There have been numerous attempts to decentralize the lending and borrowing segment in finance. Most of these efforts focus solely on cryptocurrencies, yet MELD takes a different approach. Merging crypto and traditional currencies under one banner as part of the Cardano ecosystem creates another form of decentralized finance.
Combining DeFi And Traditional Finance
Whereas the first generation of decentralized finance projects primarily focuses on disrupting finance, other projects look a bit further ahead. There is nothing wrong with providing decentralized finance to existing cryptocurrency users, yet that may not necessarily be the target audience. Getting people involved in crypto remains a top priority, yet that is not an easy task.
Rather than trying to oppose the traditional finance sector, it may be best to look for complementary solutions. Bringing together the best of centralized and decentralized finance will help improve overall liquidity and lead to new innovations. There is a lot to like about the current financial sector regarding products and services, and there is no need to keep reinventing the wheel. There needs to be a way to MELD them together!
More importantly, most DeFi services available today are all “mimicking” existing financial products and services. Primarily where lending and borrowing are concerned, valuable lessons are to be learned from the CeFi side of the spectrum. Decentralizing this aspect is beneficial, as it removes the need for custodial solutions and intermediaries while reducing tons of fees paid by the user. Being able to lend and borrow both crypto and fiat in a decentralized way will attract a lot more attention.
Providing safe, fast, and cost-effective solutions will help DeFi gain more traction. The choice for the Cardano blockchain makes sense, as it has a similar set of values and offers tiny transaction fees to users compared to other solutions, such as Ethereum. MELD also introduces an Initial Stakepool Offering, or ISPO, which disrupts the concept of fundraising by removing the risks from the equation.
Why The MELD ISPO Model Matters
Over the years, there have been a few different ways of raising funds in the cryptocurrency space, Some have proven more successful and safer than others, but there is still room for improvements. MELD’s ISPO is a different fundraising solution that prioritizes community orientation. Moreover, it is safe for all parties involved. Anyone can join the ISPO by delegating ADA to the MELD staking pool. All of the rewards generated will help fund MELD as a project, and in return, you get the MELD token.
Those who keep their Cardano assets in the MELD pool will be eligible for a MELD airdrop on launch. The longer you delegate, the more MELD you get. The ISPO has been launched before the private sale to let everyone join in early and have a chance at rewards before the project goes live. It is a different way of generating project attention ahead of the private sale and helps empower future community members through a financial incentive.
The MELD ISPO went live on July 1st. It took under 24 hours to get it filled with 64 million ADA – valued at $90 million – with more money pouring in since. So far, there are multiple pools that, in total, hold roughly 220 million ADA tokens. There is a clear demand for this service provided by the MELD team, as their solution doesn’t involve any risks to initial capital.
Bridging the gap between traditional and decentralized finance is a smart approach. Leveraging the Cardano blockchain for speed and efficiency makes sense given the congestion problems Ethereum and other ecosystems face regularly. Moreover, solutions like these show the Cardano community is more than ready to welcome DeFi solutions on its blockchain. With the recent addition of smart contracts, services like MELD can prove to be rather valuable.
The ISPO solution is crafty and innovative. As users delegate their existing tokens and keep their entire delegation – rather than relinquish control and spending money – there is no risk in losing your principle while earning some MELD tokens ahead of the project’s launch.
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