The value of the under-the-radar altcoin surged nearly 210% between Thursday and Friday of this week after the project sparked the launch of a new cryptocurrency solution.
Uma is The optimistic oracle and dispute arbitration system aims to serve as a “decentralized truth machine.”
The 156th-largest cryptocurrency asset was trading at around $2.01 on Thursday and then exploded in price to a high of $6.22 at one point on Friday, a staggering 209.45% increase.
The token has since partially rebounded and is trading at $4.51 at the time of writing.
The asset's massive gains were made when UMA rolled out a new product that would “recover” the tens of millions of dollars lost by lending protocols every year to Maximum Extractable Value (MEV).
Neither the project nor its founders provided many details about the upcoming offering:
“Next week, the UMA will launch something that will nicely recoup more than $100 million in free money lost annually to MEV.”
MEV is a strategy to get as much extra profit as possible from producing a new block (outside of gas fees and block rewards) by messing with the order of transactions, according to Binance Academy.
Binance explanation,
“Block producers are best placed to do this because they have the ability to choose and order transactions.
However, other participants in the network (known as finders) can also pay fees to conduct transactions if they see an MEV opportunity, such as arbitrage, pre-running, or liquidation. MEV is often found in smart networks that support smart contracts where blockchain transactions involve more complex information.
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