platforms, GameFi, NFT…). Mimo designed the KUMA protocol and tokens to be easier to use than traditional tokens. Thus, unlike the latter which remain complex and difficult to access in financial products, KUMA tokens can be easily bought and sold in any decentralized application. This frees up their spread and generalization in the longer term. Also, because the KUMA protocol uses blockchain technology, the entire token issuance process is auditable, transparent and secure.
Mimo’s godmother, a fixed sign
This force of innovation is coupled with a desire to provide cryptophiles who may be tempted by this new and disruptive product. A most laudable attention in an extremely turbulent and volatile crypto context. Therefore, Mimo has worked behind the scenes with government officials, industry experts and regulators from various jurisdictions to ensure that the development of new financial products complies with all applicable laws and regulations. Thus, as of January 2022, the FMA (Lichtenstein Market Authority) has authorized Mimo to offer blockchain-related services. Thus, Mimo has the rights and legal framework to offer the blockchain market a new accessible financial product opening up new opportunities in the blockchain industry for investors around the world.
Mimo has the advantage of being the first regulated player in the European Economic Area (EEA) offering arguments that allow its users to gain interest while enjoying the security of their preferred custody solution and the peace of mind that a fully arranged. To strengthen its safety approach, Mimo Capital AG initially selected sovereign bonds from countries with a good credit rating and traditionally considered safe assets. Of course, since zero risk does not exist, this setup still exposes users to the credit and interest rate risk of the underlying sovereign bond.
After tokenizing sovereign bonds, Mimo will rely on KUMA to offer other assets, such as corporate debt and funds. So far, all Mimo partners including Polygon, Fantom, Swissborg, SingularityDAO and Akt.io have indicated their intention to use KUMA. With a focus on usability and accessibility, Mimo is committed to bringing the benefits of decentralized finance to a wider audience, including businesses and retail investors.
To know more about Mimo, do not hesitate to visit Mimo official website. And not to miss any of the latest developments of the Kuma project: