Hello Folks,
We would like to share an update on a new initiative under consideration. The memecoin market has grown significantly, now exceeding $130B* in market capitalization with daily trading volumes over $18B*. These assets have attracted attention from both retail and large investors due to their volatility and strong community engagement.
To explore this market, we are considering listing memecoins in the lending market, starting with a pilot phase featuring Pepe! It was selected for its strong market traction and liquidity (TVL: $82.6M*, 24h volume: $10.8M* on Uniswap).
We recently consulted our investors to gather their thoughts on this initiative. Here are the results:
- Yes: 80%
- No: 10%
- Abstain: 10%
This outcome reflects significant support for moving forward with the initiative.
Why Memecoins?
Memecoins offer the potential to:
- Tap into a large, retail-driven $130B*+ market.
- Position Folks Finance as one of the first lending protocols to list these assets.
- Expand our offerings and attract a broader user base.
Risk Management Measures:
Considering the speculative and volatile nature of memecoins, we’ve implemented the following precautions:
- Collateral caps and low collateral factors to minimize exposure.
- High liquidation incentives to ensure timely action during price fluctuations.
- Ongoing market monitoring to maintain platform stability.
We value your feedback and invite you to share your thoughts on this approach. Do you support listing memecoins in the lending market?
Your input is critical in evaluating this opportunity. We look forward to hearing from you and appreciate your continued support!
*Data collected on December 12, 2024
