The unknown altcoin surged nearly 210% between Thursday and Friday this week after the project teased the launch of a new cryptocurrency solution.
UMA is An optimistic oracle and dispute arbitration system that aims to act as a “decentralized truth machine.”
The 156th-largest cryptocurrency asset by market cap traded at around $2.01 on Thursday before surging to a high of $6.22 at one point on Friday, marking a remarkable gain of 209.45%.
The token has since been partially reverted and is trading at $4.51 at the time of this writing.
Massive gains for the asset have been realized as UMA introduces new products that “claw back” tens of millions of dollars of lending protocol losses each year to maximum extractable value (MEV).
Neither the project nor the founders have provided many details about the upcoming release.
“Next week, UMA will launch a product that will gracefully reclaim the more than $100 million in free money lost each year to MEVs.”
According to Binance Academy, MEV is a strategy to manipulate the order of transactions to gain as much additional profit as possible from new block creation (excluding gas fees and block rewards).
Explaining about Binance.
“Block producers are best positioned to do this because they have the ability to select and order transactions.
However, other network participants (also known as searchers) can also pay a fee to place trades when they discover MEV opportunities, such as arbitrage, front-running, or liquidation. MEV is most commonly found in smart contract-enabled networks where blockchain transactions involve more complex information.”
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