Initial Stake Pool Offering (ISPO) - MELD on Cardano Explained Simply - video Dailymotion

Decentralised News

Read the best selling book: TOKENIZED TRILLIONS: https://amzn.to/3BA2TOv  Also check out: BLOCKCHAIN APPLIED: https://amzn.to/3oT6QKU Join our Discord Channel: https://discord.gg/EcvqQaNzsD Join our Telegram Group: https://t.me/+cTexh7QC3D9mNjdk Subscribe to our newsletter: https://decentralised.news/newsletter/

Transcript

00:00Welcome back to Decentralized News. We're back again. You know, we haven't been able to

00:07shoot too many videos. It's been a pretty busy week, but yeah, I've been at this conference

00:13and it's been keeping me busy, but I'm back at it again. So, you know, give us a like and a

00:19subscribe. Truly appreciate it. As always, don't forget to check out the links in the description.

00:26So what are we talking about today? I just wanted to touch on initial stake pool offerings

00:33and talk about Cardano's project MELD. Okay. A lot of people have been talking about Cardano.

00:40I was at this conference, people talking about Cardano and I just thought I'd do a video to

00:46just talk about MELD today. So this is one of the first ever projects pretty much to use

00:51the ISPO model of raising funds. It is defined as a very liberating way of raising funds for

01:01crypto projects in their explanatory blog on how it worked. They actually outlined how users would

01:09delegate their ADA tokens to the MELD staples and then will be able to earn rewards that way.

01:16So this would come in two types of rewards. One would be 100% ADA rewards and the second

01:23would be a split between 50% ADA rewards and 50% MELD rewards. And the project actually had already

01:33allocated about 800 million worth of MELD tokens to issue rewards to delegators. But before we talk about

01:43that, let's actually just define what MELD is all about. Let me see if I can bring you in on this

01:51sunset so we can vibe together. Right. So yeah, what is MELD? It is essentially just a non-custodial

02:01crypto bank that lets you as the user lend and borrow both crypto assets and real world fiat currencies and

02:10users also have the opportunity to earn yield on their MELD tokens through staking. So the project is

02:18based on Cardano, of course. The lending process is similar to other lending and borrowing pools in

02:24crypto. Users simply borrow crypto assets from the platform by providing a collateral. Then the lender

02:31in this case receives an interest rate for locking up their capital. MELD offers fiat lending on their

02:38platform as well. So how does an initial stake offering pool actually work? So now to understand

02:46ISPO, we must first understand how staking pools typically work. So staking pools are the simplest way

02:52of generating returns in crypto. If you don't get wrecked in the process, as we've seen with people

02:59that have been staking either, you know, staked ETH and even just normal tokens, especially in this time

03:07of crisis and people aren't able to withdraw their funds or, you know, projects go bust and, you know,

03:16people aren't able to ever retrieve the stake that they've put on those platforms. So, you know,

03:24crypto protocols that are following sort of our proof of stake consensus models rely on staking pools to

03:29ensure that propagation of their blockchain is done properly. This actually replaces miners who, obviously,

03:36in the case of proof of work are the people that are sort of responsible for making sure these

03:44transactions are validated. So in the case of MELD, the staking pools and the rewards that were issued to users

03:51for, or delegators in that case, will stake their capital in these staking pools, were utilized,

03:59and in essence that they would be differentiated or they would differentiate their utilization,

04:06in fact, of the ISPO's models with other common types of raising funds in the space by generating a

04:15way of no delegated funds in terms of nothing being collected by the ISPO. So to understand this,

04:26so MELD would act as an interface between the staking rewards that were generated from the

04:32staking pools and the rewards that were being issued out to delegators effectively, which would

04:37keep ADA rewards that were generated as part of the staking in return. They would issue then a

04:44proportional amount of the MELD tokens to users who were participating in the ISPO. So this meant that,

04:50you know, likely investors who wanted to invest in the project did not have to divert all of their

04:55capital into the project and risk it getting devalued and the risk of locking up the capital

05:01within the project was actually hedged by the project itself. So since they had absolutely no control,

05:10I mean they had absolute control of the actual assets themselves, users are then actually able to

05:15withdraw their capital whenever they want instead of just those situations that I just mentioned before.

05:22So in terms of sort of what makes an ISPO different from an ICO just to make it easy for people to

05:30understand, it is fundamentally of course different from an ICO in that it does not require potential

05:38investors to deposit the capital into a project and risk it getting rug pulled. On the contrary,

05:46actually you see users deposit the capital into staking pools and the project simply collects the

05:52rewards from the pool while issuing a proportional amount of the tokens that they give to users in

06:00return. So which makes things much more easier for the investors as well. And not only can they

06:06deposit and withdraw that capital anytime, they'll also have the freedom to pretty much participate

06:11in as many fundraising events as possible. And all that said and done, if the project that actually,

06:18let's say it does turn out well, then the investor can simply withdraw the assets from the staking pool

06:25and get all of it back. So what is the Meld staking pool? It is something that was launched back in 2021,

06:34I think in July, so about a year ago, and it ended on December 8th. And all of those who wanted to

06:41participate actually had the opportunity to delegate as much ADA they wanted to sort of, you know, get an

06:51opportunity to delegate it for however long that they wanted to. So since they were delegating their

06:58tokens to a staking pool, they would also unstake and withdraw anytime that they wanted to. So like I said,

07:04Meld 1 is a pool that actually consisted of the Meld token itself. And in short, users delegated their ADA

07:15in this pool and they were getting not only those rewards in Meld, but of course in ADA as well. And in

07:25Meld 2 pool, it was a 50% split between ADA and Meld. So yeah, that's pretty much what that ISPO

07:36is all about in terms of just understanding Meld. I just thought I'd give a short, quick, brief

07:43explainer because I met someone at this conference today who asked me about that.

07:47And yeah, I don't really own a lot of Cardano myself. I like things that are, you know, usable in

07:58terms of I like to get into projects only when they've kind of gone past the theoretical sort of

08:08level in terms of the delivery. So let me know if you're an ADA fan. And if you are one of these people

08:15that participated in these ISPOs or you staked your tokens through that, and don't forget to check out

08:24the links in the description to my books, Tokenized Trillions Blockchain Applied. If you want to learn

08:30more about real world asset tokenization on the blockchain. Also, you can check out Tokenized

08:37Trillions. We are pretty much focused on real world asset tokenization in terms of our equities and real

08:43estate. You can check that there. Go to proudlyassociated.com if you're interested in just

08:50ramping up your project and if you want to get connected or develop your market in Africa. Other

08:58than that, check out our Discord and our Telegram server. And don't forget to like, share, subscribe,

09:05turn on that notification bell, leave a comment. Also, let me know what are the topics you want me to touch

09:11on. I know I might sound a little tired today, but it's been a long week, people. And I'll be back

09:18back in my pad in a couple of days and I'll be able to churn out a lot more content and keep you guys

09:28up to speed with everything that's going on in terms of what is still being developed in the crypto

09:34markets. I know everybody's thinking crypto is dead right now, but everyone who's ever really done anything

09:41this space knows this is the time where you actually put your head down and really get to the work.

09:48So yeah, you know, let those that just come in for the quick thrill, you know, get out for now. We'll meet

09:57them when we start moving on the upside once again, which is bound to happen. This is just what happens

10:04with these cycles. And yeah, I'm here wishing you like success, peace and all of that good stuff,

10:11guys. Signing out from Remini, Italy. See you soon. Peace, y'all.

Initial Stake Pool Offering (ISPO) - MELD on Cardano Explained Simply

Category

Transcript

Be the first to comment

Recommended