Umami

Umami is a structured yield protocol deployed on Arbitrum. Users deposit USDC, BTC or ETH into vaults that place capital into GMX liquidity pools to earn trading fees, funding rates and liquidation revenue, while short perpetual positions hedge out the directional exposure from the non-stable components, leaving depositors with close to market-neutral yield. It addresses liquidity tokens carrying built-in long exposure that ordinary users cannot hedge on their own.

Multiple vaults act as hedging counterparties to one another, netting delta internally before opening external long or short positions on GMX or similar venues, with algorithms adjusting hedges toward a target exposure. Vaults are non-custodial and share tokens can be transferred or used as collateral. Its GM vaults currently source price data from Chainlink Data Streams, and the team, treasury and operations are managed by Bonsai DAO. It is a separate entity from the open-source web analytics platform of the same name and sits in the institutional-facing yield segment on Arbitrum.