Brand Story
20 Jan 2023, 03:45 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: [email protected]
Website: www.mimo.capital
Location : Vaduz,Liechtenstein
Get a daily dose of St Louis Star 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 St Louis Star.
More InformationISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
VENICE, Italy: Over the weekend, hundreds of protesters marched through the narrow streets of Venice to voice their opposition to billionaire...
PARIS, France: France is taking stronger steps to reduce smoking. A new health rule announced on Saturday will soon ban smoking in...
WASHINGTON, DC - U.S. President Donald Trump on Tuesday claimed Elon Musk's success has been built on government subsidies. Without...
EVERGLADES, Florida: Over the weekend, a diverse coalition of environmental activists, Native American leaders, and residents gathered...
BEIJING, China: China's national soccer team may struggle to stir excitement, but its humanoid robots are drawing cheers — and not...
NEW YORK, New York - U.S. stocks diverged on Wednesday for the second day in a row. The Standard and Poor's 500 hit a new all-time...
NEW YORK CITY, New York: The U.S. dollar continues to lose ground, weighed down by growing concerns over Washington's fiscal outlook...
KABUL, Afghanistan: Afghanistan, long associated with war and instability, is quietly trying to rebrand itself as a destination for...
SANTA CLARA, California: Executives at Nvidia have quietly been cashing in on the AI frenzy. According to a report by the Financial...
NEW YORK, New York - Global stock indices closed with divergent performances on Tuesday, as investors weighed corporate earnings, central...
TORONTO, Canada: Canadian Prime Minister Mark Carney announced late on June 29 that trade negotiations with the U.S. have recommenced...