MELD, the First Banking Protocol to Successfully Launch an ISPO
Fundraising is an integral part of every new startup and crypto project as not every project is backed by robust initial financial support. In the crypto ecosystem, people have implemented several ideas to raise funds with the most popular and successful one being Initial Coin Offering, Initial Exchange Offerings, and Initial DEX offerings.
However, MELD, the world’s first non-custodial banking protocol has developed a new and optimized method for fundraising, known as ISPO. An Initial Stake Pool Offering (ISPO) is an exciting new way for the investors and the community to contribute to MELD by using the Cardano blockchain.Â
What is MELD ISPO?
MELD ISPO ensures there is complete fairness in the fundraising process. It is different from IDO, ICO, and IEO as it generates funds using a unique process and does not keep any funds delegated.Â
The ISPO is a new and innovative method for fundraising that is designed to be community-oriented and safe for every party involved. Users can participate in the ISPO by delegating their ADA using a Yoroi or Daedalus wallet to one of MELDs staking pools.Â
During the ISPO, MELD Labs will receive either 100% or 50% of the staking rewards depending upon the staking pool used. MELD has allocated 800m MELD tokens that will be airdropped within 5 minutes of the MELD protocol launch.Â
The ISPO has already begun on July 1, 2021, and will continue till December 8, 2021, with the launch of the MELD protocol. The pool was immediately filled within 24 hours with 64m ADA (around $90m) and is growing daily. After five days, the ISPO had four more pools opened that filled up with 133m ADA (around $200m), and after a week, the total value reached 156m ADA.Â
MELD – For Your Mental Wealth
MELD is the world’s first decentralized and non-custodial banking stack for DeFi that unlocks the value of crypto assets in fiat while maintaining a long position and not triggering a tax event. MELD is a decentralized and trustless network built on the Cardano blockchain by using smart contracts and is governed by the MELD token.Â
MELD Business Model
MELD’s business model is designed to lend fiat currency to the borrowers that collateralized cryptocurrency in a MELD smart contract. The moneylender receives a high-interest rate for secured investments, and the borrower gets to maintain their crypto position. The crypto-assets can grow with an average of 32% CAGR in a year.Â
The collateral is staked in community-managed vaults (liquidity pools) to generate yield. 40% of the protocol revenues go to MELD stakers, and the remaining is used for various functions such as products development, treasury, ecosystem development, and operations.Â
MELD business model operates on these functionalities:
– Fiat Liquidity Lending: Fiat liquidity providers lend fiat currency to the MELD protocol using the MELDapp and earn a high-interest yield.
– Crypto Collateral: For borrowers to become eligible for the fiat loans, they must stake their digital assets to the MELD loan smart contract.Â
– Fiat Borrowing: MELD offers two borrowing services, crypto-backed loans and a line of credit. However, for both the loans, the borrower must deposit 2x cryptocurrencies.
– MELD Vaults (LPs): MELD runs liquidity pools that are single-sided. When a user deposits cryptocurrencies to take a loan, the assets are locked in the smart contracts.Â
– The MELD Token: MELD token offers utility functions for holders, such as using MELD tokens to pay for transactions on the protocol and staking MELD to earn APY.
– Loan Repayment: MELD provides crypto-backed loans and a line of credit to borrowers which are paid off monthly including the principal amount and interest.
– Crypto Collateral Returned: On maturity of the loan, the crypto collateral is unlocked and withdrawn from the liquidity pool to the user’s wallet.Â
– Fiat Liquidity Returned: If the fiat lender chooses to withdraw their fiat deposit, the cryptocurrency assets are then sold to make up for the fiat value.Â
MELD is an excellent project that brings fiat banking facilities to the crypto world. It has an expert team of 8 Haskell developers, of which four are women, which is a rarity for the crypto ecosystem. By launching the ISPO, MELD has set new standards for transparency and quality in the crypto ecosystem, and several projects will follow suit.
