Umoja Launches Beta Hedging Service to Bolster Crypto Investment Safety

On Tuesday, the crypto platform Umoja unveiled its beta version of hedging-as-a-service, designed to shield users from crypto losses. Umoja’s mission is to enhance the safety and accessibility of crypto investments, opening up hedging opportunities in a market valued at $500 trillion.

Umoja Debuts Beta Hedging Platform

The crypto platform Umoja has announced the beta launch of its hedging-as-a-service offering. Umoja, founded by Robby Greenfield, aims to make it simple for users to implement customized hedging strategies to safeguard against asset depreciation and potential liquidation.
“Umoja’s beta is more than just a new service launch — it’s a significant stride towards a future where crypto investments are safer and more stable,” Greenfield said in a statement sent to Bitcoin.com News. “By simplifying and democratizing the hedging process, we’re opening up a world of new opportunities for investors at all levels.”
Umoja’s beta launch introduces centralized finance (Cefi) Dynamic Term Loss Coverage for assets including BTC, ETH, and AVAX. This enables investors to flexibly hedge against risk at lower costs than traditional methods, requiring less capital. A new zero-loss staking feature allows users to stake assets for yield while their principal is protected from loss.
The platform’s main goal is to simplify hedging so it is accessible to more investors. Users select customized coverage products aligned with their goals. To initiate coverage, investors deposit 10% refundable collateral, lowering barriers to entry. Collateral must remain above 5% to maintain coverage.

Last month, Umoja raised over $2 million from backers including the Avalanche Foundation, Quantstamp, Blockchain Founders Fund, Orange DAO, and Coinbase Ventures. It is launching as a centralized finance (cefi) platform, switching to decentralized finance (defi) in Q2 2024.
“Hedging provides a seatbelt for investors embarking on the roller-coaster ride of defi markets,” Greenfield concluded. “As such, it shouldn’t be a luxury, nor should it be a brain-twister. Umoja is all about providing that safety net for defi investors.”
What do you think about Umoja launching its beta hedging-as-a-service platform? Share your thoughts and opinions about this subject in the comments section below.