Jun 17, 2021

5 min read

Our 2 Main Clients

A look into MELD’s target clients

Our clients are anyone actively exposed to cryptocurrency from an Outer Mongolian shopkeeper that has .25 BTC to a successful Swiss crypto business with more than $100m in assets to a traditional institution looking to supplement their fixed income portfolio. All of us need fiat to live, work and play and crypto holders need it even more because they typically have invested a great deal into crypto assets, spending a good proportion of their fiat reserves on the purchasing of these assets in the first place.

Fiat Lenders & Fiat Borrowers

MELD has created a solution to the cryptocurrency dichotomy of:

People want to store their value in crypto and don’t want to leave their position
People need fiat to live and participate in society

MELD accepts fiat from lenders looking to earn an attractive interest return on their fiat. Fiat borrowers are able to utilize the deposited fiat by depositing cryptocurrency as collateral.

Fiat Lending

Fiat liquidity providers lend fiat to the MELD protocol, through the MELDapp, to earn high-interest yields. The yields earned for lending fiat on MELD’s protocol are sourced from various places, including interest paid from the borrower, trading fees APY from the liquidity pools of MELDed assets and protocol rewards.

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 have 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.

Our Clients

Crypto DeFi lending services, such as AAVE, C.R.E.A.M., and Yearn can offer other cryptocurrencies as a means to borrow against deposited crypto assets. MELD, on the other hand, is taking a different approach to DeFi lending services by being able to accept fiat as a means to issue fiat loans. This opens up the doors to include any company, individual or institution that would prefer and welcome an alternative lending method to traditional banks and peer-to-peer lending services.

Primary — Fiat Borrower

Our primary customer focus at MELD is to provide innovative borrowing solutions to customers looking to access the value locked within their cryptocurrencies. Any holder of cryptocurrency who has $50USD or more in their wallet can be a MELD customer and borrow against their crypto assets.

Global Individuals
Miners
Businesses
Crypto Exchanges

Secondary — Fiat Depositors

We’ve created fiat-lending liquidity providing investment opportunities with safe and attractive returns for individuals, institutions, as well as B2B customers. The fiat provided by lenders into the Protocol will be used to fulfill the borrower’s loan request. This fulfillment means realizing a user’s line of credit or successfully delivering a wire transfer that’s processed on behalf of a MELD user after completing their collateralized, crypto-backed loan.

Borrowers will have a series of terms to adhere to. The most important one being responsible for paying the applicable interest rate for the duration of the loan. The interest rates will be set based on the overall liquidity that is being provided and the demand from users to borrow fiat. As we progress, MELD will expand its fiat liquidity provider base to include centralized institutions that have significant capital reserves and are looking for a secure way to earn a solid and continual interest return on their fiat reserves. These institutions include, but are not limited to:

FinTech & E-Money entities
Brick-and-Mortar Banks
Online Banks
Pension Funds
Institutional Investors
Hedge Funds

Banking the unbanked

One of the reasons we’re building our 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, loans, etc. For example, in the United States, about 22% of US adults are “unbanked” and in developing countries, this number can be as high as 65%.

Conclusion

Integrating fiat lending into a DeFi lending protocol is new to the DeFi ecosystem and we are excited to offer this service amidst our operational commencement in Q4.

We look forward to delivering our novel and game-changing lending protocol that’s truly an innovative and fair solution to the lack of asset accessibility and usability that currently hampers the crypto sphere. MELD is confident in its array of services and sees itself being a positive pioneer within the $1.5 Trillion global lending market. MELD is committed to giving people the power to decide for themselves when and how much they borrow, with attractive and fair terms that don’t limit and suppress their positions but rather builds on their financial freedom and wealth.

Stay Tuned — MELD

We think it’s essential for everyone to gain control of their financial lives and have equal access to financial instruments used by professionals, not just centralized institutions, governments, or the 1%. 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 that is currently locked out of the global economy, including 2 billion individuals worldwide that are either underbanked or have no access to banking services whatsoever, access to these tools. These are the people that are paying the highest fees, getting the worst customer service, and they are the ones that are having the most problems.

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 be creating a collateralized debt position (CDP) with cryptocurrency, earning an interest return for lending fiat to borrowers, or even participating in reward incentive programs, we strive to provide our users with the functions they need to manage their own financial lives.