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MELD; Exploring the First Non-Custodial DeFi Banking Protocol




Cryptocurrencies have exploded into a trillion-dollar industry in contemporary times, sparking a wave of worldwide financial disruption. Things change quickly in the crypto space, and decentralized finance (DeFi) is a current trend. It is undoubtedly an exciting space to be.

DeFi is an umbrella term for a variety of applications and projects in the public blockchain space geared toward disrupting the traditional finance world. Inspired by blockchain technology, DeFi is referred to as financial applications built on blockchain technologies.

Now to our focus. Launched on the 3rd of February 2022 by a Singaporean team headed by Ken Olling, Hai Nguyen Quang, Lise Wessel, Thomas Tallis and Nicholas Collinson, MELD is the first DeFi, non-custodial, banking protocol. It provides a range of financial tools and solutions built around leveraging cryptocurrency assets as collateral for fiat or crypto based loans.

In simpler terms, It is a platform where users can securely borrow/lend both crypto and fiat (USD and EUR), while also allowing MELd Token holders to stake and earn yields and rewards from MELD staking pools.

MELD focuses on decentralized finance (DeFi), with the utopian goal of enabling more than 2 billion individuals, who are either underbanked or have no access to banking services, to access tools and solutions built around leveraging cryptocurrency assets.

Services offered by MELD include creating cryptocurrency-backed loans, earning an interest return for lending fiat to borrowers and participating in reward incentive programs.

MELD enables an instant loan against cryptocurrency holdings at a competitive APR, or to receive a credit line and only pay interest on what you use.

It has been branded as a world-class mDeFi protocol using the Cardano platform, MELD capitalizes on Cardano’s transaction efficiency compared to older blockchains, which drastically reduces fees by more than 99% compared to ETH-based solutions.

MELD; Exploring the First Non-Custodial DeFi Banking Protocol

MELD uses smart contracts to ensure complete transparency and fairness for all parties including both minting and distribution of tokens. 

Below is a sketch of the unique features of MELD:

  • Cash Loans: Instant loan against cryptocurrency holdings at a competitive APR or credit line. Interest payment only on usage.
  • Protection of Crypto Holdings: Leveraging the value of crypto to borrow cash.
  • Built on Cardano: The MELD protocol is built on the Cardano blockchain, a next generation blockchain delivering fast, safe and cost effective infrastructure for a new generation of DeFi.
  • Decentralized and Trustless: A world-class DeFi protocol, it uses smart contracts to ensure complete transparency and fairness for all parties.
  • Borderless and Democratic: Economic and political changes do not alter MELD’s smart contracts. The DeFi protocol is safe from changing laws or unexpected events.
  • Stable Yield Earnings: Earning of yields from staking pools as well as rewards in the MELD token.
  • MELD allows full ownership of crypto assets with an instant liquidity framework.

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MELD is distinctive in terms of token launches. At the moment, it has close to 40,000 token holders. It was the first company ever to carry out a successful ISPO(Initial Stake Pool Offering), which attracted $1B worth of ADA tokens in less than 3 months and helped the company raise $10M for its own funding ($45M total raised to date via an additional private token sale).

The MELD token can be staked on the MELDapp to provide insurance for the MELD protocol. In that process, MELD stakers will earn an APY through protocol fees and liquidity reward programs (up to 15% at the moment). The MELD token is used for governance of the protocol, and as mentioned earlier, users can stake it to earn yield. 

Basically, the MELD protocol was founded to integrate the conflicting on-chain (crypto) and the off-chain (fiat) worlds together, as well as uniting the many Blockchains and DeFi protocols.

Their service is anticipated to gain a strong and early traction in European nations and countries such as El Salvador and Nigeria, where cryptocurrency is either already fiat currency or is in mainstream usage.

MELD token is already available for transactions on crypto exchanges like Bitrue and FMFW since the 3rd of February, 2022. Users can transact on the MELDapp via iOS, Android or in the browser to easily access their digital assets to lend, borrow and manage the services offered.

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