Overview
Meld is a decentralized protocol for users to take out fiat loans collateralized by their crypto assets. The deposited collateral is used for yield farming until the loan is paid back. Meld is based on the Cardano blockchain and the primary innovation is the decentralization of the fiat side of the loans. This project is still in development with MELD wallet coming in Q4 2021 and Meld Yield Vaults coming in Q1 2022.
3 Key Highlights
- Users can take out crypto-backed fiat loans to avoid a taxable event
- Built on the Cardano blockchain
- Fully decentralized, including fiat component
Value-add
Why is ecosystem valuable?
Individuals may have significant crypto holdings, but need fiat for a life event like buying a house or getting married. Businesses may be primarily transacting in crypto, but need fiat to pay bills. For both individuals and businesses, fiat loans can help them avoid or delay selling crypto and triggering a taxable event.
Objectives
Objective 1: Build a strong treasury to defend against margin calls
Objective 2: Always keep LTV above 100%
Objective 3: Create products that help the community