UMA is an optimistic oracle that uses economic guarantees to secure markets. Unlike mechanically restrictive price feed oracles, an optimistic oracle is able to serve any arbitrary data on-chain. UMA’s flexible oracle serves data for uses including a cross-chain bridge, insurance, custom derivatives and prediction markets among other things.
The UMA Protocol also provides various smart contract templates that are automatically secured by its optimistic oracle. Among these are contract templates and integrations for creating synthetic tokens, predictions markets, "KPI options" and structured financial products.