Recap of the Umbrella Network AMA with Blockchain Space

On Thursday, August 19th, we had the pleasure to welcome to our Telegram chat:

John Chen, The Head of Marketing at Umbrella Network.

We asked him questions about the development of Umbrella Network.

INTRODUCTION

Q~ Thanks for joining us today John. Please start off by introducing yourself to the Blockchain Space community and your role in the team ?

A~ Yes sure, my name is John Chen and I’m the Head of Marketing at Umbrella Network. I handle most aspects of the marketing, operational related responsibilities, pretty much whatever is not development. I joined the project at the end of last year, pretty much near the beginnings. Prior to Umbrella Network, I ran my own digital media and marketing agency, based out of Singapore where I currently live and have lived for the past 6 years, prior to that I grew up around the New York city area.

Q~ Tell us what Umbrella Network is, how it works, and what kind of value does it add to the ever expanding DeFi ecosystem ?

A~ What makes us different than all the other oracles out there, including Chainlink, Band, and others, is that we aggregate our data before bringing it on chain. Other oracles have to bring one piece of data at a time on chain. So if a dApp needs the price of BTC/USD and ETH/USDT every single minute, then a typical oracle would have to write twice to the chain every minute, once for every data pair, which can get incredibly costly.

What we do is aggregate all of the data and write it all at once, so whether it’s the price of both BTC/USD and ETH/USDT, or the entire S&P 500, all of it is rolled up and put on chain at once. This leads to massive cost savings, is much faster, and more secure. As a result, this gives DeFi developers access to a lot more information, at a much lower cost point, and can allow them to offer more complex solutions to their clients - similar to tradFi systems - but decentralized and much more cost-effective.

Q~ Can you share with us detailed information on the $UMB tokenomics and it’s usecases ?

A~ Yes sure, in terms of use-cases, we believe that data is the new oil and bringing more comprehensive access to that data, and at the lowest price points possible, is what will drive innovation. Our price feeds are currently updated every 3 minutes, and is about to go down to every 20 seconds, so we are able to provide fresh, lively data, something that many other oracles are not able to offer due to prohibitive costs. We are also able to provide complex calculated data such as implied volatility, the greeks, etc. Now, dApp devs do not have to perform on-chain calculations or pay extra GAS costs as $UMB helps provide all of that. Our data can be used for obvious cases like most DeFi apps, exchanges, lending platforms, etc that needs up to date prices of cryptocurrencies, to more varied applications like gaming that may need a random number generator, or sports data, to ecommerce based applications that may need product and pricing data. To be honest, the possibilities are almost endless.

As for the tokenomics, the $UMB token is the fuel that runs the Umbrella Network ecosystem. From staking and validating of data to paying the fees for data access, $UMB is what drives it all. Our tokenomics structure is very decentralized too. The majority of our tokens are allocated to the community, who will ultimately be responsible for selecting validators, participating in governance, staking, and overall consensus voting, among others. Currently we have very attractive staking / rewards programs in place. For token holders who wish to stake, they can visit staking.umb.network and check out our programs. Last time I checked, APYs ranged from 160% on our Hadley Stream up to over 450% for our Polar Stream staking.

Q~ Can you give us an update on what the team at Umbrella Network has accomplished till date and your future plans for Umbrella Network ?

A~ I think we’ve made quite a lot of progress over the past 6 months since our IDO in February. As a chain-agnostic project, we will be supporting many chains. We just want to be where the applications are that need access to data. We went live on BSC mainnet at the end of May, ETH mainnet is happening next month at the end of September. This will be followed by Polygon, Solana, Cardano, Moonbeam/Plasm, and Avalanche. with more to follow as the overall ecosystem continues to develop.

Till date, we’ve built partnerships with over 40 companies to foster faster adoption of our oracles.

I’m also happy to announce that we’ve onboarded our first cohort of 6 community validators to continue forward on our path to full decentralization of our oracles. And as we continue to expand that program, almost anyone in our community can become a node operator to help validate data and secure our network.

We’re also building a token-bridge for easier inter-operability and to reduce 3rd party dependence. The initial bridge would connect Ethereum and BSC, and will be launching in the first half of September. And we’ve got a lot more stuff in the pipeline in terms of new product feature releases, new partnerships, and other major developments, so stay tuned!

We’re going to be releasing an updated roadmap at the end of this month. yeah we’re excited to share that with the community.

QUESTIONS FROM BITCOINTALK

Q~ At the moment, you have tough competition from the likes of Chainlink, Band Protocol, Kylin, DIA, API3, etc. How do you plan to become the market leader in the world of decentralized oracle service?

A~ Good question! We might have a different definition of tough. But jokes aside, oracles like the wider infrastructure and interoperability ecosystem on blockchains is not a zero-sum game. The market opportunity is massive. Take for example Chainlink - they currently have a few hundred partners, and maybe 250 data pairs, with most updating once a day. They are currently the market leader. I think this shows how nascent and early stage the market really is.

Band Protocol and Kylin Network, while their architectures are quite different and it translates into how each of us envision the best way to make oracles decentralized. For example, Band has its dependencies on Cosmos and Kylin on Polkadot. I’m looking forward for them to have their mainnet launches in the near future. DeFi and decentralization definitely are still in its early stages and competition is both welcome and healthy. We are all about that.

On DIA and API3, I think they are more modular, but could be unwieldy On this front, I think they fill a part of the role that we provide and there might be synergistic partnerships down the road. Overall we are still in the very early stages of development. We believe we have a unique value proposition with our data solution, particularly for developers that are looking for large quantities of data and at lower price points.

Q~ Hi, I just found out that Umbrella Network was one of the projects that was affected in the Chainswap hack during the course of my research and have been hodling my UMB Tokens on MXC Exchange for a long time now, I found out too late cause I wasn’t following up, what actions did you take after the hack and what exactly is the way forward for me, did you also airdrop new tokens to those holding UMB on exchanges?

A~ Yes - it was quite unfortunate. It happened on a Friday night or Saturday morning (depending on where you lived) back in July. We took snapshots so we knew who the affected parties were and took measures immediately to try to help mitigate the issues.

After the hack, enacted several plans to help minimize the impact:

1) We set up an internal fund (of 110ETH) to buy back from the public the same amount of tokens that the hackers dumped into the market

2) We set up bonus programs to give back to the community on both ETH and BSC so that they could earn more bonus rewards for just holding our tokens.

3) We froze our UMB token on BSC to prevent the hackers from selling the additional tokens that they had minted on BSC, and subsequently replaced everyone’s tokens with a new token contract 1:1

4) We stopped using ANY third party token bridges, and will be releasing our own fully audited token bridge in early September, to minimize any potential for external situations that may be beyond our control.

However, we were fortunate in the sense that none of Umbrella’s smart contracts were impacted /hacked.

QUESTIONS FROM TWITTER

Q~ To maintain your relevance of your services, data has to updated regularly. How often will you update your data bank, and how will new project enlist into your Oracle?

A~ So like mentioned earlier, we currently update our price feeds approximately every 3 minutes. We are shifting to every 20 seconds on BSC side very soon new projects that want to use our oracles can reach out to us directly and we can provide guidelines on how to integrate and access our data feeds, can visit our website umb.network and go to our developer’s portal to get started. For those that want to get their data pairs or pricing of their project token listed, can for now reach out to us directly and we can easily onboard their token and price information into our data feeds. Down the road we will have a more automated process that will be rolled out.

Q~ I read that Umbrella’s Oracle service empowers the community with the scale and security that modern DeFi apps require, but how does it really empower them? Could it be that it makes it easier for them to do jobs compared to other oracles?

A~ Good question, by bringing the most comprehensive set of data on-chain, we enable DeFi apps to continue innovating & providing the community with decentralized fintech solutions. And by making data access cheap, we enable #dApp devs to pass on the savings to the community.

Q~ Are oracles really limited as soon as they operate and offer products to fungible tokens? or do they also offer certain products to the NFT assets? If so, why do they only point to the 1200 data pairs offered by Umbrella and not the NFTs?

A~ This is exactly where Umbrella Network’s competitive edge shines. Our data is not limited to just price feeds. We can pretty much bring any type of real world data onto the chain. If there is an API connection out there, we can pull the data and provide it to developers. We currently offer about 1,200 data pairs, but are looking to increase that to over 10,000 data pairs by the end of this year. And it won’t be just crypto price pairs but a wealth of different types of data. We are just getting started.

QUESTIONS FROM TELEGRAM

Q~ What are the ways for your project to generate revenue in the long run? What is the progress of business development and what are some of your commercial partnerships?

A~ Currently we are not charging for our data. Everything is free. Next year, as we get more significant market adoption, we will start to charge on a SaaS based model, so a set monthly price depending on the volume of data you consume. However, we are also starting to move into the enterprise space, so there may be other ways for revenue generation via broader commercial agreements down the road across various industry verticals as our project continues to develop.

Q~ Marketing strategy is very important. A product can be established on the market without marketing and promotion, whatever it is good. So what are your plans for this? How will you build strong relationships with communities?

A~ We do take a multi-pronged marketing strategy, where we are building content, utilizing our social media and various marketing channels, partnering with other projects and key influencers to get the message out. And we typically will do that in planned cycles to take advantage of major news or developments that we have in store. But the biggest and most important part of the strategy really is our execution. When we set positive milestones, and we successfuly execute against them, that is the biggest impact, which we then can amplify with a well planned marketing strategy.

Q~ You point out that Umbrella “provides access to data that was previously not available to blockchain developers”, but could you really tell us what would be those data access that would only be enjoyed with UMB? and how beneficial will they be for project development?

A~ Good question. There are several types of data we can provide that is currently not available. One of the data types we will be rolling out in the very near future is a more sophisticated set of options pricing data that is right now not available at all in DeFi. We have built out and will be offering wall street level data to help derivatives platforms with superior options pricing models to help traders more effecitively and profitably trade. Thats just one example. In general, we can bring certain types of data on chain that would be prohibitively expensive for another oracle to do so, because of the inherent architecture of our data solution. So anything that is a massive volume of data, or that may require a very high frequency of data updates.

Q~ In project Umbrella! How will you manage your platform if something unexpected happens in the future!? especially the problem of hacking that causes your platform to have some personal data of some users in breach of your Platform? Is your Umbrella platform ready for this situation?

A~ All of our smart contracts have been audited (by Slowmist). And while we were impacted by the Chainswap hack last month, luckily it was not due to any of our own smart contracts. We have taken measure to further improve on the security of our project and reduce risks to our token holders. Thats why we have stopped using third party bridges, and are releasing our own token bridge, which will be fully audited, in a few weeks. We have also partnered with both Uno Re and Polkacover to extend an insurance policy, that token holders have the option of purchasing, that will cover their total value locked when they stake in our rewards pools, both the Hadley Stream and Polar Streams, so that in the unlikely event of some black swan event like a major hack, their staked tokens would be insured and protected. We are one of only a few projects to be able to provide this type of policy to our community.

Q~ What are the requirements to become a delegator on $umbrella Network? And how will the network select delegator for each transaction ?

A~ We have a community validator program which we rolled out recently. You can find out more information about our program as well as how to apply by going here ->

We already have onboarded our first cohort of validators, but will be onboarding a second group very soon.

CONCLUSION

Thanks to everyone here for reading through my long winded answers. Hope you found some things that were interesting, and if you did, please hop over to our community any time, we’ve got a great and welcoming community to help you with any additional questions that you may have!

Here are our socials:

Website - https://umb.network/

Telegram Community - https://t.me/umbrellanet

Telegram Announcements - https://t.me/umbnetannouncement

Discord - https://discord.gg/G9x4TsHSd7

Twitter - https://twitter.com/umbnetwork

Medium - https://medium.com/umbrella-network

Youtube - https://www.youtube.com/channel/UC4g6K_50Ihbua2UCOiHgCFg/featured

Please join our community, engage, learn more about our project!

It’s really nice having the Umbrella Network project in here!!!

You can check out their Website for more details. You can also follow them on Telegram and Twitter to keep up to date with all things relating to Umbrella Network.

Join us now! Enjoy quality articles, daily curated news, insightful infographics, and enter a vibrant, fun, and knowledgeable community!

If you want to email us: Blockchainspace001@gmail.com

Blockchain space gives room for discourse which regards crypto-related topics, projects and cryptocurrencies. https://linktr.ee/blockchain_space