Introducing MetaMoneyMarket v0.1:

The Open Protocol for Maximizing Yield

Jacob Shiach
Aug 2, 2019 · 4 min read
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This is not MMM, this is an Interest Rate swap :P

At the start of the summer while on a particularly turbulent red-eye flight I was reading about interest rate swaps. Not as a form of literary NyQuil. I was on my way to attend the EthNewYork hackathon, and I got it in my head that it would be cool if there was a way to offer a fixed-rate product (CD’s) using an on-chain money market as the backer.

The problem was, which money market is a suitable stand-in for Libor or the Fed rate?

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Dai Rate Data via Loanlist

There are now multiple smart-contract based money markets you could supply your tokens to and earn a variable rate on. But by choosing a single market, how can you be certain you are getting the best lending rate for your funds?

You could manually move your funds whenever you notice the rates change, but unless you are a whale, you are almost certain to spend a lot of time and effort, just to end up right where you would have if you did nothing (minus a chunk of ETH).

I am excited to be sharing with you, MetaMoneyMarket!

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Besides being a fun tongue twister, MetaMoneyMarket is also an open-source Ethereum protocol that seeks to maximize yield by connecting multiple money markets. When a user deposits into the MetaMoneyMarket, it will then send that deposit it to the market with the best rate, and rebalancing when it makes sense to, helping you earn the maximum amount of interest for your magical internet money.

This launch includes:
* A live on main-net version of the MetaMoneyMarket smart contract
* Adaptors for Compound and dYdX
* Deposits represented as ERC20 Tokens
* Support for DAI, USDC, ZRX.

Our initial vision for the MetaMoneyMarket is one that will eventually sit on top of the top 3 safest and most liquid money markets, rebalances according to an on-chain algorithmic rebalancing strategy, and (eventually) insures deposits by charging a transparent, minimal fee. Hopefully providing a more stable and optimized on-chain lending rate that others can build on.

But our vision might be different than yours. Maybe you want more risk or time-locked deposits or maybe even the ability to rebalance between assets using Uniswap. Which is why we are building the underlying MetaMoneyMarket protocol to be composable.

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Anyone or any DAO can pick and choose from the available adaptors (or build their own), define their rebalancing strategy and deploy their own metamoneymarket contract. We’re especially excited about how MMM might connect with other controller interfaces like or Aragon or Melonport (MelonManagedMetaMoneyMarkets!!).

Important disclaimer before you click through and start depositing, while the protocol is on main-net, this is primarily so we can test things not feasible while on test-net, this is very much still an unaudited very early release. Please do not deposit funds except to help us test this. We can not guarantee we’ll be able to recover funds in the event things go wrong.

Disclaimer aside, we felt the risks from releasing this early was worth it. We believe in the potential of open source finance, so we really hope MMM is something the wider Ethereum community both has a chance to contribute to and can benefit from.

  • The MetaMoneyMarket is currently running on MainNet, and the source code is available on Github. we’d love your feedback!
  • If you’d like to be a part of development, have ideas, questions, or just want to talk open source finance please join our discord, it’s brand new!


Building the DeFi Bank

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