Chumhum (CHUM) Coin Review : It is Good Or Bad Review

About Chumhum (CHUM)

Chumhum (CHUM) Protocol is an algorithmic-based money market system designed with an intent of enabling a complete decentralized finance-based lending and credit system. helps users make efficient use of their cryptocurrencies by supplying collateral to the network which can be borrowed by pledging over-collateralized cryptocurrencies. This helps increasing a secure lending ecosystem where the lender receives a compounded interest rate annually (APY) which is paid per block, while the borrower pays interest on the cryptocurrency borrowed.

Chumhum (CHUM) interest rates are defined by the protocol using a curve yield, where the rates are automated based on the demand of the specific market, such as Bitcoin. The main difference of ChumHum from other money market protocols lies in the ability to use the collateral supplied to the market to not only borrow other assets but also to mint synthetic stable coins with over-collateralized positions that helps in protecting the protocol. These synthetic stable coins are just backed by a basket of fiat currencies but also by a basket of cryptocurrencies.

Chumhum (CHUM) Protocol is designed for a complete algorithmic money market protocol. The protocol designs are architected and forked based on Compound and Marker DAO and synced into the platform, thus incorporating the advantages of both systems into one. enables “BUM”, your decentralized Stable coin which you can use in over 60 million locations worldwide through the Just Liquidity platform and the Jul Card. There are no pre-mines for the team, developers, and founders, just for the Airdrop; this means the protocol will be controlled by those who got the airdrop and who decide to mine CHUM.

Chumhum (CHUM) Storage Key Points

Problem Statement

Chumhum (CHUM) evolution of decentralized finance has led to adverse financial environment, built directly on blockchains, which are transparent/verifiable through cryptography and pre-defined coding, also known as smart contracts. These platforms are redefining the very structure of money markets without any requirement for a central authority or third-party decision-makers. In today’s traditional world, users would be needed to provide credit-worthiness, provable income, and other factors to the lenders even when the user provides collateral lssu ch as homes or cars. Traditional lenders do not allow digital assets and cryptocurrencies to bepledged and used to receive loans or earn interest rates for providing them to the banks and lenders.

ChumHum is not the only protocol to help bridge the gaps between traditional financial lending into decentralized protocols on top of blockchains. There have been other protocols as well that achieved this with billions in assets locked into the protocols. However, these protocols are mainly built on Ethereum, which is costly, slow, and thus has affected the user experience. These protocols also lack higher market cap assets to back them up such as XRP and Litecoin.

Chumhum (CHUM) current protocols such as Compound are also heavily centralized, where stakeholders and private equity funds seem to be in control of most of the decision-making and do not have a variety of other control mechanisms. Their distribution plan does not equate to decentralization

Solutions

Chumhum (CHUM) To create a protocol that allows a traditional money market tied into synthetic stable coin generation will lead to benefits and allow accessibility of locked collateral. will enable everyone to make use of a high-speed and low transaction cost blockchain by leveraging different Blockchains, earn interest on that collateral, borrow against that collateral, and mint stable coins on-demand within seconds. All these solutions happen directly on the blockchain and may be utilized using aGUI. This protocol unlocks billions of dollars invalue which are currently on-chains and have no lending markets such as Bitcoin, XRP, Litecoin, andmore; while allowing the participant to access liquidity in real-time.

Uses Case

Let’s say that Miriam wants to buy her new dream house, but the bankers have declined her application. Miriam has been a cryptocurrency advocate for many years and has a good portfolio, but doesn’t want to expose herself to capital gains tax by selling the assets and not earn any worthwhile appreciation. Then again, Miriam believes in the underlying technology of cryptocurrencies as she cannot but believe in the mid and long-term growth of the asset class. So what does Miriam do? She can’t use her bank to borrow money from her asset class. She can’t sell at the moment and expose herself to taxes and missing opportunities.

Miriam turns to the Protocol by utilizing the token canal project to move her XRP from the XRP Ledger to the Blockchain where is based. She then utilizes her browser and the internet to access the Dashboard and supplies her XRP to the protocol. She is now benefiting from the potential price appreciation of her XRP while earning a modest APY on her supply. She then prepares to take a loan in USDC by calculating how much she needs, the initializing the dashboard to take the loan. Without any bankers or third parties in between, the protocol will calculate her collateral value and the let her take an over-collateralized loan on it. She borrows USDC instantly and uses her crypto exchange account to convert it into local fiat currency .Now Miriam has enough corpus to buy her dream house while waiting for the markets. She is not obliged to any monthly payments, and her collateral appreciation can be used in her favor. She can also make payments at any time and pay no additional interest as interest rates are compounded per block

Supplying Assets

Chumhum (CHUM) users of Protocol may supply various supported cryptocurrencies or digital assets on to the platform, which can be used as collateral for loans, supply liquidity and earn an APY, or to mint synthetic stable coins. Supplying assets such as cryptocurrencies or digital assets to enables the users to participate as a lender while maintaining the security of collateral in the protocol. Users will earn available-based interest rate depending on the yield curve utilization of that specific market. All user assets are pooled into smart contracts so that users can withdraw their supply at any given time given that the protocol balance is positive.