The price of the Uma protocol’s native token shot up to the sky as it hinted at a possible solution that would shield lending protocols from maximal extractable value (MEV).
The statement caused the price of the Uma token to jump by about 80%, from $2 to $3.67, at the time of writing, according to CoinMarketCap. At this point, Uma’s market capitalization is around $300 million, the largest since mid-2022.
There are currently few details available concerning the Oval MEV solution that is being suggested. Uma has stated that the goal of this product is to safeguard loan procedures, nonetheless. It is expected that this solution will be introduced next week, as Uma co-founder Hart Lambur said.
In blockchain technology, a concept known as MEV allows block producers to reorganize transactions to make them more profitable for third parties. Uma claims that each year, lending methods lose significant sums of money because of MEV, with estimates in the tens of millions of dollars.
Uma’s remarks regarding recovering lost value suggest that the future launch intends to remedy this problem. Tens of millions of dollars are lost by lending protocols to MEV annually. The project said on X that it was time to recover that value.
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