PenumbraPrice

(UM)

Penumbra is a specialized Layer 1 blockchain within the Cosmos ecosystem designed for complete privacy. Unlike transparent networks where transaction details are public, Penumbra utilizes advanced zero-knowledge proofs (zk-SNARKs) to shield all transactions by default. It functions as a private, cross-chain Proof-of-Stake (PoS) network and decentralized exchange (DEX). By integrating the Inter-Blockchain Communication (IBC) protocol, it serves as a "shielded pool" for the broader ecosystem, allowing users to bridge and trade assets privately without exposing their transaction history or balances to the public.

The $UM token serves three main purposes: network fees, staking, and governance. It is used to pay for transaction costs, although the network also supports "fee-abstraction," allowing users to pay gas in other assets like stablecoins. For staking, $UM is used to secure the network, with participants earning rewards for their contribution. Furthermore, it enables private on-chain voting, allowing token holders to participate in governance decisions without revealing their individual voting choices. The token structure is designed to facilitate seamless cross-chain interaction while maintaining the network's core privacy principles.

Shielded Staking is a unique feature of Penumbra that allows users to delegate their tokens to validators privately. Unlike other chains where staking activity is visible, Penumbra ensures that your delegation choices and holdings remain confidential. When you stake $UM, you receive delegation tokens ($delUM) specific to your chosen validator. These $delUM tokens are protocol-native liquid staking tokens representing your share of the validator’s pool. Because these are liquid, they can often be swapped for other assets on the network’s internal exchange, providing liquidity and flexibility that traditional staking models lack.

Traditional decentralized exchanges are often vulnerable to frontrunning bots that exploit visible transaction data. Penumbra addresses this through ZSwap, which utilizes sealed-bid batch auctions. Instead of processing trades individually, all trades within a block are batched together and executed at a single clearing price. This mechanism conceals individual trade amounts and prevents bots from jumping ahead of retail orders. This design ensures a fairer trading environment where price discovery is efficient and private data remains protected. Additionally, the project has undergone extensive security audits by firms like Zellic and NCC Group.

To interact with Penumbra, users require the Prax Wallet, a specialized browser extension. Unlike standard wallets, Prax is designed to function as an "ultra-light node" that performs intensive cryptographic proving locally on the user's device. This ensures that private keys and sensitive data never leave your computer. If users experience a "Block Sync Error," it is typically resolved by updating the RPC endpoint in the wallet settings to a community-provided provider. Currently, the wallet is available for Chromium-based browsers to support the heavy local computation required for zero-knowledge proofs.

$UM can be traded on major platforms such as the LBank exchange. When it comes to managing your assets, Penumbra features a standard 7-day unbonding period for unstaking tokens. However, because the network utilizes liquid $delUM tokens to represent staked positions, users often have the option to swap their staked assets for other tokens on the DEX without waiting for the full 7-day period. This provides a significant liquidity advantage for participants who may need to exit their positions quickly while still contributing to the network's Proof-of-Stake security model.