I would like to add the MELD token in Aada V1 as a collateral asset for borrowing.
4 August 2022
MELD is a decentralized and trustless lending protocol built on the Cardano Blockchain using smart contracts and governed by the MELD token. It provides a fast, safe, and transparent set of tools for anyone to lend and borrow crypto and fiat currencies. MELD lends fiat currency provided by fiat lenders to borrowers that collateralize their cryptocurrency in a MELD Smart Contract. The lender receives an interest rate from secure investments, whilst the borrower can maintain their crypto positions and see them grow.
Project and token overview
- MELD is the first decentralized protocol that incorporates fiat loan capabilities
into the crypto ecosystem. This enables low-friction transactions between crypto
and fiat positions while maintaining control of digital assets.
- The MELD token is used for governance of the protocol, and you can stake it to earn yield.
Explain the positioning of the token in the Cardano ecosystem. How will it benefit the protocol?
- MELD offers significant capital efficiency gains in lending and borrowing compared
to both centralized blockchain solutions and traditional fintech. Running on a
third-generation blockchain, MELD inherits Cardano’s features including low
transaction costs, high throughput and Cardano has more than $50 billion staked within the blockchain. Built on top of the Cardano blockchain, MELD capitalizes on transaction efficiency, which drastically reduces fees by more than 99% as compared to ETH-based solutions.
- MELD offers DeFi infrastructure for wrapping assets from other blockchain networks
(ETH, Polygon) to the Cardano blockchain that MELD uses via Akamon. Akamon
is a protocol that connects the Cardano and Polygon blockchains together, allowing
assets to transfer seamlessly to and from both blockchains thus bringing more utility to both blockchains.
What’s the asset’s utility?
- Borrowers and lenders alike get MELD tokens as rewards for using the protocol. The
MELD token provides security and benefits to users and is central in the operations
of functionality like liquidity pools, market-making, and protocol governance.
- Our token is the medium of exchange under the MELD protocol. Token holders are
given incentives to not only utilize their MELD tokens when desirable but maintain a
minimum balance to maximize their future earnings under the protocol. To maintain
holding utilization, staking provides an annual percentage yield (APY), and fee
reductions further strengthen the functions of MELD as a utility for lending and
long-term appreciation. Additionally, once reaching a significant milestone of
decentralization, introducing protocol governance requires maintaining at least a
a certain fraction of total supply.
Token data (Emission schedule, Market data)
- The protocol has a fixed supply of 4 Billion MELD tokens with deflationary mechanisms of buybacks and liquidity pool yield. The initial distribution is the following:
Adding MELD as a collateral option on Aada Finance will benefit both projects community
- Project: www.meld.com
- Whitepaper: MELD Whitepaper 1.6 - Google Drive
- Document portal (GitBook): https://docs.meld.com/
- Cardano asset ID: 6ac8ef33b510ec004fe11585f7c5a9f0c07f0c23428ab4f29c1d7d10
- Audits (if any): TWEAG; https://meld-labs.github.io/technical/assets/tweag-audit-202112.pdf
- Communities (Discord, Telegram, Reddit, Governance Forum):