Mimo Labs is a leading blockchain company which JDC readers probably already know. Indeed, we have regularly spoken to you about “PAR” sign.. This is one Overcollateralized, decentralized and multi-chain Euro stablecoin. This champion of decentralized finance launches “KUMA” very soon. The first DeFi protocol to issue tokens backed by regulated NFTs, derived from sovereign bonds, without KYC.
KUMA protocol, a passive income generator that combines TradFi and DeFi
The launch of KUMA-Protocol represents an important milestone for Mimo Labs and the entire DeFi space. In fact, it does the first and only protocol to issue NFT-backed tokens that derive their value from traditional fixed income products (dance). This is a new investment option for anyone looking to diversify their savings outside of strict crypto without deviating from blockchain. An essential diversification in a generally difficult economic context and a recession that many predict is imminent.
To do this, Mimo Labs has created two separate entities. On the one hand, Mimo Capital AG is the regulated entity issuing these bond-backed NFTs from traditional finance. It is what manages the bonds from which NFTs derive their value. It is directly controlled by Mimo Labs. In turn, KUMA DAO will manage the specific characteristics for the IBT (Interest Token) resulting from these NFTs. It is controlled by the community of MIMO token holders which decides according to the proposed NFTs the amount of IBT tokens issued, their yield, etc.
These two separate entities have distinct respective roles that complement each other in order to issue the famous Interest Bearing Token or IBT. This creation operation is supported by “Kuma generator”. Indeed, within this automated entity, smart contracts combine the decisions made by the community gathered within the “KUMA DAO” and the data contained in the NFTs issued by Mimo Capital AG issue IBT in accordance with “bonds” serving as collateral. It is this completely original mechanism that is called the “KUMA Protocol”.
The launch of this protocol could revolutionize the way bondholders receive interest. Indeed, traditional financial products generally pay interest every six months, every year or even over time. KUMA IBT protocol are built as many smart contracts, and compatible with most blockchains.
The latter pay interest to holders every 4 hours by default. An originality that offers a more stable income stream for investors. No claims process is necessary and there are no transaction fees. So, KUMA tokens are designed to become a reliable source of passive income. They come from NFTs which represent bonds and accrued interest.
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 CEO of MimoLabs.
Kuma Protocol, NFTs and IBTs Elevate DeFi
The balance of these KUMA IBT increases in user wallets without requiring any action. This is the interest rate paid on the bond backing them, minus the commission. Apart from interest, tokens behave like regular stablecoins by loosely integrating a larger crypto ecosystem (DeFi platforms, GameFi, NFT …). Indeed, Mimo Labs designed the KUMA protocol to be easier to use than traditional bonds.
Thus, unlike the latter which remain complex and difficult to access in financial products, KUMA IBT can be easily bought and sold without a minimum amount in any decentralized application. This frees up their spread and generalization in the longer term. The approach of KUMADAO naturally allows for shared access to bond benefits. it lowers the entry barrier for investment and opens the door to 24/7 global trading and liquidity.
Examples of applications include savings accounts, protocol treasuries and individual wallets. Additionally, a smart contract allows the KUMA DAO to provide its DAO members with the necessary infrastructure for the free circulation of these bonds. The guarantee ofsmooth management when a deadline is reached or when the issuing authority updates a fee. Furthermore, the protocol is based on blockchain technology, which gives the entire process of issuing tokens transparency and security.
Kuma from Mimo Labs, a regulated DeFi product
This strength in innovation is accompanied by the desire for it cryptophiles sure to be interested in this new and disruptive product. Commendable attention in an extremely turbulent and volatile crypto environment. Mimo Labs therefore working behind the scenes with governments, industry experts and regulators from various jurisdictions. This is to ensure that this new financial product complies with all applicable laws and regulations. Thus, as of January 2022, the FMA (Lichtenstein Market Authority) authorizes Mimo Capital AG to offer blockchain-related services. Thus, the subject has the rights and the legal framework to provide the blockchain ecosystem with a new accessible financial product opening up new opportunities for investors around the world.
Mimo capital Ag has the advantage of being the first regulated player in the European Economic Area (EEA) to offer NFTs that allow you to earn interest directly in your preferred wallet. To strengthen its security from the start, Mimo Labs wanted to select sovereign bonds from countries with a good credit rating and traditionally considered safe assets. Of course, when it comes to crypto, zero risk is just wishful thinking. Therefore, users will be exposed to the inherent risks of bonds.
After bond tokenization, Mimo Labs will rely on the KUMA protocol to offer other types of assets. This depends on the type of underlying bonds, such as corporate debt and funds. So far, all of Mimo Labs’ partners, including Polygon, ghost, Swissborg, SingularityDAO and Akt.io have indicated their intention to use the KUMA Protocol. With a focus on security, usability and accessibility, Mimo Labs is committed bring the combined benefits of CeFi and DeFi to a wider audience. So all you have to do is wait a few weeks for the ongoing audits to confirm the credibility of KUMA, its disruptive NFT tokens and its profitable IBTs.
To know more
Do not hesitate to visit Mimo official website. And not to miss any of the latest news from the KUMA project: