Mimo DAO Launches Interest-Paying Stablecoins Through KUMA Protocol
Zug, Switzerland, June 27th, 2023, Chainwire
The Mimo DAO has announced the creation of a solution for stablecoin issuance backed by tokenized bonds. The KUMA Protocol leverages tokenization to give users access to traditional assets such as corporate and treasury bonds, which can be traded as regular digital assets onchain. Unlike conventional stablecoins, KUMA interest-bearing tokens pay regular interest to holders.
The KUMA Protocol was spurred by a desire to provide a new type of stablecoin, where its holder can also earn the interest generated by traditional investment assets.
The KUMA Protocol is designed to handle the issuance of stable tokens and their backing. These assets behave like stablecoins in that they are low-volatility instruments but with the added benefit of paying fixed interest. The tokenization of bonds is handled by a separate entity where traders purchase these bonds and convert them into tokens.
The tokenized bonds developed by Mimo Capital are designed to solve many of the shortcomings associated with stablecoins. This includes their inability to dispense any sort of APY or yield. As a result, stablecoin owners are unable to generate any profit from holding dollar- or other fiat-pegged assets.
By purchasing KUMA interest-bearing tokens through KUMA Protocol, investors can experience the best of both worlds. They have the stability of owning an asset whose behavior mimics a stablecoin, but the reward that comes from owning a productive asset that has the characteristics of a bond. In addition to serving as a reliable store of value, this solution provides investors with some level of exposure to low-risk investment products that generate consistent returns.
About the KUMA Protocol
The KUMA Protocol is a platform designed to give users access to traditional assets in a DeFi-compatible way. To do this, the protocol has tokenized real-world assets in multiple forms accessible on the blockchain. KUMA’s ultimate goal is to provide investors with alternative sources of yield.
All this is the work of Mimo Capital. Mimo is a company that creates protocols like KUMA – platforms that provide tokenized real-world assets and allow for the minting of price-stable currencies. The KUMA Protocol will be run and governed by a community of MIMO token holders.
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