Mimo Labs is a leading blockchain company that readers of the JDC probably already know. In fact, we have told you regularly about the “PAR” token.. This is a Over-collateralized, decentralized, multi-chain Euro stablecoin. This champion of decentralized finance launch “KUMA” very soon. The first DeFi protocol that issues 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 a significant milestone for Mimo Labs and the entire DeFi space. In fact it becomes the first and only protocol that issues NFT-backed tokens that derive their value from traditional fixed income products (jump). This is a new investment option for anyone looking to diversify their savings outside of strict cryptography without deviating from the blockchain. An essential diversification in a generally bearish economic environment e a recession that many predict is imminent.
To do this, Mimo Labs created two separate entities. On the one hand, Mimo Capital AG is the regulated entity issuing these NFTs backed by traditional finance bonds. It is she who manages the securities from which the NFTs derive their value. It is controlled directly by Mimo Labs. On the other hand, the KUMA DAO will manage the specific characteristics of the STI (interest bearing token) resulting from these NFTs. It is controlled by the community of MIMO token owners which decides on the basis of the proposed NFTs the quantity of IBT tokens issued, their yield, etc.
These two separate entities have respective distinct roles which complement each other to issue the famous “Interest Bearing Token” or IBT. This creation operation is supported by the “Kuma generator”. Indeed, within this automated entity, the smart-contracts combine the decisions taken by the community collected within the “KUMA DAO” and the data contained in the NFTs issued by Mimo Capital AG issue STIs that conform to the “bonds” that serve as collateral. It is this complete 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, annually or even over time KUMA IBT Protocol they are built like many smart contracts, and compatible with most blockchains.
The latter pay interest to holders every 4 hours by default. An originality it provides a more substantial income stream for investors. There is no complaints process needed and there are no transaction costs. KUMA tokens are therefore designed to become a reliable source of passive income. They come from NFTs representing the obligations and interest generated.
We are excited to offer our users a new way to earn passive income through tokenized bonds. Thanks to this innovative mechanism e […] Backed by a diverse range of real-world assets, we believe interest-bearing tokens are poised to become a first-rate tool in the decentralized finance space.
Claude Eguienta, founder and CEO of MimoLabs.
The Kuma protocol, NFTs and IBTs elevate DeFi
The balance of these KUMA IBTs grows in users’ wallets without any action being required. This is the interest rate paid on the bond backing them, minus the fee. Apart from the interest, the tokens behave like normal stablecoins by freely integrating a wider crypto ecosystem (DeFi platforms, GameFi, NFTs …). In fact, Mimo Labs designed the KUMA protocol to be easier to use than traditional bonds.
Therefore, unlike the latter which remain complex and difficult to access financial products, KUMA IBTs can be easily bought and sold without a minimum amount on any decentralized application. This releases their long-term proliferation and generalization. The approach of the KUMADAO it naturally allows for divided access to the benefits of the bonds. They lowers the barrier to entry to investment and opens the door to 24/7 global trading and liquidity.
Examples of applications include savings accounts, protocol treasuries and individual wallets. Furthermore, a smart contract allows KUMA DAO to provide its DAO members with the necessary infrastructure for the free circulation of these bonds. The guarantee ofregular management when a deadline is reached or when the issuing authority updates a rate. Furthermore, the protocol is based on blockchain technology, which brings transparency and security to the entire token issuance process.
Kuma by Mimo Labs, a regulated DeFi product
This strength in innovation is coupled with a desire to do so protect cryptophiles who will be interested in this new and disruptive product. Commendable attention in an extremely troubled and volatile crypto environment. Mime Lab he then worked behind the scenes with governments, industry experts and regulators from different jurisdictions. This is to ensure that this new financial product complies with all applicable laws and regulations. Therefore, since January 2022, the FMA (Lichtenstein Market Authority) has authorized Mimo Capital AG to provide blockchain-related services. The entity then has the rights and the legal framework providing the blockchain ecosystem with a new accessible financial product, opening up new opportunities for investors from all over the world.
Mimo Capital Ag has the advantage of being the first regulated operator in the European Economic Area (EEA) to provide NFTs that allow you to earn interest directly to your favorite wallet. To bolster its security from the outset, Mimo Labs wanted to select sovereign bonds from countries with good credit ratings and traditionally considered safe assets. Of course, when it comes to cryptocurrencies, zero risk is just wishful thinking. Users will then be exposed to the risks inherent in bonds.
After the tokenization of the bond, Mimo Labs will rely on the KUMA protocol to provide other types of resources. This depends on the type of collateral, such as corporate debt and funds. So far, all 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 to bring the combined benefits of CeFi and DeFi to a wider audience. Then, all that remains is to wait a few weeks for ongoing audits to confirm the trustworthiness of KUMA, its disruptive NFT tokens and lucrative IBTs.
to know more
Don’t hesitate to visit Mime official site. And in order not to miss any of the latest news from the KUMA project: