MELD will offer DeFi infrastructure for wrapping assets from other blockchain networks (ETH, BNB) to the Cardano blockchain that MELD operates on.
The initial scope of MELDed assets will include ETH, renBTC, 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 great respect for Bitcoin and Ethereum as 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 be named mETH. Each MELDed asset will have the same value as it does on their native blockchain, but they will have all of 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. We will work with the Binance Smart Chain Network to lock BNB to create mBNB.
MELDed assets can be created with the MELD protocol by sending ETH and renBTC to the MELD DAO, or they can be purchased from the MELD DAO LP with ADA.
MELDed assets are fully compatible with the Cardano network and can be traded, stored in Cardano wallets, and used in Cardano smart contracts. They can be redeemed at any time through the MELD DAO.
Cardano exchanges are starting with a very low trading volume with its native tokens given how young the platform is. With MELDed tokens, users should experience increased liquidity and participation from more mature chains like Bitcoin and Ethereum. Cardano transactions are faster and cheaper than both Bitcoin and Ethereum by miles, making it so much better to handle the original tokens from them.
Handling multiple tokens across different chains and transaction formats is no longer a concern for dApp users like exchanges, wallets, and payment services. With MELDed tokens, institutions and developers can interact with the tokens from different chains with only Cardano nodes.
dApps can now leverage tokens from other chains in Cardano smart contracts for lending protocols, funds, prediction markets, token sales, and more.