Posted 4 days ago | by Catoshi Nakamoto

On Wednesday we interviewed Umbrella Network’s Founding Partner Sam Kim. Kim explained the utility use cases for UMB, and how the project seeks to become a cross-chain oracle solution as well as how they will achieve this long-term goal. Umbrella Network also gave away $500 in USDT to five Bitsquad members who asked the best questions. A full recap of the AMA is below.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:20]
Thanks for coming to the AMA, the flood gates are now closed you will be unable to speak in this channel until the second portion. Tonight we will be interviewing @kimsamjoo the CEO of Umbrella Network. During the second portion Do Your Own Research (DYOR) and ask the team the best questions. Please introduce yourself to our audience and discuss the project?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:21]
Good afternoon everybody. Thanks for having me here today. Super excited to be with this community.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:21]
My name is Sam Kim, and I am the Founding Partner of Umbrella Network.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:21]
Looking forward to your questions and those of the community.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:22]
Ready when you are!

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:23]
What protocol is Umbrella Network building on? What type of blockchain are you using for your oracle solution?

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:23]
What makes you better than Chainlink or any other current oracles?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:24]
Umbrella Network is a cross chain solution. We’re currently running on Ethereum because it is the most mature and fully developed of the chains out there. But we’ll add support for others shortly. We’ll be launchign our oracle on Binance Smart Chain within the next month as well support for Polkadot, Solana and others as they come on line.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:25]
As for the second part of that question, our oracle is on a proprietary sidechain that runs on Proof of Stake. it’s kind of like Tendermint but designed and built specifically for the purposes of aggregating data and making them available for blockchain developers. Therefore, it is faster and cheaper than it would be for a generalized sidechain.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:27]
Oh so you are planning cross chain integration and allowing any project to build on your network? And yes most projects are still leveraging Ethereum as Polkadot and Cardano are not ready yet as smart contract platforms.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:29]
[In reply to The Cat ๐Ÿฑ [BitboyCrypto]]
There are many great oracles out there. And I don’t think the oracle market is a winner take all market. The needs of application developers are too varied and simply too complex for any one data provider to meet all of their needs. You see that in the centralized world where major data players address a specific market need.

Having said that, clearly Umbrella Network is very distinct and unique compared to the competition. For one, Chainlink runs on Proof of Authority. In other words, Chainlink grants a handful of oracles the authority to provide data. And therefore, Chainlink users must TRUST those data providers. I do not want to have to trust. We prefer economically managed systems that obviates the need for trust.

Furthermore, we are the lowest cost data provider. We bundle / aggregate thousands of pieces of data into a single blockchain transaction. Therefore, our costs are significantly cheaper than those who write one piece of data at a time.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:29]
Our goal is to make the cost of data as close to zero as possible.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:30]
[In reply to The Cat ๐Ÿฑ [BitboyCrypto]]
I believe strongly in the new wave of blockchains including ETH2.0. And so we want to support application developers wherever they are whether that’s on DOT or ADA or elsewhere.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:31]
So yes. We architected our system to be a simple and cost efficient cross chain solution

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:33]
[In reply to Sam Kim | Umbrella | Never DM You First (Umbrella)]
Makes sense.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:33]
What types of partnerships has Umbrella Network acquired?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:35]
Our partnerships have been both plentiful and diverse. Of course we formed partnerships with application develoeprs who are and will integrate our oracle service. Projects like MahaDAO, YOP Finance, Bridge Mutual and many more. But also with professional validators. Validators are the backbone of our technology and so we wanted to get professional and experienced validators to help us optimize the technology before opening it up to the general public.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:36]
We added our 3rd validator Huobi yesterday. Getting them integrated was very smooth and quick. The ones before Huobi were InfinityStone and Hashquark.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:37]
Hmmm… Why did it delete my last paragraph?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:37]
Well, let’s try again.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:38]
We also formed partnerships with projects like OIN to give our token holders a way to generate some yield. And we’re also working with insurance projects to protect the tokens that are staked with us.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:38]
Finished

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:40]
[In reply to Sam Kim | Umbrella | Never DM You First (Umbrella)]
Links

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:41]
towards the end of the interview you can share links with me so that everyone can learn more about Umbrella Network for themselves.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:42]
[In reply to Sam Kim | Umbrella | Never DM You First (Umbrella)]
Please explain your staking?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:45]
Umbrella Network is currently running a Proof of Stake system. We’re in the process of expanding that to run as a Delegated Proof of Stake. So, if you are a UMB token holder, you can delegate your token to one of the validators who will use your UMB token in proof of stake consensus. If the validator collects a fee for voting in the majority, they will share that fee with you on a pro-rata basis.

Second, we have two types of staking and rewarding programs currently. The first is a general staking reward that’s yielding 200+% last I checked. You simply stake your tokens in one of our vaults and earn rUMB. rUMB is our reward token that will be redeemed at a 1 to 1 rate within 1 year. The second staking program is a Uniswap LP Token staking program. We reward you with rUMB for providing liquidity in Uniswap.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:46]
I’d post the link to give you more information, but…

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:46]
Shieldy will probably delete it.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:46]
Done

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:47]
[In reply to Sam Kim | Umbrella | Never DM You First (Umbrella)]
What is Umbrella’s tokenomics?

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:48]
[In reply to Sam Kim | Umbrella | Never DM You First (Umbrella)]
Can rUMB be redeemed for the Umbrella Network token?

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:49]
What is the main problem that Umbrella Network is trying to solve?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:49]
Our goal was to distribute the maximum number of tokens possible directly to the community. At the same time, we wanted to extend the unlocking for everybody else as long as possible. So approximately 60% of tokens are distributed directly to the community. And much of it is through our rewards token rUMB.

Second, over 60% of the tokens have a 4 year linear vesting schedule including the team and foundation. And finally our Private token buyers are subject to a 2 year linear vesting schedule.

So we’re really focused on the long term holder and to put UMB into the hands of the community.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:50]
[In reply to The Cat ๐Ÿฑ [BitboyCrypto]]
rUMB will be redeemable for UMB in either 1 year or when we get on Mainnet and achieve specific business milestones. We will announce those milestones when we hit Mainnet this summer.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:50]
[In reply to Sam Kim | Umbrella | Never DM You First (Umbrella)]
what smart contract platform will you being using for mainnet?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:52]
[In reply to The Cat ๐Ÿฑ [BitboyCrypto]]
Today’s oracles are either 1) expensive and thus provide very little data types and update infrequently, or 2) they are not secure. If you look at Chainlink, they recently posted that a piece of data costs $6 under the assumptions of ETH = $300 and GWEI = 50. So even in this wildly optimistic conditions, their costs are way too high. In a more realistic scenario, we’re talking about $60 and more.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:52]
For the same price or less, Umbrella Network can write thousands of pieces of data. We currently support 750 data pairs. But we’ll easily add to that in the coming weeks.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:53]
We believe data must be cheap and readily available in order for application developers to achieve their vision. Projects like options, indexes and other more advanced financial projects require more data and cheaper data than what’s available today.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:54]
[In reply to Sam Kim | Umbrella | Never DM You First (Umbrella)]
Yes ETH gas fees are through the roof they really need to solve that scalability issue.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:54]
The point is that even when ETH gas is low, they’re too expensive.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:55]
yes

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:55]
The applications on our mobile devices are rich and engaging because we have great bandwidth and really cheap data. ETH2.0, DOT and others are solving the bandwidth issue. And Umbrella Network will solve the data cost issue

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:56]
[In reply to Sam Kim | Umbrella | Never DM You First (Umbrella)]
Great answers!

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:56]
[In reply to The Cat ๐Ÿฑ [BitboyCrypto]]
Thank you

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:56]
I’d post a cool sticker, but Shieldy….

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 17:57]
Will you work with other interoperable blockchains like Solana, Cosmos or any other solutions?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 17:58]
Absolutely. We’re looking at Solana, Fantom and others. But it’s too early for us to speculate on anthing at this time. Our smart contract code is light and very portable. Intentionally designed to be so.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 18:00]
So whos on the team of developers for this project?

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 18:00]
Where can the audience review the smart contract and has it been audited by any firms?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 18:02]
So many or most of the team has worked with me in the past. In cases like Miguel Morales, we’ve worked together for almost 10 years building highly performant systems primarily in digital advertising. Miguel’s been a blockchain developer since 2016. Our other engineers include 2 additional highly experienced blockchain developers, 1 devlops from Consensys and 1 from Amazon Web Services. Rounding out the team are our 2 backend engineers and 2 front end. So we have a great team that have worked together for many years building high performance systems.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 18:03]
[In reply to The Cat ๐Ÿฑ [BitboyCrypto]]
I’d post a link, but Shieldy would get mad at me.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 18:03]
But you can check out our Github. We haven’t opensourced everything, but there’s enough there for you to review.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 18:03]
Please include it in your links section.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 18:04]
[In reply to Sam Kim | Umbrella | Never DM You First (Umbrella)]
Great include the Github towards the end as well.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 18:07]
What benefits are there to holders of the UMB token?

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 18:07]
What is your long term product and growth strategy and what are you doing in the intermediate term to increase the usecase of the UMB token?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 18:09]
UMB is one part governance token and one part liquidity / staking token. In our DPoS model, token holders elect their representatives in the governance of the ecosystem. We believe it’s impossible for every token holder to be informed enough to vote directly on serious matters. But they can vote for the representative in the governance of the ecosystem.

Second, UMB token holders are rewareded for delegating their tokens to validators on the network. Validators who vote correctly will be rewarded. And the rewards will be shared on a pro rata basis with the tokenholders.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 18:11]
[In reply to The Cat ๐Ÿฑ [BitboyCrypto]]
The product and growth strategy is really to be the lowest cost data provider and the provider of the most robust data set in the market. We have the technical architecture to give us the cost advantage. And now, we’re in the process of onboarding more data types. While we have 750 data pairs in our contracts today compared to 250 or so for our competitors, we’re adding more data everyday.

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 18:11]
By having data that others simply don’t have, we will gain adoption.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 18:11]
You mentioned that UMB is a governance token, and recently Umbrella Network has announced, an Ambassadorship program. How does the governance token tie into the Ambassadorship program, and how many users will the ambassadorship accept?

Sam Kim | Umbrella | Never DM You First (Umbrella), [07.04.21 18:13]
We’re really excited to launch the Ambassador program. Our head of marketing John Chen and a small group of community members have worked really hard to put that together. Having said that, we intentionally have not set hard rules around the program. We want to see where it goes and let the program evolve based on what works and doesn’t.

Ambassadors will not have a direct governance role. It doesn’t preclude them from serving in governance, but it doesn’t necessarily give them any advantage.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 18:18]
Here’s all the links that Umbrella Network has provided if anyone wants to learn more and DYOR about the token and Oracle solution.

The Cat ๐Ÿฑ [BitboyCrypto], [07.04.21 18:18]
[Forwarded from Sam Kim | Umbrella | Never DM You First (Umbrella)]
โ˜‚๏ธ โ˜‚๏ธSocial Media Links โ˜‚๏ธโ˜‚๏ธ

๐Ÿ‘‰Telegram channel: https://t.me/umbrellanet

๐Ÿ‘‰Announcements channel: https://t.me/umbnetannouncement

๐Ÿ‘‰LinkedIn: https://www.linkedin.com/company/umbrella-network

๐Ÿ‘‰Twitter: https://twitter.com/umbnetwork

๐Ÿ‘‰Medium: https://medium.com/umbrella-network

๐Ÿ‘‰Discord: https://discord.com/invite/ApFRNhYtRY

[Forwarded from John Chen | Umbrella Network]
Github: https://github.com/umbrella-network