The meld protocol receives liquidity through staking of meld and protects the 'staker' against liquidations. This is incentivized through the NFT given to ISPO participants (up to 400 million meld staked from ISPO participants). This post enquires about the ratio of staked meld to non-staked meld as an important parameter for a healthy ecosystem.
When the MeldApp launches, there will naturally be high volume in the first 24-48 hours. We know that Bitcoin does crazy things in a 24-48 hour time-frame. So would it be necessary to add a 'pause' time for the initial 24-hour period of the lending protocol to allow for the ratio of staked meld to non-staked meld reach a certain threshold before it's allowed to be used?
If the ratio of meld assigned to the lending protocol is higher than the non-staked meld (something that is highly likely in the initial launch) and a black swan event occurs during this time, all of that volume (upto 400 million meld, and a lot of melded ADA from cardano community which has been waiting eagerly for such a project) could fall through.
Does staked meld provide security to the protocol? Is the buffer necessary? It's a one-off 24-hour pause for the chaos that will be the launch. Maybe the ratio doesn't matter at all. If the amount of staked meld provides enough 'offset' to protect liquidations in these type of events. Then I believe a buffer is necessary to carefully assign a threshold of staked meld.
Q1: may users stake meld on the meldApp when their meld is in their cardano wallet?
No comments:
Post a Comment