Brand Story
20 Jan 2023, 08:15 GMT+10
Decentralized Finance Innovator Mimo is launching "KUMA Protocol": the first DeFi protocol issuing tokens backed by regulated NFTs, themselves backed by sovereign bonds. This launch comes as the FMA (Financial Market Authority Liechtenstein) has approved Mimo for providing blockchain-related services since January 2022.
KUMA tokens, built as a smart contract compatible with most blockchains, are designed to provide holders with a reliable source of passive income through the accrual of interest on their holdings.
KUMA Tokens are NFTs representing bonds that KUMA Generator (a decentralized product owned by KUMA DAO and governed by the MIMO tokenholders) can accept as a backing to issue KUMA Interest-Bearing Tokens, a form of synthetic stablecoins that automatically accrue interest. The balance of these tokens grows in users' wallets without any action required, matching the interest rate paid by the bond backing them, minus commission. Apart from the interest, the tokens behave like regular stablecoins, allowing them to be integrated freely into the broader crypto ecosystem, like DeFi, GameFi, and NFTs platforms.
The launch of this protocol also has the potential to revolutionize the way bondholders receive interest. Traditional bonds typically pay out interest semi-annually, annually, or even when reaching maturation. However, because KUMA Interest-Bearing Tokens use smart contracts, interest can be paid out to holders regularly, every 4 hours by default, providing a more consistent income stream for investors while not involving any claim process.
In the background, Mimo Capital AG handles the bonds and offers simple redemption to the users. Moreover, a smart contract managed by the KUMA DAO provides infrastructure for its community to swap or roll the NFT bonds over, ensuring smooth operation when a bond reaches its maturity date or the issuing authority publishes an updated rate.
To date, a few other efforts of bond tokenization have started. However, Mimo has the advantage of being the first regulated in the European Economic Area (EEA), providing tokens allowing its users to earn interest while benefiting from the safety of their favorite custody solution and the peace of mind coming with a fully regulated product.
Furthermore, KUMA DAO's approach naturally provides fractionalized access to the benefits of bonds, lowering the entry barrier to investment and opening the door to 24/7 settlement, trading, and global liquidity. Example applications include savings accounts, protocol treasuries, and individual wallets.
Following the tokenization of sovereign bonds, Mimo will leverage KUMA to provide other assets, such as corporate debt and funds.
So far, all of the Mimo partners, including Polygon, Fantom, Swissborg, SingularityDAO and Akt.io have indicated their intention to use KUMA.
"We are thrilled to offer our users a new way to earn passive income through tokenized bonds," said Claude Eguienta, Founder and CEO of Mimo Capital. "With this innovative mechanism and backed by a diverse range of real-world assets, we believe that interest-bearing tokens are poised to become a leading tool in the Decentralized Finance space."
To learn more about Mimo and the KUMA Protocol, visit https://mimo.capital & https://kuma.bond
About Mimo
Mimo is a leading blockchain company that built a multichain DeFi protocol providing a Decentralized & Multichain Euro Stablecoin and developing Blockchain Powered Financial Products. With a focus on user-friendliness and accessibility, Mimo is committed to bringing the benefits of decentralized finance to a broader audience, including business and retail investors.
Disclaimer : There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. This is not investment advice. Please do your own research.
MEDIA CONTACT:
Company : Mimo Capital
Contact name : Yacine Farouk
Email: yacine.farouk@mimo.capital
Website: www.mimo.capital
Location : Vaduz,Liechtenstein
Get a daily dose of London Mercury news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to London Mercury.
More InformationShe tells a court everything seemed normal in the hours before the baby was killed. ...
Alice Stones died when she was attacked by the family pet in a garden in Milton Keynes last week. ...
Paul King, 63, is jailed for eight years for attacking a 16-year-old boy in a park in Stevenage. ...
Ukraine's president gave the speaker of the House of Commons a helmet, as he visited Parliament to address politicians. ...
There are fears the 30 weekly allowance is not enough amid the cost of living crisis. ...
Former Metropolitan Police officer David Carrick has been jailed for a minimum of 30 years. ...
TORRANCE, California: Due to un-repaired Takata air bag inflators that can explode and unleash potentially deadly metal shrapnel inside vehicles, ...
NEW YORK, New York - After a day of major gains, U.S. stock markets fell sharply Wednesday underscoring volatility as ...
CAPE CANAVERAL, Florida: In a tweet this weekend, Elon Musk said that SpaceX may attempt a Starship rocket system launch ...
LONDON, England: The Society of Motor Manufacturers and Traders has reported that new car registrations in the UK rose for ...
TAIPEI, Taiwan: After the end of COVID-19 disruptions in China, Taiwan's Foxconn, the world's largest contract electronics maker and major ...
NEW YORK, New York - Stocks ended sharply higher on Tuesday following mixed comments by Federal Reserve Chairman Jerome Powell.Powell ...