As decentralized businesses built on the blockchain continue to multiply, yet another new company has recently entered the market, and it’s reaching out to level the financial playing field between the ‘haves’ and the ‘have nots’ this time round.
Meld is an innovative new startup launching today, but unlike the majority of crypto startups that have just started out, this DeFi banking platform is eccentric as its token already claims close to 40,000 token holders, GlobalWire reports. MELD token is already on its way to getting listed on leading crypto exchanges Bitrue and FMFW as well.
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What Does Meld Do?
Simply put, Meld is a platform that lets people use cryptocurrency as collateral for getting loans in fiat (traditional currency such as U.S. dollars). It enables low-friction transactions (friction cost refers to the total direct and indirect costs associated with the execution of a financial transaction) between crypto and fiat positions, becoming the first to incorporate fiat loan capabilities into the crypto world.
Meld is engineered to be a world-class DeFi protocol that’s powered by the Cardano blockchain and smart contracts, hence ensuring complete transparency and fairness for all parties (including both the minting and distribution of tokens). Meld capitalizes on Cardano’s transaction efficiency over older blockchains, and this effectively reduces fees by more than 99% in comparison to Ethereum-based solutions.
Furthermore, by utilizing the MELD app, users can stake MELD tokens to provide insurance for the Meld protocol. In doing so, stakers will earn an APY through protocol fees and liquidity reward programs (up to 15% currently), GlobalWire notes.
First To Carry Out A Successful ISPO
Singapore-based Meld was the first company ever to carry out a successful ISPO (Initial Stake Pool Offering), which attracted $1B US worth of crypto (in ADA tokens) in less than 3 months and helped the company raise $10M US for its own funding ($45M total raised to date via an additional private token sale).
Ken Olling, CEO of Meld, said in an interview with VentureBeat, more than 2 billion people in this world don’t have a bank account, or are so poor that they don’t require one. This is where Meld supposedly comes into the picture, allowing such people to leverage cryptocurrency assets as collateral for fiat or crypto-based loans, and therefore providing them financial solutions to lean on through this method.
“We are excited to offer billions of people a new way to access powerful financial instruments, products, and services.”