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UMA's Value Capture

UMA Protocol's MEV announcement sent its token soaring.

Jack Inabinet
Jan 23, 2024 • 1 min read

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MEV Money! UMA has gone meteoric over the past 5 days, gaining 190% off its Oval announcement last Thursday. Why has the UMA token rapidly repriced?

When discussing MEV, we are typically talking about toxic MEV – like the money generated from a sandwich attack – and how to return this value back to the users performing onchain actions.

While it is possible to prevent this type of user-generated MEV by using a protected RPC endpoint, no method has cracked the task of capturing MEV created by protocols. Each year, lending protocols lose tens of millions of dollars to MEV; Aave Aave alone has bled over $62M to MEV during its lifetime!

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Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.