RATE Group | UMA Project Creates Its First Synthetic Coin, Matching ETH Against BTC
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UMA Project Creates Its First Synthetic Coin, Matching ETH Against BTC

21 May UMA Project Creates Its First Synthetic Coin, Matching ETH Against BTC

Posted at 00:56h in Cryptocurrency News by

Want to bet the price of ether (ETH) is rising relative to the price of bitcoin (BTC)? There’s now a token for precisely that.

On Tuesday night, the UMA Project community approved contracts that allowed creating its first token: ETHBTC. This is a synthetic token whose value tracks the relative value of ETH to BTC, so if ETH is worth $200 and BTC is worth $10,000, an ETHBTC should be worth $0.02. 

The intriguing thing about ETHBTC, though? No ETH or BTC is needed to make it.

This will be the first deployment of what UMA, a decentralized finance (DeFi) project, calls the priceless token model, one built from the start to minimize the need for oracles.

“ETHBTC was selected as the first test for UMA’s priceless synthetic design because it’s DeFi-centric but not too serious,” Hart Lambur, UMA’s co-founder, told CoinDesk in an email. “This first token is still experimental, so it felt wise to choose a product that appeals to hardcore DeFi natives – the type of people that might want to…

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