Proposal: Add MELD token to Aada V1 as an asset for borrowing (Approved)

Graveyard
1

Proposal Description

We would like to add the MELD token in Aada V1 as an asset for borrowing.

Short Summary

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.

Motivation

Project and token overview

  1. 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.

  1. 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?

  1. 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.

  1. 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?

  1. 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.

  1. 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)

  1. 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:
    1182×722 80.3 KB

Conclusion

Be Your Own Bank.

References

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