In 2021, Cardano is one of the blockchain platforms that have the strongest growth in terms of market capitalization. Since the mainnet of Cardano in September 2021, hundreds of projects have released their plans to deploy ideas on the blockchain. At the same time, lending is an indispensable lego part of every new blockchain ecosystem.
MELD has its reputation for over 600 million ADA staked in the MELD staking pools via a new method for fundraising, ISPO (Initial Stake Pool Offering).
The article below will provide all detailed information about MELD, including:
- What is MELD? How does it work?
- All detailed information about MELD Tokenomics and how to get, buy MELD tokens?
- Roadmap and details about the team, investors, and partners.
- Is MELD a good investment?
Let’s explore the MELD project!
What is MELD?
MELD is a lending protocol built on Cardano that facilitates users to decentralized financial services such as lending/borrowing and liquidity providing. Users can deposit their crypto assets to borrow fiat currency while they have to pay the interest to lenders and the Meld platform.
By applying a new method named ISPO (Initial Stake Pool Offering) for fundraising, MELD gained lots of attention and support from the community. This means users can stake their ADA in the staking pools of MELD via the Yoroi wallet or the Daedalus wallet to earn tokens.
The MELD team will use ADA rewards from the staking process to develop the project and the ADA stakers will receive MELD tokens instead of ADA rewards. ADA stakers have two options:
- Stake ADA to earn 50% rewards as MELD and 50% rewards as ADA.
- Stake ADA to earn 100% rewards as MELD instead of ADA.
Those staking pools are created and owned by MELD. At the writing time, there are over 10 MELD staking pools available for ADA holders to stake, and the total ADA staked is over 500M. The ISPO program of MELD started on July 1st, 2021, and the rewards were distributed to delegators after it ended.
At the moment, users can stake $MELD on the MELD platform with a bonus APY of 15%. We think it's an attractive rate and it contains no such impermanent loss thanks to the single stake.
How does MELD work?
MELD has a lending/borrowing service as the primary product on Cardano. That supports various crypto assets as collateral such as BTC, ADA, ETH, and BNB.
Fiat lenders provide liquidity to the MELD protocol through MELDapp. They will earn yields from the protocol which come from borrowers, trading fees, and protocol rewards.
To borrow fiat currency, borrowers must deposit crypto assets such as ADA, BTC, ETH, or BNB to gain access to those loans. They can take a fiat loan up to 50% of the collateral and pay the interest monthly. Especially, they can decide to receive the borrowed fiat to their account or to MELD Debit Card.
MELD Vaults are single-sided MELD/token liquidity pools built on the MELD protocol. Borrowers deposit their crypto assets as collateral to those liquidity pools that will be connected to other external DeFi platforms to generate trading fees.
MELD Debit Card functions like VISA/MasterCard. Users can pay for services and goods with the card, or use the card to store the borrowed fiat.
MELDapp, like Metamask, is the main interface where users can interact with the MELD products. The application will be available on Chrome Extensions, iOS, and Android devices.
What is MELD Token?
MELD is the utility and governance token of the MELD protocol. It can be used to pay for transactions on the protocol or stake to earn 4% APY rewards. The APY comes from 50% of protocol fees.
Detailed information about MELD Token
MELD Key Metrics
- Token Name: MELD.
- Ticker: MELD.
- Blockchain: Cardano.
- Token Standard: CNT
- Contract: Updating...
- Token Type: Utility and governance.
- Max Supply: 4,000,000,000 MELD.
- Circulating Supply: Updating...
MELD Token Allocation
The MELD Token has a total max supply of 4,000,000,000 tokens distributed as follows:
- Private Sale: 30%.
- Team: 17.5%.
- ISPO: 20%.
- Liquidity Rewards: 20%.
- Foundation: 5%.
- Partnerships: 7.5%.
MELD Token Sale
MELD Token Release Schedule
- 4% of the private sale tokens are released to provide MELD liquidity to the platform.
- Team, advisors, and partners will have their tokens locked for 9 months then release monthly 4% of the locked tokens.
MELD Token Use Case
MELD issues MELD as its governance token, having functionalities as follows:
- Staking: MELD holders can stake MELD to contribute to the protocol insurance.
- Fee reductions: Users can get the platform fee reduced while holding MELD tokens.
- Governance: MELD holders can vote on changes and updates of the MELD protocol.
How to get MELD Token
You can stake your ADA in the staking pools created by MELD to earn MELD airdrops.
How to buy MELD tokens
At the moment, there are CEXs and DEXs where you can buy MELD tokens:
- DEXs: SundaeSwap, Muesliswap, CardWallet, OccamX, Maladex.
- CEXs: Bitrue, FMFW, Bequant, HITBTC, Changelly,...
How to store MELD Token
Roadmap & Updates
As of Oct 17th, 2021, MELD is still developing most targets for Q3 2021. Many will raise questions about the development process of the MELD project.
Team, Investors, and Partners
MELD has formed partnerships with other Cardano-based projects such as VENT Finance, SundaeSwap, OccamFinance, and World Mobile. They are all potential partners and receive support from the Cardano community. Especially, MELD and VENT teamed up with Polygon to build a Polygon-Cardano bridge named ADAmatic.
Is MELD a good investment?
Currently, MELD has a strong development team, a wide range of partnerships, and investors. Moreover, the team has been funded in the private sale, the ISPO program, and the public sale on VENT Finance (upcoming). There are some notable highlights from Coin98 for investment considerations:
MELD has released a detailed plan to tackle the technical challenges of the lending protocol. Along with the core protocol, they offer more services such as the crypto-backed loan, crypto-backed lines of credit, MELD Debit Card, and MELDapp. They are focusing on only one lending sector and building services around it.
The MELD team provides lending services to bridge the gap between crypto holders and real-world payments, showing the ambition of the project. Since other DeFi projects are focusing on lending/borrowing crypto assets, MELD is going another way to lend customers fiat currencies such as USD or EUR.
The ISPO program of MELD is now having over 500M ADA staked in their staking pools. This shows the potential and attractiveness of the project. It’s estimated that the APY of staking pools is about 5%, and the ISPO program will last for about 5 months. This means the MELD team will have a great fund coming from the ADA rewards.
MELD's goal is to upgrade DeFi to RealFi. Credit cards, mobile apps, and banking accounts are the best means to approach the global frontier which exists the largest user base, bigger than the crypto market.
In my point of view, a beta version or a product demo will be appropriate for the community since the platform has not officially operated yet. Therefore, it’s worth keeping up with the news from the MELD team.
And as usual, whether it is worth investing or not, Do Your Own Research before investing and be responsible for your investment.
In the Cardano ecosystem, there are other projects similar to MELD such as Liqwid, Paribus, and Nexo, etc. They all provide lending services with different features.
According to the ADA staking number, it’s undoubted that MELD is the biggest project using this ISPO program. MELD has an ambitious target that allows customers to use borrowed fiats in the real world via its platform and tools. Therefore, we will update more about MELD in the future. So stay tuned!
And that is all you need to know about MELD and its MELD token. I hope you’ve gained helpful insights to understand the potential behind MELD.
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