What is MELD?
MELD, a liquidity protocol that operates in a decentralized manner on the Cardano blockchain, enables the provision of competitive interest rates on crypto and fiat-denominated loans. It serves as a suitable option for individuals and companies that are deeply involved in the cryptocurrency industry and require funds to operate within the conventional economy.
In the MELDapp, users have the option to secure their cryptocurrency as collateral to obtain fiat currency loans that are transferred to their bank accounts upon completion of the KYC process. Once the loan is repaid, the smart contract is terminated, and the cryptocurrency used as collateral is returned to the borrower. Additionally, MELD tokens are awarded to users as incentives for utilizing the protocol, and they have a pivotal function in various operations like liquidity pools, market-making, and protocol governance.
MELD presents advantages to liquidity providers, which encompass consistent interest-based earnings for providing liquidity for fiat loans and lucrative returns from MELD Vaults that serve as automated market makers (AMM). The protocol is open-sourced and has the backing of the Cardano community, with the MELDapp being accessible through iOS and Android platforms, as well as a Chrome extension or API for developers and services.
What is MELD Token？
Within the MELD ecosystem that is established on the Cardano blockchain, the MELD token functions as an inherent utility token.
- Rewards: Participants using the MELD protocol, including borrowers and lenders, are granted MELD tokens as incentives, encouraging their active involvement and contribution to the ecosystem.
- Liquidity Pools: The liquidity pools in the protocol rely on the MELD tokens, which are vital in ensuring seamless and effective exchanges between borrowers and lenders.
- Market-making: MELD tokens are utilized in market-making procedures, serving as a source of liquidity to the platform and reinforcing the general stability of the ecosystem.
- Protocol governance: The MELD token holders can engage in protocol governance by putting forth proposals and casting votes on modifications and enhancements to the protocol, guaranteeing the ecosystem’s decentralized and community-driven nature.
MELD Crypto Price
The highest price paid for MELD is $0.1893, which was recorded on Feb 04, 2022. At the time of writing, MELD coin market cap is 28,411,533. The current MELD coin price is $0.0177 per coin. The 24-hour trading volume for the coin is $1,178,704.
Where can you buy MELD?
Both centralized and decentralized cryptocurrency exchanges allow trading of MELD tokens. MEXC Global is the most well-liked marketplace for purchasing and selling MELD tokens.
How to Buy MELD Tokens?
You can use the MEXC Global search bar to search for “MELD” to view available trading pairs.
And you can also find a detailed guide on how to buy MELD token.
What is the Use Of MELD?
As a decentralized liquidity protocol, MELD provides numerous applications and advantages, with a principal emphasis on furnishing loans backed by cryptocurrency in both fiat and crypto denominations.
- Crypto-backed loans: By using the MELDapp, users can offer their cryptocurrency as collateral to obtain either fiat or crypto loans, allowing them to access capital without liquidating their crypto assets. This approach helps them circumvent triggering a taxable event (capital gains tax) and sustain their crypto market exposure.
- Financing life events or expenses: MELD provides a means for individual crypto investors to secure loans for substantial life events like purchasing a home, getting married, or covering education expenses, all without needing to sell off their cryptocurrency holdings.
- Business financing: Businesses operating within the cryptocurrency industry that have sizeable cryptocurrency holdings can leverage MELD’s crypto-backed loans to fund their operational and capital expenses, enabling them to function within the conventional economy while retaining their crypto assets.
- Earning rewards: Engagement in the MELD platform by both borrowers and lenders results in the reception of MELD tokens as rewards, encouraging active involvement and contribution to the ecosystem.
- Liquidity provision: MELD presents advantages to liquidity providers, including dependable, interest-based earnings for providing liquidity for fiat loans and substantial returns from MELD Vaults that serve as automated market makers (AMM).
- Decentralized governance: Protocol governance is decentralized in MELD, with MELD token holders having the ability to contribute by suggesting and voting on modifications and enhancements to the protocol. This approach ensures that the ecosystem remains transparent, community-driven, and decentralized.
What Problem Does MELD Coin Solve?
- Access to capital without liquidating crypto assets: Numerous crypto investors and businesses are hesitant to transform their cryptocurrency assets into fiat currencies, given the possibility of capital gains tax and the decreasing purchasing power of fiat. MELD provides crypto-backed loans, allowing users to acquire capital in either fiat or cryptocurrency denominations without liquidating their cryptocurrency assets.
- Bridging the gap between traditional finance and DeFi: MELD serves as a link between conventional finance and DeFi by assisting users in acquiring capital for various intentions, such as life events, business operations, or as a line of credit, all while remaining engaged in the conventional economy. By providing crypto-backed loans, MELD enables users to obtain financing while retaining their involvement in the crypto market.
- Decentralization and transparency: MELD is constructed on the Cardano blockchain, utilizing smart contracts to streamline lending and borrowing in a decentralized, transparent, and trustless approach. This approach diminishes dependence on centralized financial institutions and affords users greater authority over their assets.
- Tax implications: Converting cryptocurrency assets into fiat currencies can trigger taxable events, such as capital gains tax, but MELD presents an alternative by furnishing loans backed by cryptocurrency assets. This approach enables users to access funds without triggering such tax events.
- Incentivizing participation: MELD promotes participation by offering MELD tokens as rewards to both borrowers and lenders using the protocol, inspiring active engagement and expansion within the ecosystem.
- Providing benefits for liquidity providers: MELD delivers advantages to liquidity providers, such as dependable, interest-based earnings for fiat loan liquidity providers and substantial returns from MELD Vaults (automated market makers) for other institutional liquidity providers. This approach motivates the provision of liquidity and bolsters the platform’s stability.
MELD endeavors to develop an effortless, transparent, and decentralized lending and borrowing ecosystem within the DeFi sphere by tackling these challenges. In doing so, it caters to the requirements of both cryptocurrency investors and businesses.