MELD Whitepaper 1.8

MELD WHITEPAPER
Be Your Own Bank.

MELD is building the DeFi banking stack; unlocking the value of
your crypto assets in fiat while keeping a long position and not
triggering a tax event.
MELD is an open-source, non-custodial liquidity protocol for borrowing fiat (USD
and EUR) against crypto collateral and earning yield on deposits. The MELD token
is used for governance of the protocol, and you can stake it to earn yield.
MELD is the first decentralized protocol that incorporates fiat loan capabilities
into the crypto ecosystem. This enables low-friction transactions between crypto
and fiat positions while maintaining control of digital assets.
Users interact with the MELDapp to easily access their digital assets to lend, borrow
and manage the services offered by MELD. Users have peace of mind because they
keep the keys to their assets at all times.
MELD offers significant capital efficiency gains in lending and borrowing compared
to both centralized blockchain solutions and traditional fintech. Running on a
third-generation blockchain, MELD inherits Cardano’s features including low
transaction costs, high throughput and Cardano10 has more than $50 billion staked
within the blockchain.
Built on top of the Cardano blockchain, MELD capitalizes on transaction efficiency,
which drastically reduces fees by more than 99% as compared to ETH-based
solutions.
Composability or “modular money” gives an openness to the protocol, allowing for
its use with other decentralized finance11 (DeFi) products. This is critical for MELD in
terms of market adoption and its evolution into a major contributor to the crypto
economy. The MELD team is working with several leading DeFi services to connect
with their functionality, providing even greater financial integration.
This whitepaper, and the MELD protocol with associate tokenomics, will continue to
evolve over along with a full-scale launch Q4, 2022. The launch of MELD is subject
to the release of Vasil hard fork. We believe deeply in creative destruction and
moving toward a more straightforward and elegant solution for converting crypto
into cash through an efficient loan system. In this regard, we will be collaborating
with the community to create a robust protocol.
Version 1.8 Jan 30, 2023 PAGE 2 of 51

Table of Contents
Executive Summary 4
Scorecard 5
What We Stand For 6
Background 7
MELD Product Market Fit 9
MELD Business Model 11
Products & Services 14
Our Market 19
Our Clients 21
Competitive Landscape 25
The Protocol 28
Risk Management 37
Customer Acquisition 38
Tokenomics 39
Token Generation Event 48
Limitations 50
Disclaimer 51
References 52

Executive Summary
BUILDING A DECENTRALIZED, ETHICAL AND COST-EFFICIENT
LIQUIDITY PROTOCOL MELD IS COMMUNITY-DRIVEN, HIGHLY
PROFITABLE, AND INTUITIVE TO USE. MELD IS JOINING THE
FASTEST-GROWING DEBT MARKET IN HUMAN HISTORY.
With the stellar rise of the cryptocurrency market and the resulting value amassed,
the crypto investor and other market participants (businesses, institutions, and
miners) are reluctant to convert their crypto assets into fiat currency. This is due to
fiat currencies declining in buying power, and converting crypto to fiat triggers a tax
event (capital gains tax).
MELD supplies crypto-backed loans in fiat and crypto denominations at
market-competitive interest rates. Users collateralize their cryptocurrency in the
MELDapp allowing them to borrow fiat currency. Once KYC is completed this results
in a wire transfer to their bank of choice. When a loan is paid-off, the smart contract
ends, triggering the release of the collateralized cryptocurrency. The entire process
will be managed through the MELDapp.
While many individuals and businesses heavily invest in the crypto space, they still
need capital to operate in the traditional economy. Individual crypto investors can
use crypto-backed loans for life events like buying a house or getting married or as
a line of credit. Crypto-related businesses that have large crypto positions can use
these loans as an efficient method of funding operating and capital expenditures.
Borrowers and lenders alike get MELD tokens as rewards for using the protocol. The
MELD token provides security and benefits to users and is central in the operations
of functionality like liquidity pools, market-making, and protocol governance.
MELD is a decentralized and trustless network built on the Cardano10 blockchain
using smart contracts and governed by the MELD Foundation. This provides a fast,
safe, and transparent set of tools for all participants to lend and borrow in the DeFi11
ecosystem.
We deliver two types of benefits to liquidity providers. We offer a highly stable,
interest-based return for fiat loan liquidity capable of replacing traditional fixed
income sources. For other institutional liquidity providers, we offer high yield income
from MELD Vaults that act as automated market makers (AMM).
The protocol is open-source and supported by the Cardano community in
developing functionality and innovative applications. As a protocol, the MELDapp
runs on iOS and Android, as a Chrome extension, or as an application programming
interface (API) by other developers and services.

Scorecard
START DATE TYPE
April 2021 Decentralized Lending Protocol
TEAM LOCATION
45 Singapore
TOKEN TICKER ENGINEERING
MELD MELD LABS PTE. LTD., SINGAPORE
BLOCKCHAIN GOVERNANCE
10
Cardano MELD FOUNDATION
TOKEN TYPE TOTAL TOKEN SUPPLY
Deflationary 4,000,000,000
PRODUCTS KEY BENEFITS
Lending Non-custodial
Borrowing Trustless
Wrapped Assets Composable
Staking Censorship resistant
Liquidity Pools Non-US based entity
WHAT MAKES MELD DIFFERENT?
1. Unlocking the value in your cryptocurrency without liquidating
your position.
2. High yield for fiat liquidity providers.
3. No tax event is triggered in any part of the protocol.
4. Easy and fast fiat lending and borrowing.
5. Transparent process, contracts, terms, and events.
6. Wrapped asset creation and management tools provided to the
whole DeFi ecosystem.

What We Stand For
MELD Mission
Build DeFi products that level the playing field and

create opportunities for the bottom 97% of the
world's population.
We think it is essential for everyone to gain control of their financial lives and to have
equal access to the financial instruments used by professionals, not just centralized
institutions, governments, or the one percent. We want to provide financial freedom
and control to the masses, including the unbanked.
We have a long-term goal to enable the $15 trillion currently locked out of the global
economy, including two billion individuals worldwide that are either underbanked or
have no access to banking services whatsoever. These are the people that are
paying the highest fees, getting the worst customer service, and have the most
difficulty in day-to-day living.
MELD Vision
Self-sovereign Financial Tools

Our vision is to create an ecosystem that empowers individuals to regain financial
control by providing them with the tools and services they need to manage their
money on their terms.
Whether that is creating a collateralized debt position (CDP) with cryptocurrency,
earning an interest return for lending fiat to borrowers, or taking part in reward
incentive programs, we strive to provide our users with the services they need to
manage their own financial lives.
MELD Values
● Safety
● Community
● Empowerment
MELD is a community that is working towards a better future. We are building
products that everyone in the community uses. In addition, our products can
integrate with other DeFi11 protocols to create new innovative solutions. It is a
movement that everyone can join. MELD is a protocol that will enable users to have
a say about their financial livelihoods.
Background
This section describes the current economic and technological trends and
challenges that go with any disruption efforts in the financial industry. Our white
paper aims to explain in detail a procedure for unlocking the value of crypto assets

within the current economic paradigm, while still benefiting from crypto price
appreciation. Building on the potential of the blockchain, with a focus on increasing
capital efficiency to supply innovative products for our users, MELD is the world’s
first decentralized protocol for crypto-backed fiat loans.
During the past few years, advancements in blockchain technology are disrupting
and fundamentally changing the way certain industries operate. One of the
immediate candidates for disruption is the financial services industry, which has
been unhealthily rigid.
Financial technology companies (fintech) look to shake up the financial sector,
offering cheaper, quicker, and more transparent services to everyday consumers
and businesses. The fintech goal of increasing capital efficiency has met resistance
from financial actors like banks and large financial institutions. However, DeFi
realizes that the lofty goal of fintech, with blockchain technology and DeFi11, can
provide an alternative that is more transparent, convenient, cost-effective, and
yields orders of magnitude increases in capital efficiency. Regulations, technical
debt, and conservative organizations have limited fintech’s ability to meet the goals
of the digital economy.
Macro-Economic Trends Leading to Crypto Lending & Borrowing Growth:
● Forecasts show that the cryptocurrency market will surpass the market cap
of gold during the next three years.
● Crypto is already $2t in market capitalization
● The majority of investors do not come from a traditional “sophisticated
investor” background
● The predominant characteristic of crypto asset investors is to have long
positions
● 53% of investors have an annual income of less than $80k USD 23
● 33% of crypto investors have more than 50% of their portfolio in crypto
assets23
In today’s market, users typically sell their cryptocurrency for fiat to pay everyday
living expenses. Doing this eliminates the growth potential of their crypto positions
and triggers a capital gains tax event. Having the ability to borrow fiat against
crypto positions is the first step in building an effective capital-efficient alternative.
Millennials will become a more significant economic force in the economy. The
under 18 generation as well as millennials see cryptocurrency as a practical
alternative to fiat. This popularity helps to fuel the widespread adoption of DeFi. We
observe that DeFi is supplanting traditional financial services, thus opening up a
new generation of economic opportunities.
The fact that the overall market capitalization of cryptocurrencies has grown from
$15 billion in January 2017 to over $2 trillion in April 20217 makes a convincing case
for the intrinsic value of what is now a recognized asset class. While gaining
traction, the integration of cryptocurrencies into the global economy is yet to come.
One of the main reasons for the limited adoption of cryptocurrencies is the lack of
infrastructure available to link fiat with crypto. Extracting the value of
cryptocurrencies still requires conversion to fiat currencies using centralized
exchanges or p2p transactions. The conversion process is complex,
time-consuming, and includes various exchange fees, withdrawal fees, and capital
gain taxes.

In traditional financial systems, lending and borrowing are slow, complex, and
bureaucratic processes. The process severely lacks capital efficiency. Commercial
lending is inaccessible to ordinary people, and consumer lending is predatory often
leading to higher levels of indebtedness. DeFi unlocks innovative tools to the
masses and makes the entire lending and borrowing process automated, secure,
and composable.
To build a new generation of financial services, MELD focuses on the latest
generation of Blockchain; Cardano10. This generation of technology builds on the
successes and failures of both Bitcoin and Ethereum to create a new
high-performance solution. Cardano, under the leadership of Charles Hoskinson,
the former co-founder of Ethereum, has a design that emphasizes low transaction
fees along with high throughput. As of April 15, 2021, Cardano is the eigth largest
Cryptocurrency by market cap, and will soon be launching its support for smart
contracts. With these attributes, Cardano is in a position to become a major utility
blockchain to power the future of DeFi.

MELD Product Market Fit
PROBLEM SOLUTION
Access to cash from crypto Crypto collateralized loans
If an investor wants to gain access to fiat Using a crypto-collateralized loan makes
from their crypto position, they must exit sense because the investor can still realize
part of their crypto position, pay a capital the gains in the crypto asset and has no
gains tax, and will no longer have exposure exposure to capital gains. Additionally, the
to the price appreciation of their crypto. interest on the loans is tax-deductible in
most countries.
Expensive & Tax Inefficient Cheap & Tax Efficient
Crypto rich but cash poor Crypto collateralized loans

The rise of cryptocurrency has led to a great Due to the nature of cryptocurrency being
deal of wealth accumulation with limited programmable and highly liquid, MELD can
liquidity and access to fiat currencies. collateralize these assets in a smart
Holders of these assets expect large gains contract and unlock up to 50% of their
as the market grows and matures. As a current value as a fiat loan.
result, people want to maintain their long
positions.
Capital Inefficient Capital Efficient
Lack of trust and transparency Blockchain smart contracts

The current solutions for crypto-fiat loans Utilizing smart contracts, and deploying
are all centralized. This means the user must them to a blockchain, makes the code open
give up their private keys and hand over source. This allows users to review the code
their assets to a centralized company to use before they decide to interact with the
their services. On top of this, centralized protocol. Users can see exactly where their
institutions can make protocol changes funds are going, what positions they are
independently, and users have no recourse. interacting with, and this all is possible
Users are also unable to see the means for without the user having to give away their
the rehypothecation of assets deposited on private keys. Any changes to the protocol
these platforms. must be in the form of a proposal followed
by a vote by the users of MELD. This
ensures the entire community is in favor of
the proposal.
Centralized Decentralized
Inefficient liquidation of assets Instant access to cash

Various crypto exchanges offer the ability to Users of MELD can gain access to cash
liquidate digital assets. The problem comes instantly from their cryptocurrencies by
when the user wishes to realize the value in either using a line of credit or a
fiat. The process is quite arduous and filled crypto-backed fiat loan. Users no longer
with fees at different checkpoints along the must sell their crypto and encumber with a
way. plethora of fees to gain access to a fiat
currency.
Inefficient & Slow Fast & Methodical

Custodial control of your assets Non-custodial protocol
The current solutions in the market that Users who employ the MELD protocol do
MELD is targeting all require users to fully not have to hand over the ownership of
deposit cryptocurrencies, along with the their cryptocurrencies. Users keep the
private keys. The user has to give up private keys and can decide to act in a way
ownership of the cryptocurrency to gain they see fit.
access to these platforms.
User Must Hand Over Private Key(s) User Keeps Private Key(s)
Credit checks No credit checks

Credit checks can be burdensome and MELD doesn’t perform any credit checks,
resource-intensive. In addition, many people which could damage the credit of its users.
are unable to interact with certain Any loans, or credits taken from the
processes due to the inability to pass a protocol, are through smart contracts with
credit check. the value of cryptocurrency as security.
Burdensome & Invasive Secured by Smart Contracts

MELD Business Model
MELD is a decentralized and trustless lending protocol using the Cardano10
blockchain, including smart contracts, and governed by the MELD token. It provides
a fast, safe, and transparent set of tools for anyone to lend and borrow crypto and
fiat currencies.
MELD lends fiat currency, via it’s EMI license, provided by lenders to borrowers that
collateralize cryptocurrency in a MELD smart contract. The lender receives a
high-interest rate from secured investments, whilst the borrower can maintain their
crypto positions and see them grow, which has an average annual rate of 32% (BTC
IS 196%) CAGR (compound annual growth rate). MELD stakes the collateral in
community-managed Vaults (LPs) generating yield, with 40% going to MELD stakers
and 60% to various other functions such as products, treasury, development, and
operations.
1. Fiat Liquidity Lending

Fiat liquidity providers lend fiat to the MELD protocol, through the MELDapp, to earn
high-interest yields. The yields for lending fiat on MELD source from various places,
including interest paid from the borrower, trading fees APY from the Vaults of
MELDed assets, and protocol rewards.
2. Crypto Collateral
For a borrower to gain access to fiat loans, the borrower must deposit
cryptocurrency (ADA, BTC, ETH, or BNB) to the MELD loan smart contract. Once
making the deposit and locking into the smart contract, the borrower will be able to
access up to 50% of the value held within the cryptocurrency through a
crypto-backed loan or a line of credit.

3. Fiat Borrowing
MELD will offer two fiat borrowing services; crypto-backed loans, and a line of credit.
From a collateral perspective, both services function similarly. A borrower will need
to deposit 2x the desired fiat in cryptocurrency to utilize either service. Borrowers
receive fiat currency via wire transfer directly into their account for crypto-backed
loans or gain access to a line of credit utilized by the MELD debit card, after
depositing their crypto.
4. MELD Vaults (Liquidity Pools)

The liquidity pools run by the MELD protocol are single-sided MELD/token pools.
When a user makes a crypto deposit, the deposit is locked to a smart contract and
placed into the respective MELD/token pool. The benefit of this is that the deposited
crypto can be exposed to trading fees APY from external DEX aggregators/routers.
The MELD protocol has integrated impermanent loss protection for crypto
depositors.
5. The MELD Token

The MELD token provides a few utility functions for the holder. First, the issuance of
MELD to pay for some transactions on the protocol. Second, a user can stake MELD
and earn APY on the protocol as reward. The MELD staking pool acts as an
insurance solution for protocol. The staking pool protects against problems that
might arise in the protocol and against impermanent loss in the MELD Vaults. The
APY for the staking comes from 40% of all protocol fees, such as MELDed assets
and trading fees.
6. Loan Repayment
MELD offers crypto-backed loans and a line of credit to crypto depositors.
Borrowers of fiat through these services pay back the principal and interest monthly
until the loan is paid off.
7. Crypto Collateral Returned

The crypto collateral is unlocked and withdrawn from the respective liquidity pool to
the user’s wallet, and the smart contract is completed upon loan repayment.
8. Fiat Liquidity Returned

At any time, fiat liquidity providers can withdraw their money. If a crypto-backed fiat
loan position suffers a liquidation event, then a sale takes place of the underlying
crypto asset and the proceeds are transferred to fiat to ensure the fiat lender does
not suffer any losses.
The MELD Foundation

The purpose of the MELD foundation will be to develop, manage and grow the MELD
protocol as a decentralized non-custodial lending and borrowing ecosystem. This
includes managing 3rd parties working on the technology development, community
management, and commercial contracts and partnerships.
The purpose of the MELD foundation is stuard the MELD protocol until it’s
completely managed and controlled by a DAO. The foundation will be the interim
governing body of the protocol until it is voted to become a fully DAO based

ecosystem. We expect the process from Foundation to full DAO control will be
approximately two years. Once the DAO takes over the protocol, the foundation will
be operated by the DAO and it’s role will be limited to commercial contracts.
The MELD Foundation will hold the MELD treasury, the majority of unissued MELD
tokens (1 billion), and all of the ADA block rewards generated by the ISPO. The EMI
and exchange company located in Lithuania - part of The Foundation - will engage
in several commercial activities including exchange listings, bank and financial
institution contracts for activities such as liquidity provision, banking services,
KYC/AML checks fiat/crypt on-ramping and off-ramping and protocol partnerships.
The foundation will have a board of advisors (or similar) that will meet quarterly and
facilitate the development of the protocol and oversee the management of the
foundation.
● Foundations need to be established and governed by a supervisory body
● Foundations are to perpetually prove reserves.
● Foundations complete audits on a specified schedule for all of the accounts.
The MELD Foundation will manage the voting process in the MELDapp and provide
oversight and transparency into the MIP submission process.
The MELD DAO

The ultimate goal is to have the MELD protocol operated by a DAO or setup for DAOs
that will be fully controlled by MELD governance token holders. Token holders will be
able to interact with the DAO via the MELDapp. More details about the governance
of the DAO in the governance section of this whitepaper.

Products & Services
MELD’s offering covers lending and borrowing with fiat, cryptocurrency and
innovation for greater capital efficiency. Our goals are to create products that meet
an exciting, fast-paced market and demanding DeFi customers.
Initially, MELD will provide crypto assets from other blockchain networks within the
Cardano network to be able to capture the liquidity and use it in lending and
borrowing. This includes Bitcoin, Ethereum, and Binance Coin.
In the future, we will be expanding into these ecosystems and provide more ERC20
and BEP20 tokens as well. MELD is looking into partnerships with some established
DeFi11 protocols that we think can provide our users with new products and services
never before seen by the industry.
MELD will be offering six products rolled out over the next 18 months:
Crypto-Backed Loan
Users have different needs when it comes to finances. The initial service MELD will
offer will be instant crypto-backed loans. First, a user will deposit their
cryptocurrency to MELD as collateral. The protocol will then use the deposited
cryptocurrency to create a collateralized debt position (CDP). A smart contract
records the terms of the loan and registers it on the blockchain. Upon KYC/AML
confirmation, the protocol will execute a wire transfer directly to a bank account.
Users will be able to manage their CDP directly from the MELDapp.
MELD can provide a much more capital-efficient CDP than any competitor on the
market today due to the autonomous and transparent nature of the protocol. All
contracts and terms are open and available for evaluation and auditing. All parts of
the process have automation, including the KYC/AML. MELD can process all states
of a loan in seconds and execute the smart contract instantly.
Users pay back their loans in fiat which is registered in the MELDapp on the
blockchain. This level of capital efficiency means MELD can offer more competitive
rates and react to market conditions within seconds.
Loans are issued at a loan-to-value (LTV) ratio of 50%. If the collateral value falls to
an LTV 65% or stays above 50% for more than three days, a margin call happens.
The customer must provide added collateral to bring the loan back to an LTV of 50%.
The same happens if the LTV reaches 75%. If the LTV reaches 85%, a liquidation
event is triggered where the collateral is converted to USD/EUR stable coins
equivalent to the fiat loan plus a 5% fee. The balance of the collateral is then
transferred back to the customer, and the smart contract terminates. The
customers keep the fiat they borrowed.
This protocol aims to innovate in the debt markets by creating extremely
capital-efficient products and services powered by blockchain technology, and by
promoting availability, transparency, and empowerment. This will allow the protocol
to give the most attractive borrowing rates to customers worldwide.

Lending Journey
Genius Loan
Following the idea of extreme innovation, MELD will be offering a self-repaying loan.
The customer collateralizes their cryptocurrency and takes out a loan with a slightly
higher interest rate. The customer only needs to service the interest on the loan.

They can but do not have to pay on the principal. In the MELD Genius Loan, part of
the yield generated by the collateral goes toward paying down the principal on the
loan. Based on our models it will take between 3 and 6 years to repay a $100,000
USD loan depending on the market conditions.
This product is able to offer users self-repaying loans by capturing some of the
trading fees (APY), generated by DEX20 aggregators utilizing our LPs for swaps.
These fees apply to repayment of the loan over time. This type of structure is
unique to the financial industry and it is only possible through the decentralized
nature of DeFi.
Crypto-Backed Line of Credit

The Crypto-Backed Credit Line (CBCL) provides a valuable and flexible tool for
managing fiat cash requirements while exposure exists only to interest on the
amount of fiat used. The CBCL works in conjunction with the MELD debit card
where users can spend with their card both at the point-of-sale and online. The
CBCL works like a fiat loan where smart contracts collateralize cryptocurrency and
50% of the collateral value serves as a line of credit. Margin calls and liquidation
events work the same in the line of credit product as they do in the MELD Loan.
MELD Debit Card

The goal of the MELD debit card is to give customers financial control over their lives
by unlocking the value in their cryptocurrencies and spending it in fiat anywhere
that accepts VISA/MasterCard. No more worrying about exchanges, account
verification, or obtaining a bank account. Our goal is to provide our users with a
simple and hassle-free solution to the current problems they face when dealing
with digital currency. For the first time ever, MELD protocol users will be able to use
their cryptocurrencies to purchase goods or services without having to cash out to
fiat currency.
MELDapp
The MELDapp (https://app.meld.com/) sits at the core of the MELD protocol and is
an all-inclusive consumer/retail-friendly experience. The app makes the process of
lending, borrowing, and depositing crypto easy to understand and simple to execute
and manage.

The Most Usable and Beautiful Crypto Wallet in the World
Customers using the app can transfer or link crypto assets to different blockchains
and wallets, such as Nami and MetaMask, with a click of a button. Integrating a
seamless user experience allows users to create and deploy smart contracts from a
straightforward and intuitive user interface.
Integration with Cardano and Polygon allows us to greatly reduce fees for
transactions and any other protocol interactions performed within the app.
The MELDapp is a web3 based application accessible via a browser on Chrome,
Brave, and other supporting search engines

MELDed Assets
MELD offers DeFi infrastructure for wrapping assets from other blockchain networks
(ETH, Polygon) to the Cardano blockchain that MELD uses via ADAmatic. ADAmatic
is a protocol that connects the Cardano and Polygon blockchains together, allowing
assets to transfer seamlessly to and from both blockchains. The initial scope of the
assets will include ADA, MELD, and ETH, BTC, and BNB and followed at a later date
with other ERC20 and BEP20 tokens.
MELD strives to be an all-inclusive and collaborative protocol, working across the
DeFi ecosystem. While we are committed to the future of Cardano, we have
enthusiastic respect for Bitcoin and Ethereum and with their vibrant and innovative
ecosystems. MELD wants to participate in these communities as well and unlock
their enormous value.
All MELDed assets will follow a naming convention of lowercase ‘m’ and the official
ticker of the asset. As an example, the Ethereum ticker is ETH, and a MELDed ETH,
when brought onto the Cardano network, will have the name mETH. Each MELDed
asset will have the same value as it does on their native blockchain, but they will
have all the features and functionality of Cardano.
MELD will manage a DAO for the minting and burning of MELDed assets. The
MELDing process for ETH and BTC will use Polygon's layer 2 Ethereum solution and
lock ETH and renBTC on the Ethereum network to create mETH and mBTC.
Creation of MELDed assets occurs by the MELD protocol sending ETH and renBTC
to the MELD DAO. Likewise, purchases can happen from the MELD DAO LP with
ADA.
MELDed assets are fully compatible with the Cardano network, which means that
trading and storage in Cardano wallets is possible along with use as part of smart
contracts. Redemption can happen at any time through MELD DAO.
mBTC mETH mBNB mUSD mEUR

Our Market
The target customer for the MELD protocol includes any cryptocurrency user
regardless of size and sophistication. The cryptocurrency market is growing fast,
adoption is happening across all demographics and some of the fastest in among
the youngest (under 18). The growth is phenomenal, but the innovation and
sophistication are equally stellar. The tools available to this market have historically
only been for the very few and privileged, but are now available for ordinary people,
globally, 24 hours a day, seven days a week.
➔ 101 million crypto users worldwide12

➔ 56% of crypto investors never use their tokens to pay for
goods or services2
➔ Almost 20% of cryptocurrency users younger than 18 2
➔ 30% of crypto investors are between 25 and 342
➔ More than half of crypto investors have higher education
(BS, MS, Ph.D.)2
➔ Millennials trust bitcoin2
➔ Almost 20% of crypto investors hold $100,000 worth of
BTC or more2
➔ 2021 survey of over 60,000 users worldwide shows 97%
confidence in cryptocurrencies3
➔ Users see themselves as investors2
➔ 90% of crypto users are men2
➔ Most crypto investors are HODLers2

The total cryptocurrency market capitalization peaked at $2.6 trillion7 on May 7,
2021, and is expected to more than quadruple by 20258 as a result of blockchain
integration into various industries.
Bitcoin Traders by Country
Bitcoin Ownership by % of Population

Bitcoin Traded by USD Value
The graph above shows the amount of Bitcoin traders by USD value allocated to
specific countries. As you can see, 39.2% of trades occur within the United States,
and 60.8% occur outside.
We are initially targeting our products towards the 60.8% of international,
non-US-based customers.
Our Clients
Representing a broad swath of society, our clients are anyone actively exposed to
cryptocurrency ranging from a Nigerian shopkeeper that has .25 BTC to a
successful crypto business with more than $100m in assets to a traditional
institution looking to supplement their fixed income portfolio. Everyone needs fiat to
live, work and play, and crypto holders need it even more because they typically
invest a great deal in crypto assets at the expense of fiat liquidity.
Primary
Our chief customer focus at MELD is to provide innovative borrowing solutions to
customers looking to access the value locked within their cryptocurrencies.
Borrowers include any holder of cryptocurrency greater than $50USD.
There are over 101 million active cryptocurrency traders12 around the world. Not only
is the number growing, but the demographic is unique in the use of financial
products. About 20% of the investors are under 18 years old, and the
fastest-growing segment is women. Just in BTC, more than 25 million addresses
are economically active wallets held by private individuals. Millennials and younger
are more inclined to trust cryptocurrency than fiat currency. We see a general shift
toward digital and more specific decentralized cryptocurrency as faith in classical
sovereign fiat fades.

Cryptocurrency Investors
Cryptocurrencies and their use in the financial markets throughout DeFi have seen
market adoption expand at an ever-increasing pace since the summer of 2020. The
appreciation of cryptocurrency assets over the past few years has resulted in
investors gaining a significant amount of value, and they see this rise continuing
over the next 5 years. As a result, cryptocurrency investors are unwilling to spend or
sell their cryptocurrency positions.
This attitude in the market creates a need for investors to unlock some of the value
in their investments without either triggering a tax event or liquidating their
positions. Cryptocurrency-based loans and credit lines offer an efficient and
cost-effective way to realize their gains in fiat to use in everyday life events like
buying a house or getting married.
With MELD products, investors worldwide can enjoy the benefits of their investment
now with an open and safe protocol in the DeFi space.
Miners
Cryptocurrency miners are a key actor in the cryptocurrency ecosystem. Miners
validate transactions on various blockchains such as Bitcoin and Etherium to earn
rewards for their service. As a result, a great deal of wealth is accumulating among
miners. Like investors, miners are unwilling to spend their cryptocurrency due to
their bullish attitude toward the market.
While miners also have a need for disposable fiat, currently they also have a need to
cover operations and expansion of their mining operations through CAPEX and
OPEX costs. With a MELD loan or line of credit, miners are free to operate and
expand as needed.
Crypto Businesses
Crypto businesses need fiat capital to be able to operate and handle day-to-day
expenses. These businesses typically have large balances in crypto, and MELD
provides a bridge to realize their assets in fiat for OPEX and CAPEX expenses or
investment.
After the launch of MELD and the implementation of crypto-backed fiat loans,
crypto businesses will be able to take their crypto balances held within their
reserves, deposit them on the MELDapp, and borrow against them. This allows the
project owner exposure to the price appreciation for crypto assets on deposit while
still gaining access to fiat to finance their needs.
Crypto Exchanges
Centralized cryptocurrency exchanges (CEXs) are a large part of the crypto
ecosystem. As of 2020, CEXs are the most widespread mode of operation for
cryptocurrency exchanges. The speed and cost-efficiency of processing
transactions by a single point of authority make them convenient for users to
perform token swaps.
By design, MELD’s instant crypto loan provides partnering CEXs with added liquidity.
CEXs can utilize the additional liquidity to support their margin lending activities,

enabling them to offer their users higher capital efficiencies while simultaneously
providing MELD fiat lenders a more stable interest return.
Secondary
MELD creates fiat-lending liquidity, providing investment opportunities with safe
and attractive returns for individuals, institutions, as well as B2B customers. The fiat
provided by lenders fulfills the borrower’s loan position. This means fulfilling the
utilization of a line of credit purchased by a user or fulfilling a wire transfer executed
by a user creating a crypto-backed loan. The LPs will have a variety of terms to fulfill
for each borrower. The most important term is the interest rate for the duration of
the loan. The interest rate will be dependent on the overall availability of liquidity
and the demand to borrow. We will be expanding our client base in the next few
years towards centralized institutions that have a lot of capital and are looking for a
safe way to earn a solid interest return on their fiat. These include, but are not
limited to:
Fintech
Financial technology (Fintech) aims to compete with traditional financial methods in
the delivery of financial services. Fintech has created an emerging industry that
uses technology to improve activities in finance.
Companies such as Square, Paypal, and Paysafe have innovative Fintech solutions
that disrupt the traditional financial landscape. These companies are now
integrating cryptocurrency solutions into their business plans and some have even
started buying Bitcoin and other cryptocurrencies for their balance sheets. 17
MELD can provide Fintech firms with the ability to operate in the crypto space and
leverage their assets to pay for operations and capital expenses. We provide these
types of services so that traditional companies can more actively focus on their
core business and take advantage of the capital efficiency MELD offers.
Pension Funds
Pension funds buy assets with contributions for the exclusive purpose of financing
pension plan benefits. The pension fund is a pool of assets forming an independent
legal entity.14
Preliminary data for 2019 show that pension funds held USD 32.3 trillion in the
OECD area and USD 0.7 trillion in 29 other reporting jurisdictions.15 With the bond
rates trending to ever lower levels16, the ability to earn a safe and attractive interest
return is becoming harder to achieve.
Pension funds can become liquidity providers with their managed assets safely and
securely to earn a greater yield than any bond on the market today.
Institutional Investors
An institutional investor is an entity that pools money from clients, or partners, to
purchase investment assets or originate loans. Institutional investors include banks,
credit unions, insurance companies, REITs, investment advisors, endowments, and
mutual funds. These include operating companies that invest excess capital in
various types of assets. According to the OECD Institutional Investors Statistics

2020, $22 trillion USD is situated in institutional investor accounts within the United
States alone.18
MELD can offer these investors further capital efficiency and an attractive interest
return from fiat liquidity, providing a solution for excess capital. Institutional
investors can utilize MELD’s protocol to generate a yield from unproductive liquidity
held on balance sheets.
Hedge Funds
Estimates show that the total AuM (assets under management) of crypto hedge
funds increased in 2019 to over $2 billion USD from $1 billion USD the previous
year.13 Hedge funds that have invested capital under management in crypto assets
are also direct beneficiaries of MELD’s Instant Crypto-backed Loans as well as being
candidates for becoming a liquidity provider of fiat for borrowers.
Depending on market conditions and strategies, hedge funds may attain a large fiat
position for assorted reasons and hold it for an extended period. In these cases,
hedge fund managers can use MELD’s fiat liquidity pool to earn an interest return on
their unproductive fiat.
Hedge funds can deposit their crypto assets to the MELD protocol through the
MELDapp or API where they are able to leverage the locked value in crypto assets
giving them greater flexibility to structure their portfolios.
Long Term
Banking the unbanked

One of the reasons we are building the MELD protocol is to expand our market to a
population that currently has no access to crypto-backed loans. This population is
the "unbanked" and they comprise approximately 2 billion people. The "unbanked" is
a term used to describe those who do not have access to a bank account. In
addition, this population may not have access to other financial services such as
credit cards or loans. For example, in the United States, about 22% of US adults9 are
"unbanked" and in developing countries, this number can be as high as 65%.

Competitive Landscape
This competitive analysis discusses how MELD’s Instant Crypto-backed Loan
services are superior to various competitor products and services.
MELD vs Other Lending Solutions

MELD Centralized Peer-to-peer Traditional
crypto-fiat crypto-fiat Lending
lending lending
Crypto
assets
accepted
Keep
ownership of
your assets
(non-custodi
al)
Approval Instant Instant Variable Very Slow

time
Fees No Yes (Application Yes (Membership Yes (Application

Fee) fees, loan fees, Fee, Administration
etc.) Fee, Commitment
Fee, Legal Fee etc.
Personal Worldwide Limited Variable Limited

loans
Business Worldwide Worldwide Variable Worldwide

loans
No credit
N/A
check
The decentralized nature of MELD puts forth a variety of benefits. This is a large
factor that sets us apart from our leading competitors, BlockFi, Nexo, and Celsius.
These companies are bound to the US regulations, which limit their customer base.
In contrast, the MELD protocol has access to the DeFi ecosystem of financial
services and customers worldwide.
Furthermore, MELD products are accessible to users with little to no credit (no credit
checks) and do not have geographic restrictions. The crypto loan executes instantly
as there is no approval procedure. As soon as the crypto assets transfer to the
on-chain smart contract, and confirmation of the transaction takes place on the
blockchain, the client can start spending the fiat currency of their choice. Because
of the decentralized nature of MELD, the interest rates are highly competitive, and
there are no additional or hidden fees.

MELD Fiat Liquidity Providers vs Competitors
MELD BlockFi Nexo Celsius
Speed of funding Real-time 24h 24h 24h
Application process Instant <2 days <3 minutes <30 seconds
KYC/AML Swiss USA USA USA
Time to fiat funds Instant* 24h 1h 24h
Lending product Loan, Genius Loan, Loan Loan, debit Loan, debit card
credit line, debit card card
Repayment options USD, USDC, USDT, USD USD, EUR, ETH, USD
mUSD, EUR, ADA, BTC, NEXO
ETH, BTC, MELD
Collateral release Instant 1 to 14 days 24h 24h
Fees None 2-3% None (limited) Membership,

0.5-2%
Withdrawals Free & instant* 1 fee per month 24 Hours 24 Hours

24 hours and 1-5 based on Monthly limit
not on loyalty tier
weekends.
Token type Utility NA Utility Utility
Token benefits Bonuses, Dividends, NA Bonuses, Bonuses,

Staking rewards Dividends Dividends
Product coverage Worldwide, personal Worldwide Worldwide US Only

& business business business
Non-custodial
(keep ownership of
keys)
Legal jurisdiction Switzerland USA Bulgaria USA
* Varies based on the wire transfer times.
With the support of renowned business angels, crypto assets, and the crypto
community, MELD is seeking to become the leading fiat currency lending protocol in
the crypto-sphere. Competitors like Nexo use Ethereum as their layer-1 and high
transaction fees affect their efficiency.. BlockFi utilizes tiered earnings on interest
rates with support from centralized Gemini exchange and deeper traditional Wall
Street backgrounds. Celsius provides a layer-1 chain with untested security
standards and tier-based rewards. MELD focuses on the crucial features in security,
decentralization, fee reduction, and regulatory independence. Our reduced fees are
not focusing more on the rewards to the highest token holders, instead, we
maintain incentives equally through our protocol. Decentralization is a huge aspect
of connecting DeFi to traditional fiat markets and ensuring a protocol that maintains
our Mission and Values.
Additionally, competitors complicate wider platform adoption by supporting many
crypto lending pairs. In comparison, the MELD protocol offers clarity on deeper
liquidity to mainstream adoption for institutions and individuals with our unique
AMM and oracles. Consequently, allowing our platform to offer more services for
individuals to find their perfect loan and institutions taking advantage of the

modular money effect of decentralized finance compared to competitors. MELD also
ensures the best opportunities, and flexibility of parallel financial jurisdictions, in
comparison to just the USD dollar.
MELD Fiat Liquidity Providers vs Competitors

MELD BlockFi Nexo Celsius
Interest-bearing Worldwide USA Only Worldwide except USA Only

instruments for USA, Estonia &
Bulgaria
Liquidity USD, EUR USD USD USD

denomination
Time to withdrawal Instant 24 hours <3 days <1 day
Fiat liquidity providers have the most flexibility under our protocol relative to the
competition. Fast fiat access ensures that MELD is like transferring money between
personal bank accounts. The DeFi industry focuses on competing with the US
dollar, however it excludes key markets and institutions. In contrast, MELD provides
those key markets with early lending adoption from Euro liquidity pools. In
comparison, MELD ensures that fiat liquidity is all available for withdrawal when
needed the most. Additionally, our fiat oracle produces the proper regulatory
documents for both Swift, and SEPA payment standards resulting in overarching
availability for traditional institutions across Europe and Asia to utilize MELD.

The Protocol
MELD is a decentralized protocol that is trustless, and a part of the DeFi11
ecosystem. This financial composability in DeFi, also known as “modular money,”
allows for connecting various parts of pre-existing protocols into new financial
services.
Modular money means that our various products and services are composable into
other more sophisticated solutions well beyond the mandate of MELD. Being a part
of the innovation and transformation of the financial industry is exciting and
satisfying for us.
The MELD engineering team continues to contribute to many open-source Cardano
technologies like Plutus, the smart contract component of the Cardano blockchain
itself. We’re continuously pushing this front by sponsoring talent to work on
Cardano, Plutus, Haskell, Nix, Agda, and the whole ecosystem in general. MELD will
not just be a top lending protocol; we will also be a leading researcher & developer
of the world.
Our Approach
Research
Research first. We take our responsibility seriously to design a protocol that can
manage billions of dollars worth of value and millions of users. The platform needs
to stand the test of time, to scale and serve the people for the many years to come.
We are going to produce state-of-the-art outputs.
Correctness
It is challenging enough to prove the correctness of a model or design on paper. We
also have to make sure our implementation matches the laid-out design and works
as intended. This is also one reason why we chose Cardano, as its tech stack utilizes
purely functional technologies for correctness.
We program in purely functional programming languages like Haskell and Plutus
with limited side effects for provability, use theorem provers like Agda for formal
verification, and use Nix for pure and reproducible builds.
On top of aggressively reviewing, testing, proving, and attacking the software
ourselves, we’re going to open-source the code base for the community to inspect,
as well as work with top firms in the scene for third-party audits.
Usability
We MELD abstract theories with practical products to deliver the best user
experience. Beautiful formulas on paper or shiny apps with badly designed tech are
not good enough for us.
To achieve this, we first focus on protocol performance; always aiming for cost,
time, and space-efficient solutions. Building on Cardano helps as it’s one of the

leaders in this criteria. We offer cheap and fast transactions with no outstanding
scalability issues.
Combined with the most accessible, usable, and beautiful wallet that is our
MELDapp, users will have a seamless experience that is yet to be seen in the DeFi
world today. It is highly critical for us to expose these novel technologies to every
single human being out there.
Security
This is the number one factor for MELD. With the highest responsibility for the users
and values on the protocol, we have to go the extra mile given how the whole
ecosystem is constantly under attack. We have a budget for security research and
operations to continuously improve our performance on this front.
First, we partner with top researchers to follow and study new attack scenarios, find
better tools and security operations, and adapt our products when needed. We do
not just protect ourselves by designing the most secure protocol and economic
models; we are also providing educational guidelines for everyone (other protocols
included), to better secure themselves and avoid social engineering.
Second, we constantly attack our own work and people on paper, private networks,
public networks, and on the Cardano blockchain. This is an effective and required
way to find vulnerabilities to patch. We accomplish this through our own security
engineers, third-party auditors, and AI bots. For example, when too many
parameters are involved for human beings to process, we can train reinforcement
learning agents to optimize a vulnerability metric of our economic model, to then
give back protocol parameters and market conditions that lead to it, for us to find
preventive solutions.
Finally, it is worth mentioning that this is a collaborative effort involving the whole
ecosystem. As seen in liquidity and flash loan attacks, one lost piece of the puzzle
could bring risks to all the other pieces. We need tight partners that audit each other
and deliver more security materials and standards to the Cardano and DeFi
ecosystem.
The MELD Protocol

MELD believes in the power of the protocols, not platforms. The MELD protocol is a
set of logic that governs the actions and methods available to the protocol that
serves different agents. This includes how lenders can deposit fiat to earn interest
and yield, the calculation of yield or how borrowers can collateralize crypto assets,
and the terms that govern that smart contract, among many others. The section
below outlines the architecture and characteristics of the protocol.
These protocol rules are in the form of decentralized and trustless on-chain smart
contracts that act the same for everyone. No individual will be powerful enough to
change the protocol parameters and how it behaves. The rules are always
transparent and require a democratic voting process to change.
A critical component of the protocol is the LPs or MELD Vaults, which allow different
actors to provide crypto liquidity in return for yield farming and trading fees. This
reward stream is critical to the protocol, letting borrowers earn a yield on their
collateral, for example.

Core Smart Contracts
Lending Contract
Through the MELD App, a lender can deposit fiat into the MELD fiat liquidity pool via
a wire transfer. Upon confirmation, the protocol will update its on-chain script to
track the investment. Early lenders will receive a limited reward of treasury MELD.
Through the lending contract, the lender can get back the equivalent amount of fiat
investment. The on-chain smart contract will keep track of all investments. A fee
might arise if the lender gets back fiat too early.
Borrowing Contract
Through the borrowing contract, a user can deposit Cardano native tokens (MELDed
assets included) to create an on-chain collateralized debt positions (CDP). Upon
confirmation of this contract the smart contract starts. The protocol then contacts
the bank account and initiates a fiat wire transfer from the fiat liquidity pool to the
borrower’s bank account. The contract will also generate documentation for the
borrower's jurisdiction. MELD rewards will then transfer to the borrower's MELDapp
wallet for taking part in the protocol.
The MELD protocol can interact with the CDP by these rules:
● Use the CDP in MELD vaults for yield farming.
● Withdraw the collateral from the MELD vault to return to the borrower when
the loan is fully repaid or on the borrower’s accepted request.
● Liquidate the entire position when the borrower fails to repay the loan or
when the collateral ratio passes the acceptable threshold.
● Liquidate a portion of collateral on the borrower’s request.
Borrowers can deposit more collateral to their CDP through the borrowing contract
to up the collateral ratio and avoid liquidation. They can also withdraw collateral if
the CDP’s collateral ratio allows, but this will reduce future yields and might contain
protocol fees. No one can interact with the CDP and locked values otherwise.
Vault Contract
Through this contract, different agents can provide crypto liquidity to yield farm on
swap fees. Cardano agents can also perform swaps through the contract, which
keeps track of all investments to split rewards and to validate liquidity withdrawals
from the providers.
Staking Contract
Through the staking contract, a protocol user can stake MELD tokens to earn
protocol rewards. The staked MELD tokens are used to provide insurance against
collateral liquidation and LP impermanent loss. The contract allows users to unstake
anytime.
Governance Contract
This contract governs protocol parameters and the proposals that change them.
MELD holders can pay a small fee to open proposals that MELD stakers can vote on
through this contract. When the voting period ends, rejection occurs when a
proposal does not meet the required minimum number of participants and yes

votes. If the proposal passes, the MELD DAO will begin planning and executing the
proposal.
Fiat Contract
Through the fiat oracle contract, an oracle can update the real-time price of relevant
assets on the protocol. This is a requirement to update the collateral ratio of CDPs.
Security Contract
Through the oracle contract, an oracle can update the real-time price of relevant
assets on the protocol. This is a requirement to update the collateral ratio of CDPs.
Functional Diagram
Agents
Agent Type Description
Fiat Liquidity Providers / These people deposit fiat to the protocol to earn
Lenders interest and yield.
Borrowers These people deposit cryptocurrencies as on-chain

collateral to borrow fiat.
Crypto Liquidity Providers These people deposit cryptocurrencies to our liquidity

pools to provide liquidity for traders and receive yield.
Traders These people trade Cardano native tokens (melded

tokens included) on our exchange.
Stakers These people stake their MELD tokens to provide

insurance, earn rewards and participate in voting and
other governance processes.
Oracle Feeders These are automated agents that feed the real-world
price of different assets to our smart contracts.
MELD Vaults
The MELD vaults are publically available LPs. The LPs are single-sided where
liquidity is provided for a single token instead of pairs. The second side of the LPs is
from the protocol minting MELD tokens of the equivalent value.
All MELD vaults have MELD tokens on one side of the pair. This configuration allows
them to swap between any combination of pairs available across all vaults.
The protocol needs the LPs to create reward flows for its agents. The main design
goals are to reduce smart contract complexity, prevent impermanent loss, and to
provide convenience. At launch MELD will begin with a small number of deep pools
for a high level of liquidity and stability. Our LPs are composable and open for use by
other protocols and agents.
Staking the MELD Token

The protocol also provides staking opportunities using the MELD token. The staking
pool allows users to commit their MELD tokens in return for yield in MELD based on
the performance of the protocol as a whole. The staking pool is insurance funded by
users staking the MELD token. This pool provides insurance against potential
liquidity shortages in a black swan event and impermanent loss for liquidity
providers. The stakers in turn receive rewards from protocol fees.
Oracles
An oracle is a trusted source of information (e.g. a data feed) that gives smart
contracts the data needed to execute an action. Oracles can track the price of an
asset and provide a prediction of the asset in the future. The advantage of having
oracles is that it provides the smart contracts with the ability to execute an action
based on external events (such as a bank transfer). This is a crucial aspect of the
functionality of crypto-backed loans.
MELD will utilize oracle technology to fetch the price of the unwrapped versions of
MELDed assets to determine various protocol parameters such as user loan to value
ratios, liquidation events, and notification events for users. Additionally, the MELD
oracles maintain bridges between the blockchain and fiat accounts that send and
receive fiat funds as part of lending and borrowing.
Market Analytics
MELD utilizes oracle technology to relay the data gathered from market analysis to
various parts of the protocol. This includes smart contracts, notifications, display of
loan safety levels, and tools to hedge against crypto asset volatility.
Market analytics intends to provide tools to help MELD users in managing and
servicing their loans. It helps in the analysis of the crypto economy, and it creates

tools to support the market-based development of MELD. This is an extremely
important aspect of the MELD protocol because it can provide significant value for
users. To create the best possible experience for all users, it is critical to monitor the
market and provide the best possible tools for analysis. This includes tracking the
current value of crypto assets, as well as the value at any point in the past.
Loan Safety Levels

Our oracles provide our users with real-time data of their loan-to-value (LTV) ratio,
which is the ratio of the loan amount to the value of the underlying asset. This data
can serve as a decision-making tool for the borrower to determine whether or not to
repay the loan or to request additional collateral from the lender.
For crypto-backed loans, a user is able to withdraw fiat (USD or EUR) up to 50% of
the value held within the deposited crypto assets. This represents a 50% LTV ratio. If
the LTV of a user reaches 85%, a liquidation event will occur. If the value of the
collateral falls to LTV 65% or it stays above 50% for more than 3 days a margin call
occurs and the user receives a notification. When the LTV reaches 75% or stays
above 65% for more than 3 days the customer must add liquidity to reduce the LTV.
All these functionalities happen using our oracles.
Hedging
The MELD protocol has hedging techniques built into the risk oracle to mitigate
market volatility. The goal is to minimize liquidations executed during times of
extreme crypto price volatility.
Price volatility in the crypto market is eminent. For example, on May 17, 2021, the
market saw over $2.4 billion in crypto liquidations.22 The entire crypto market took
an aggressive 66% downturn within a 12-hour period, and then proceeded to regain
back 50% of the losses the following 12-hour period. A user should not experience
liquidation of their position if the rebound is within such a brief time span.
It’s times like this where our risk model will implement a grace period for loan
participants, integrating our treasury funds to offset any liquidations that could
have occurred during this short span of time.
Fiat Liquidity
Funding
Fiat liquidity providers begin by setting up the MELDapp account. All fiat liquidity
providers need to pass KYC/AML in order to provide fiat (USD and EUR) funds. Upon
completion of the KYC the liquidity provider will receive bank account details to wire
money. Verification of funds receipt will appear on the MELDapp.
The liquidity provider can choose to apply funds to loans or to MELD vaults. Each of
these options come with different terms and yield. Unless otherwise set by the
liquidity provider, withdrawals can happen at any time.
The blockchain records every action in the liquidity funding process and can
undergo audit at any time either via the MELDapp or by an independent
organization.

Fiat Borrowing
Loan Origination
The MELDapp is the source for loan creation. Users first set up an account and
choose a collateral funding method. Users only need to complete KYC if they are
taking out a fiat loan. When KYC has been completed users can deposit their
collateral to a CDP.
Loan Jurisdiction
Once the loan terms are set, the user must choose a jurisdiction to wire the money.
This, in turn, can affect some parameters of the loan based on usury laws in the
jurisdiction.
MELDapp
Wallet Creation and Management

Wallet creation is a function of the MELD app, which is available from the iOS and
Android app stores as phone apps, or through the Google Chrome web store as a
browser extension.
Wallet creation is 100% free. It takes less than 5 minutes. Users will have to abide by
KYC/AML procedures during the wallet creation setup to use any of the loan
offerings by the MELD protocol.
Loan Creation
Once a user downloads the MELDapp, creates a wallet, and fills out all necessary
KYC/AML procedures, they can now start utilizing the MELD protocol, including the
creation of crypto-backed loans. From here, users can deposit their crypto assets
directly to the MELDapp to attain the MELDed version of the asset.
The protocol requires wrapping of deposited crypto assets before being eligible as
collateral for a crypto-backed loan, or a line of credit.
Once deposited, the user can withdraw up to 50% of the value of the underlying
crypto asset as fiat or credit. For a loan, the fiat receipt occurs via wire transfer
directly into the user’s bank account. As for the line of credit, users can use the
MELD debit card to gain access to the available fiat from the deposited crypto asset.
Loan Maintenance
Due to the nature of price fluctuations of crypto assets, loan maintenance from the
user’s perspective is of utmost importance. Users who decide to deposit their
crypto to open a collateralized debt position open the door to a variety of new risks
that could result in loan liquidation, forcing the sale of the deposited crypto asset to
repay the debt.
Keeping track of the price of the underlying deposited crypto asset and the LTV
ratio are key metrics to reduce the risk of CDPs. Users may want to deposit more of

a crypto asset to decrease their LTV ratio. On the other hand, if the underlying
crypto asset appreciates in price, the user may be inclined to withdraw more fiat.
The protocol has some safeguards for users who open a CDP, but either way, the
risks are there, and maintenance from the user is a prerequisite to ensure the
position does not get liquidated.
Staking
Staking MELD tokens is of utmost importance for the MELD protocol, as it will act as
an issuance pool for various loan activities that will exist within the MELDapp. Users
who stake their MELD tokens are rewarded with liquidity-providing incentives
initially coming from the tokenomics allocation, but eventually including 40% of all
protocol fees.
For the initial MELDapp launch we had a 12 month and a 6 month locked-staking
option, allowing users to earn 15% APY and 12% APY respectively. A Flex stake pool
will be available to users soon after the conclusion of the locked-staking options,
allowing users to stake and unstake their MELD at will.
Vesting
Investors who have purchased MELD through the private sale are able to claim their
vested MELD through the MELDapp.
Delegation
During the initial phases of the MELD protocol launch, an initial stake pool offering
(ISPO) will be performed to generate revenue for MELD as well as provide rewards to
stakers, paid in MELD tokens.
Participants of the ISPO must delegate ADA to MELD Cardano pools to gain MELD
rewards. There is no limit to the amount of ADA that can be staked.
Notifications
Our oracle notifies the user whether the forecast predicts an increase in their LTV
ratio to unsustainable levels under the protocol. In such a case the borrower would
either contribute more crypto or make a partial repayment.
As oracle analyses transpile continuous real-time data, borrowers receive
notification about changes in their borrowing positions. In extreme market risk, our
oracle provides details about actions needed by borrowers that are over lending
relative to their current market position.
DeFi API
DeFi solutions require flexibility and low barriers to integration. Our application
programmable interface (API) provides crypto and traditional institutions with an
interface to integrate MELD into their existing digital solutions. Meld’s data model,
based on GraphQL, provides a continuous flow of relevant data from the protocol.
The API also provides ease of use, and inexpensive interactions provide a universal
tool for access within the protocol.

Risk Management
Our automated risk model performs all of the risk management for MELD. Our model
actively evaluates and scans the market for various metrics such as crypto price
volatility, the price of assets, and backtests historic data to ensure protocol
parameters are set with optimal risk management. The risk model will also take
liquidity considerations to ensure the protocol does not suffer significant losses
during market drops.
Our design of the risk model is robust concerning changes in the market and can
adjust to changing market conditions with minimal human involvement.
MELD ensures maintaining dialog with protocol users by providing direct access to
administrators for answering questions, solving problems, and providing updates.
Our team is actively involved in the community through our Telegram channel,
Discord, and other social media channels. We are committed to maintaining an
ongoing presence and providing prompt solutions.
Auditing
We individually test all our smart contracts before deployment, via testnet and on a
private blockchain. We also work with reputable blockchain-related companies to
further help us perform smart contract audits (Tweag)
Once we deploy, we can audit smart contracts to gather data on what’s happening
in real-time and how users are interacting with the smart contracts. We utilize
historic data to backtest all of our strategies and algorithms to find optimal settings.
We then analyze the data gathered from our smart contracts and users’ interactions
with them. In turn, we use this data to inform our strategy and modify our
algorithms to optimize asset security.
The data we gather is also helpful for making business decisions, such as
onboarding new users and adding innovative features.

Customer Acquisition
Blockchain’s mainstream moment will come, not when people understand how it
works, but why they need it. MELD takes you on a quantum leap into a new
paradigm where the old rules of finance no longer exist.
Not only will MELD recruit customers from existing crypto holders, but we will also
take an active role in bringing new players to the crypto/blockchain ecosystem by
giving them a way out of their financial worries. Our strategy consists of 4 main
components:
Building a strong community

Our focus on building the community will serve to both create the first layer of
customers ready to use MELD once it is operable and secondly as ambassadors &
cheerleaders in spreading the word. The community building will be spearheaded by
creating stakeholders through the Initial Stake Pool Offerings (ISPO) and referrals.
Strategic Partnerships
We have already partnered with other crypto/blockchain platforms that will include
MELD as a financial product for their customers. In addition, we will be partnering
with centralized exchanges to have MELD listed on their trading platforms and
provide these exchanges access to our borrower LPs. This will increase capital
efficiency, provide better margin offerings to their users, and provide MELD
fiat-lenders with better interest rates. We will continue this approach so as to
benefit from easy access to large user and customer bases.
Influencer & Content Marketing

We will use both influencer and content marketing to first create attention about the
ISPO, build the community, and acquire further customers.
Our influencer marketing approach will cover both the use of crypto influencers as
well as ensuring crypto thought leaders & celebrity endorsements. This includes
sponsorships of podcasts & youtube channels and cooperations with Twitter,
YouTube, and TikTok influencers. In addition, we will focus on influencers with
personal finances that operate outside the crypto sphere.
Our content marketing will equally be focused on both the specialized crypto media
as well as the mainstream press. It will also drive traffic through SEO linking to our
own domain ensuring that we attract the customers actively searching the net for
crypto loans.
Democratization of Financial Tools

As part of our mission to convert the general public into crypto holders we will be
running more traditional-based marketing campaigns to educate them about the
benefits of blockchain technology for their financial situation. In the way that the
mass adoption of the internet came when people understood, not how it worked,
but why it was a benefit to them, we will be highlighting how blockchain technology
and its financial benefits can change people’s lives.

Tokenomics
Protocol Functions
The MELD protocol is building the core DeFi infrastructure on Cardano by offering a
list of services at the heart of decentralized finance. Below is a list of the services
and a brief explanation of how they will function:
MELDed Assets
MELD provides infrastructure for wrapping or MELDing assets from other networks
and having their permissionless version on Cardano. The initial scope of those
assets includes the following list and, later on, expand to assets from other chains.
● renBTC
● ETH
Lending and Borrowing

MELD offers both centralized (integrated with the real world fiat) and decentralized
lending.
Decentralized lending works without either party having to identify themselves. The
borrower puts up collateral that the lender will automatically receive if their loan is
not repaid. This allows you to borrow money without credit checks or handing over
private information, unlock centralized lending that requires AML and KYC
processes.
When you opt for decentrealized lending you have access to funds deposited from
all over the globe, not just the funds in the custody of your chosen bank or
institution. This make loans more accessible, improves the interest rates, and the
overall lending and borrowing experience.
Borrowing can give you access to the funds you need without needing to sell your
assets (a taxable event). Instead you can use your asset as collateral for a loan. This
gives you the cash-flow you need and lets you keep your asset and avoid a taxable
event.
MELD Vaults
AMM with single-sided liquidity and impermanent loss protection. MELD vaults offer
AMM with the possibility for a single side exposure to an asset.
Also, the IL (impermanent loss) protection is part of the protocol and funded by
protocol participants (explained further in this document).
MELD Staking Pools

The function of the protocol insurance pool is two-fold:
● Protect protocol lenders in case of cascading liquidation and in case some
collateral is sold below the loan value.
● To compensate users in case of impermanent loss on the AMM protocol.

To achieve that MELD token holders can stake their tokens in a MELD stake pool.
Those funds can then be used to compensate lenders and AMM LP providers. In
order to compensate insurance pool participants for the added risk which they are
taking, MELD will distribute 40% of all fees collected on the protocol to them.
Users will have the option to stake their MELD tokens with or without duration.
Users who stake with duration will receive a multiplier on their reward share,
identical to the one described in the governance section of this document.
Regardless of stake duration, there is a 7 day cooldown period when users request
to unstake. During the cooldown period, the MELD tokens are still available to the
insurance pool. This is done to avoid “run on the bank” situations when an insured
event occurs.
MELD Token
The MELD token is a multi-purpose token on the MELD protocol. Its core functions
are:
● Protocol governance
● Incentivization
● Fee reductions
● Protocol insurance
Our token is the medium of exchange under the MELD protocol. Token holders are
given incentives to not only utilize their MELD tokens when desirable but maintain a
minimum balance to maximize their future earnings under the protocol. To maintain
holding utilization, staking provides an annual percentage yield (APY), and fee
reductions further strengthen the functions of MELD as a utility for lending and
long-term appreciation. Additionally, once reaching a significant milestone of
decentralization, introducing protocol governance requires maintaining at least a
certain fraction of total supply. The protocol has a fixed supply of 4 Billion MELD
tokens with deflationary mechanisms of buybacks and liquidity pool yield. The initial
distribution is:

Private Sale and ISPO
The MELD token will be offered in two stages.
Private sale
Our first offering is a private sale to key contributors and investors. Under the private
sale, token holders vest 4% per month until fully vested.
Initial Stake Pool Offering (ISPO)

An ISPO is a revolutionary new way for investors and the community to support
MELD using the Cardano blockchain. In an ISPO users can delegate their ADA using
the Yoroi or Daedalus wallet to the public MELD stake pools (ticker MELD1, MELD2
etc.) for any period which they choose. Depending on the duration and quantity of
ADA staked, delegators will receive MELD tokens as an award.
In the ISPO Stake pool, MELD LABS will get some of the ADA staking rewards
generated by the pool. As a reward for taking part in the ISPO, MELD will distribute
800m of MELD Tokens, airdropped within 5 minutes of MELD token launch.
Additionally, if the ISPO manages to fill ten Cardano staking pools with 64 million
ADA each, a bonus of 200 million MELD tokens will be taken from the private sale
and used to add rewards for more staking pools.
We believe the ISPO model is much closer to a fair launch than any other option
available and we think this is particularly exciting as it’s native to the core
functionality of Cardano.
A plan is in place that the initial stake pool offering (ISPO) will take place July 1, 2021,
and lasts until the launch of MELD on December 8, 2021.
Participants of the initial offering can delegate any amount of ADA to MELD ISPO
pools for any chosen duration of the offering. Users will have the ability to unstake
their coins at any time. The calculation of MELD token rewards takes place for each
Epoch (5 days).
Types of MELD ISPO Pools
● 100% Pool - In these pools MELD will receive 99% of the ADA block rewards
and participants will get approximately 2 MELD for every 1 ADA they stake
for the full period.
● 50/50 Pool - In these pools MELD will receive 50% of the ADA block rewards
and participants will get both 50% of the block rewards and approximately 1
MELD for every 1 ADA they stake for the full period.
The criteria for the ISPO delegation is as follows
● The amount of ADA tokens delegated.
● The duration for which the tokens were delegated per epoch.
● Delegation is calculated based on ADA staked at the start of an epoch (if
you stake mid epoch it will be counted starting the next epoch.

Example
● If 100 ADA is delegated to the 50/50 ISPO stake pool on day one and it is
left for the full ISPO period of 32 Epochs you will be rewarded approximately
100 MELD and an estimated 2 ADA in block rewards.
● If 100 ADA is delegated to the 100% ISPO stake pool on day one and it is left
for the full ISPO period of 32 Epochs you will be rewarded approximately
200 MELD.
Token Schedule & Allocation

Our token schedule starts after the private sale. The release of 4% of the private sale
tokens are as liquid MELD, becoming available for trading platforms. The rewards for
participating or utilizing the token provides rewards for staking that amount to 0.10%
a day for the remaining number of outstanding tokens in the reward pool. All
protocol participants will receive these awards. Further distribution of reward pools
will depend on what actions supply the most value and utility to the protocol. Giving
low daily amounts of rewards provides that the outstanding tokens have a
technically perpetual amount by always distributing 0.1% of outstanding rewards.
The chart below depicts our pool distribution, the token inflation consequence, and
its proportional allocation to our total supply.
Team members, advisors and partners have a lockup period of 9 months from token
launch and then begin their 4% vesting per month.
Token Schedule

Token Allocation
Inflation
Fee Structure
The MELD protocol collects fees for various types of utilization. For wrapped assets,
the fee charged is 0.2% for each transactional direction. Fees are also taken on as a
3% margin on loan interest rates. Finally, finalizing swaps charges a 0.2% fee where
0.15% goes to liquidity providers and 0.05% to the protocol. Our protocol highlights
at or below fee pricing compared to the competition.
● Wrapped assets - 0.2% fee
● Margin loans - 3% fee
● Swaps - 0.3%

Furthermore, customers can save 25% on transactions by holding a certain amount
of MELD tokens. The specific amounts will change relative to time and continuously
be adjusted during the early stages of governance. Note that the 0.05% fee is
collected and distributes 10% of those earned fees to MELD holders as liquidity pool
providers and staking entities.
Fee Distribution
MELD Protocol Stake Pools

The function of MELD Staking Pools is to provide two forms of insurance:
● Protect protocol lenders in case of cascading liquidation and in case some
collateral is sold below the loan value.
● To compensate users in case of impermanent loss on the AMM protocol.
To achieve that, MELD token holders can stake their tokens in the insurance pool.
Those funds are then used to compensate lenders and AMM LP providers. In order
to compensate insurance pool participants for the added risk which they are taking,
MELD will distribute 40% of all fees collected on the protocol to them.
Users will have the option to stake their MELD tokens with or without duration.
Users who stake with duration will receive a multiplier on their reward share,
identical to the one described in the governance section of this document.
This turns the MELD tokens staked in the insurance pool into de-facto cash-flow
generating tokens.
Participants Incentivisation
MELD will incentivize protocol participants via its reward pool. The exact incentive
amounts will be updated via governance:
● Providing fiat liquidity
● Borrowing
● Using MELDed assets
The rewards for those actions will be taken from the reward pool. Every day 0.10% of
the outstanding tokens in the reward pool will be distributed amongst all protocol

participants. The exact further distribution of that 0.10% will depend on which
actions currently bring the most value to the protocol.
Having 0.10% distributed from the outstanding tokens in the pool means that the
pool is technically perpetual (e.g. it never depletes) but the rewards get smaller over
time. The charts below depict the pool distribution, the token inflation which it
creates, and its proportion to other token allocations.
Buyback & LP
Buyback and burn schemas have been very successful and popular mechanics in
the crypto space, which has historically helped token price appreciation and
keeping the tokens scarce.
Burning tokens based on collected fees has some very desirable effects. The
approach’s beauty is the inverse correlation between the project’s success and the
number of tokens burned, essentially creating a self-regulating mechanism for the
total number of tokens in circulation.
With the emergence of decentralised finance (DeFi) and automated market makers
(AMM) such as UniSwap, however, a new approach has emerged which has the core
benefits of the buyback and burn approach, together with the added value of
deeper liquidity - buyback and liquidity provision. In this scenario, instead of
burning tokens, they are first provided as liquidity for the token on its main AMM
market, and then the resulting LP tokens are burned. Thus combining the benefits
of the reduced token supply together with deeper liquidity for the token.
In the case of MELD, 20% of all fees collected on the protocol will be used as funds
for buyback and LP.
Participants incentivisation
MELD will incentivize protocol participants via its reward pool. The exact actions
while will be incentivized and the exact incentive amounts will be up for
governance, but some examples include:
● Providing protocol liquidity
● Taking loans
● Participating in governance
● Providing liquidity for the MELD token
The rewards for those actions will be taken from the Reward pool. Every day 0.10%
of the outstanding tokens in the reward pool will be distributed amongst all protocol
participants. The exact further distribution of that 0.10% will depend on which
actions currently bring the most value to the protocol.
Having 0.10% distributed from the outstanding tokens in the pool means that the
pool is technically perpetual (e.g. it never depletes) but the rewards get smaller over
time. The charts below depict the pool distribution, the token inflation which it
creates, and its proportion to other token allocations.
Governance
MELD is integrating a decentralized autonomous organization (DAO) into its protocol
functionality. DAOs enable community members to contribute to future protocols as

MELD Improvement Proposals (MIPs) to other governance participants. Our
decentralization model aims to ensure that no parties are powerful enough to
convince a majority of participants to change protocol parameters such as minting
assets. DAOs explicitly maintain the rules that every participant must follow to join,
and utilize the protocol equally. Our final stage implements voting that ensures that
MELD’s protocol maintains improvements from a consensus of its participants.
Stakeholders are able to participate in voting, and governance activities provided
they maintain at least 0.01% of the total token supply. The MELD governance will
have three distinct stages for implementing the DAO:
Stage 1 — Early days

During this period, the team is in complete control of the project, and no voting is
done. This is because there will be bugs and events which may require immediate
hotfixes, and this cannot be done democratically.
Stage 2 — Semi-decentralization
During this period, the team is still in complete control of the project and can deploy
hotfixes the same as above, but for the non-urgent decisions, MELD stakers will get
1 vote per wallet and will be used to vote on MELD Improvement Proposals managed
by the MELD team.
Stage 3 — Complete decentralization

During this stage, the project is fully decentralized, and all decisions are made via a
strict procedure, and all voting is done on-chain. The process is detailed below:
Once MELD transitions fully to Stage 3, the following governance structure will be
implemented: Governance will be exercised by users via voting power (VP). VP is
determined by the number of MELD tokens staked in the governance contract and
the duration for which they are staked.
Governance will be done via voting power (VP). VP is determined by the number of
MELD tokens staked in the governance contract and the duration for which they are
staked for. More formally:
Where:
● is the number of tokens staked

is a multiplier based on the stake duration in weeks.
Then we further define as:
We can then plot for as follows:

During Stage 3, MELD will follow a governance structure similar to that of
Compound, as follows:
Anybody with 0.01% of MELD delegated to their address can propose a governance
action; these are simple sets of activities, such as changing parameters of the
platform that no one else can modify. Proposals are executable code, not
suggestions for a team or foundation to implement.
All proposals are subject to a three-day voting period, and any address with voting
power can vote for or against the proposal. If a majority and the minimum votes (i.e.,
quorum) are cast for the proposal, it is queued in a timelock and can be
implemented after two days. The quorum is currently set to 50% of all governance
votes.
Anyone can also cancel a proposal if the original proposer loses the required vote
power to create proposals (0.01% of total governance votes) after it was added. This
helps prevent someone from making a malicious proposal and immediately
withdrawing the governance contract’s votes.

Token Generation Event
Basics
Ticker MELD
Jurisdiction: Singapore & Switzerland
Initial Total Tokens: 4,000,000,000
Token type: Deflationary (buybacks)
Token Generation Events 1

6ac8ef33b510ec004fe11585f7c5a9f0c07f0
Policy ID
c23428ab4f29c1d7d10
During an initial seed launch period, a portion of the tokens will be distributed
among the core contributors, who can delegate voting weight to themselves or
the public as they see fit.
ISPO
Tokens Rewards Available 800,000,000
Reward Bonuses +200,000,000 to Reward Pool
Total ISPO token allocation 1,000,000,000 MELD
Minimum delegation 10 ADA
Maximum delegation NA
100% Approx. Rewards 1 ADA per Epoch 0.065 MELD
50/50 Approx. Rewards 1 ADA per Epoch 0.0325 MELD
Duration in epochs 32
Stage start July 1, 2021
Stage end December 6, 2021
Vesting Schedule
Participant Allocation Vesting
Team 17.5% t+9 Month, then 4% per month
Advisors t+9 Month, then 4% per month
Partners t+9 Month, then 4% per month
Private Sale 30% 4% per month
ISPO NA
Foundation Sell ban (Buyback only)

Use of proceeds

Breakdown of Token Release Schedule

Limitations
“The only function of economic forecasting
is to make astrology look respectable.”
― John Kenneth Galbraith (economist, bestselling author)
It is important to note that the blockchain and cryptocurrency space is still very
new. There is very little historical data, past performance results, or academic
research on the topic of cryptocurrencies when compared to the historical data
available for standard stocks and equities, let alone the lack of data available for
tokenization, economics, and long-term valuations of these digital assets. Stocks
(equity) have been around since the early 1600s, and it is only in the past 100 years
that we have begun to have more comprehensive and widely accepted valuation
models. However, they are still subject to bias and interpretation and suffer from
their inputs’ quality. On the other hand, Cryptocurrencies have been around since
2008, with a broader recognition around 2016 and an explosion in the number of
tokens in 2017. As such, it is way too early to evaluate or comment on the
performance, monetary policy, and models behind any of them. As a result, we
prefer to rely on sound economic principles backed by data and reasonable
assumptions.
Furthermore, any financial projections should generally be treated as a target rather
than a prediction. Their purpose is to ensure that the project has sensible and
achievable goals, and upon reaching those goals, the rest of the numbers would
add up and make sense. On the other hand, they cannot predict the future nor
account for all possible variables and scenarios with any reasonable degree of
certainty.
The overall goal of this document is to provide a framework that can be used to
evaluate the underlying economic principles behind a blockchain project, and upon
doing so, we can compare the project to other similar ones in the market to try to
determine the likelihood of the success of MELD.
Finally, it is important to note that this is an early draft and is meant to be a living
document to be updated as we learn more about the space and as it evolves. We are
open to suggestions, corrections, and constructive criticisms and feedback.

Disclaimer
PLEASE READ THIS SECTION OF THE DOCUMENT CAREFULLY. CONSULT LEGAL, FINANCIAL, TAX, OR OTHER
PROFESSIONAL ADVISORS; IF YOU ARE IN ANY DOUBT ABOUT THE ACTION, YOU SHOULD TAKE. THIS DOCUMENT’S
INFORMATION MAY NOT BE EXHAUSTIVE AND DOES NOT IMPLY ANY ELEMENTS OF A CONTRACTUAL RELATIONSHIP OR
OBLIGATIONS. WHILE WE MAKE EVERY EFFORT TO ENSURE THAT ANY MATERIAL IN THIS DOCUMENT IS ACCURATE AND
UP TO DATE, SUCH MATERIAL IN NO WAY CONSTITUTES PROFESSIONAL ADVICE. WE DO NOT GUARANTEE NOR ACCEPT
ANY LEGAL LIABILITY ARISING FROM THE ACCURACY, RELIABILITY, CURRENCY, OR COMPLETENESS OF ANY MATERIAL
CONTAINED IN THIS DOCUMENT. NO PART OF THIS DOCUMENT IS LEGALLY BINDING OR ENFORCEABLE, NOR IS IT
MEANT TO BE.
THE AUTHOR DEVELOPED THIS DOCUMENT BASED ON AN EVALUATION METHOD GENERALLY ACCEPTED BY THE
CRYPTOCURRENCY COMMUNITY (QUANTITY THEORY OF MONEY AND DISCOUNTED CASH FLOW ANALYSIS) AND RELIES
ON A GENERALLY ACCEPTED SCHOOL OF ECONOMIC THOUGHT (MONETARIST SCHOOL OF ECONOMICS). IT IS
IMPORTANT TO NOTE THAT THE BLOCKCHAIN AND CRYPTOCURRENCY AREA IS STILL VERY NEW. There is very little
historical data, past performance results, or academic research on the topic of cryptocurrencies when compared to the
historical data available for standard stocks and equities, let alone the lack of data available for tokenization, economics,
and long-term valuations of these digital assets. STOCKS (EQUITY) HAVE BEEN AROUND SINCE THE EARLY 1600S, AND
IT IS ONLY IN THE PAST 100 YEARS THAT WE HAVE BEGUN TO HAVE MORE COMPREHENSIVE AND WIDELY ACCEPTED
VALUATION MODELS. HOWEVER, THEY ARE STILL SUBJECT TO BIAS AND INTERPRETATION AND SUFFERED FROM
THEIR INPUTS’ QUALITY. ON THE OTHER HAND, CRYPTOCURRENCIES HAVE BEEN AROUND SINCE 2008, WITH A
BROADER RECOGNITION AROUND 2016 AND AN EXPLOSION IN THE NUMBER OF TOKENS IN 2017. AS SUCH, IT IS WAY
TOO EARLY TO EVALUATE OR COMMENT ON THE PERFORMANCE, MONETARY POLICY, AND MODELS BEHIND ANY OF
THEM. AS A RESULT, THE AUTHOR OF THE CURRENT DOCUMENT PREFERS TO RELY ON SOUND ECONOMIC PRINCIPLES
BACKED BY DATA AND REASONABLE ASSUMPTIONS.
FURTHERMORE, THE CURRENT MODEL RELIES ON SEVERAL ASSUMPTIONS, FORECASTS, AND REQUIREMENTS
EXPLICITLY SPECIFIED BY THE COMPANY BEHIND THE TOKEN OFFERING. AS SUCH, THIS MODEL IS ONLY AS GOOD AS
THOSE ASSUMPTIONS ARE. ANY SIGNIFICANT DEVIATION FROM THE INPUT NUMBERS WOULD SUBSEQUENTLY IMPACT
THE OUTPUTS OF THIS MODEL. THE MODEL PRESENTED HERE AIMS TO PROVIDE A FAIR TOKEN PRICE VALUATION
BASED ON THE MERITS OF THE BUSINESS BEHIND IT (AS FAR AS THEY ARE KNOWN/ESTIMATED AT THE TIME OF THE
CREATION OF THIS MODEL) AND CANNOT ACCOUNT FOR ANY POSSIBLE SPECULATIVE ACTIONS AND MARKET
MANIPULATION BY ANY PARTY AS WELL AS FOR IRRATIONAL MARKET BEHAVIOR.
NONE OF THE INFORMATION OR ANALYSES IN THIS DOCUMENT IS INTENDED TO PROVIDE A BASIS FOR AN
INVESTMENT DECISION, AND NO SPECIFIC INVESTMENT RECOMMENDATION IS MADE. THIS DOCUMENT DOES NOT
CONSTITUTE INVESTMENT ADVICE OR AN INVITATION TO INVEST IN ANY SECURITY OR FINANCIAL INSTRUMENT. NO
REGULATORY AUTHORITY HAS EXAMINED OR APPROVED ANY OF THE INFORMATION SET OUT IN THIS DOCUMENT. NO
SUCH ACTION HAS BEEN OR WILL BE TAKEN UNDER THE LAWS, REGULATORY REQUIREMENTS, OR RULES OF ANY
JURISDICTION. YOU ACKNOWLEDGE AND AGREE THAT YOU ARE NOT USING THE INFORMATION IN THIS DOCUMENT FOR
PURPOSES OF INVESTMENT, SPECULATION, AS SOME TYPE OF ARBITRAGE STRATEGY, FOR IMMEDIATE RESALE, OR
OTHER FINANCIAL PURPOSES.
SOME OF THE DOCUMENT’S STATEMENTS INCLUDE FORWARD-LOOKING STATEMENTS THAT REFLECT OUR CURRENT
VIEWS CONCERNING EXECUTION ROADMAP, FINANCIAL PERFORMANCE, BUSINESS STRATEGY, AND PLANS. ALL
FORWARD-LOOKING STATEMENTS ADDRESS MATTERS THAT INVOLVE RISKS AND UNCERTAINTIES AND DO NOT
GUARANTEE THAT THESE RESULTS WILL BE ACHIEVED AND MAY LEAD THE ACTUAL RESULTS TO DIFFER MATERIALLY
FROM THOSE INDICATED IN THESE STATEMENTS. NO STATEMENT IN THIS DOCUMENT IS INTENDED AS A PROFIT
FORECAST.
GIVEN THAT THE “REGULATIONS” FOR CRYPTOCURRENCY IN MOST COUNTRIES AT BEST ARE HIGHLY AMBIGUOUS OR
COMPLETELY NON-EXISTENT, EACH BUYER IS STRONGLY ADVISED TO CARRY OUT A LEGAL AND TAX ANALYSIS
CONCERNING THE PURCHASE AND OWNERSHIP OF CRYPTOCURRENCY AND TOKENS ACCORDING TO THEIR
NATIONALITY AND PLACE OF RESIDENCE.
EVERYTHING IN THIS DOCUMENT IS THE AUTHOR'S OWN WORK, WITH EXTERNAL SOURCES AND REFERENCES
PROVIDED WHERE APPROPRIATE. SOME PARTS OF THIS DOCUMENT, ON NON-PROJECT-SPECIFIC TEXTS, CHARTS,
GRAPHICS, AND FORMULAS, MIGHT BE IDENTICAL WITH OTHER DOCUMENTS PRODUCED BY THE SAME AUTHOR.
THESE INCLUDE BUT ARE NOT LIMITED TO THE EXPLANATION OF SOME FORMULAS, MODELING TECHNIQUES,
ECONOMIC THEORIES, AND POLICIES.

References
1. https://www.buybitcoinworldwide.com/how-many-bitcoin-users/
2. https://bitcoinexchangeguide.com/7-things-you-should-know-about-your-
average-crypto-investor/
3. https://techjury.net/blog/cryptocurrency-statistics/
4. https://globalfindex.worldbank.org/sites/globalfindex/files/chapters/2017%2
0Findex%20full%20report_chapter2.pdf
5. https://www.worldbank.org/en/news/press-release/2018/04/19/financial-in
clusion-on-the-rise-but-gaps-remain-global-findex-database-shows
6. https://www.coindesk.com/ICO-tracker
7. https://coinmarketcap.com/charts/
8. https://blog.latoken.com/lat-research-the-exponential-growth-of-crypto-
markets-to-5-trillion-416c73429148
9. https://www.forbes.com/advisor/banking/costs-of-being-unbanked-or-un
derbanked/
10. https://en.wikipedia.org/wiki/Cardano_(blockchain_platform)
11. https://en.wikipedia.org/wiki/Decentralized_finance
12. https://news.bitcoin.com/cambridge-universitys-third-crypto-study-record
s-101-million-cryptocurrency-users-worldwide/
13. https://www.pwc.com/gx/en/financial-services/pdf/pwc-elwood-annual-cr
ypto-hedge-fund-report-may-2020.pdf
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15. https://www.oecd.org/pensions/Pension-Funds-in-Figures-2020.pdf
16. https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-char
t
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ominating-crypto/
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vestors-statistics-2020_9a827fb7-en#page175
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20. https://en.wikipedia.org/wiki/Decentralized_exchange
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-summary-e35c0c017bcf
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MELD WHITEPAPER

Be Your Own Bank.

Version 1.8 Jan 30, 2023 PAGE 2 of 51

What We Stand For 6

MELD Product Market Fit 9

MELD Business Model 11

Products & Services 14

Token Generation Event 48

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Build DeFi products that level the playing field and

Self-sovereign Financial Tools

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Expensive & Tax Inefficient Cheap & Tax Efficient

Crypto rich but cash poor Crypto collateralized loans

Capital Inefficient Capital Efficient

Lack of trust and transparency Blockchain smart contracts

Inefficient liquidation of assets Instant access to cash

Inefficient & Slow Fast & Methodical

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Credit checks No credit checks

Burdensome & Invasive Secured by Smart Contracts

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1. Fiat Liquidity Lending

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4. MELD Vaults (Liquidity Pools)

5. The MELD Token

7. Crypto Collateral Returned

8. Fiat Liquidity Returned

The MELD Foundation

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The MELD DAO

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Crypto-Backed Line of Credit

MELD Debit Card

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mBTC mETH mBNB mUSD mEUR

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➔ 101 million crypto users worldwide12

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Bitcoin Traders by Country

Bitcoin Ownership by % of Population

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Banking the unbanked

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MELD vs Other Lending Solutions

Approval Instant Instant Variable Very Slow

Fees No Yes (Application Yes (Membership Yes (Application

Personal Worldwide Limited Variable Limited

Business Worldwide Worldwide Variable Worldwide

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