MELD (Singapore) focuses on decentralized finance (DeFi), with the long-term objective of allowing more than 2 billion people – who are either underbanked or have no access to financial services at all – to get access to tools and solutions based on cryptocurrency assets. MELD’s services include the creation of cryptocurrency-backed loans, the earning of interest on fiat loans to borrowers, and participation in reward incentive schemes.
MELD allows you to get a quick loan against your cryptocurrency holdings at a competitive interest rate, or to obtain a credit line and pay interest only on the funds you use. MELD is unusual among token launches in that it already has almost 40,000 token holders. MELD was the first company to successfully complete an ISPO (Initial Stake Pool Offering), which raised $1 billion in crypto (in ADA tokens) in less than three months and aided the company in raising $10 million in its own funding ($45 million total raised to date via an additional private token sale).
MELD is the first decentralized protocol to integrate fiat lending functionality into the cryptocurrency ecosystem. MELD offers low-friction trades between crypto and fiat positions while preserving the customer’s sovereignty over their digital assets. The MELD token may be staked on the MELDapp to guarantee the MELD protocol’s security. MELD holders will receive an APY as a result of protocol fees and liquidity incentive schemes (up to 15 percent currently). MELD was intended to connect the on-chain (crypto) and off-chain (fiat) worlds, as well as to bring together the several Blockchains and DeFi protocols.
MELD was created as a world-class DeFi technology, using the Cardano blockchain and smart contracts to provide total transparency and fairness for all stakeholders (including both the minting and distribution of tokens). MELD tokens are used to manage the system and may be staked to earn yield. MELD takes use of Cardano’s superior transaction efficiency over earlier blockchains, which significantly cuts costs by over 99 percent when compared to ETH-based solutions.
The service is likely to acquire significant and early popularity in the European Union and nations such as El Salvador and Nigeria, where bitcoin is already a fiat currency or is in widespread use. MELD tokens will be available for buy today, February 3rd, 2022, on popular cryptocurrency exchanges such as Bitrue and FMFW. MELD will provide novel financial services that have never been offered by conventional banks, including not just regular cryptocurrency-backed loans, but also the company’s own Genius LoansTM. A Genius Loan requires the user to pledge their bitcoin as collateral and get a loan at a slightly higher interest rate. The consumer is solely responsible for loan interest, while the return created by the crypto collateral pays down the debt.
MELD also offers a Crypto-Backed Credit Line (CBCL), which is a useful and flexible instrument for meeting fiat currency obligations while incurring interest solely on the amount of fiat spent. The CBCL works in combination with the MELD debit card, allowing users to make purchases both in-store and online. The CBCL operates similarly to a fiat loan, with cryptocurrency collateralized via a smart contract and up to 50% of the collateral value available as a line of credit.
Margin calls and liquidation events function in the same way as they do with the MELD Loan in the line of credit product. Users may access their digital assets using the MELDapp on iOSTM, AndroidTM, or in the web to lend, borrow, and administer the services provided by MELD. Due to the fact that clients retain control of their funds at all times, security is significantly strengthened over competing wallets.
Finally, MELD permits the creation of so-called ‘MELDed assets,’ which allow for the direct integration of tokens from other blockchains like as BTC, ETH, and BNB into the third-generation Cardano smart contract enabled blockchain. This not only enhances crypto liquidity, but also enables users to hold their preferred cryptocurrency for an extended period of time rather than being forced to utilize solely Cardano’s ADA tokens. MELD also benefits from Cardano’s greater performance and user visibility.
“We are thrilled to provide billions of people with a new means to access strong financial instruments, goods, and services – made even more powerful and inventive by the MELD protocol,” said Ken Olling, CEO of MELD. “Offering the ability to use bitcoin as collateral for a fiat loan is advantageous for a variety of reasons, not the least of which is protecting highly volatile cryptocurrencies from being compelled to sell at a market bottom. We are really eager to give our consumers with novel financial products and services in the months ahead as MELD tokens become extensively traded on several platforms.”