Summary
This publication provides an overview of the decision to list GOLD and SILVER (Meld Gold & Meld Silver) on Folks Finance.
Abstract
GOLD is a digital asset that is backed by 1g of fine gold held in the Meld ecosystem. Gold can be redeemed and digitised with any participating dealer that makes up the ever expanding network.
SILVER is a digital asset that is backed by 1g of fine silver held in the Meld ecosystem. Silver can be redeemed and digitised with any participating dealer that makes up the ever expanding network.
Meld Website: Meld Gold | Token
Motivation
The introduction of GOLD and SILVER to Folks Finance underscores several strategic angles:
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Capital Influx: The inclusion of GOLD and SILVER will bring external liquidity to the Folks Finance protocol. This could significantly increase the Total Value Locked (TVL) in the Folks Finance protocol.
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Asset Diversification: Adding GOLD and SILVER enhances the diversity of assets available on Folks Finance. Users will be afforded greater flexibility in their choices, from a simple holding to more intricate strategies, potentially intertwining GOLD and SILVER with other assets in the Folks Finance ecosystem. Liquidity providers could unlock novel opportunities and products by leveraging GOLD and SILVER. The community also expressed a great interest in having GOLD and SILVER in the lending market, given the growing interest in the RWA market
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RWA approach: At Folks Finance, we believe the RWA market will be a major player in the next cycle and this demonstrates our initial approach to it. This listing could lead to attracting key LP investors to the Folks Finance ecosystem.
NOTE: Lending pools GOLD/ALGO and SILVER/ALGO will be created. Farming rewards will be allocated on top of them.
Specification
Ticker: GOLD (MELD GOLD)
ASA ID: 246516580
| Parameter | Value |
|---|---|
| Collateral Factor | 60% |
| Borrow Factor | 100% |
| Liquidation Max | 50% |
| Liquidation Bonus | 8% |
| Liquidation Fee | 10% |
| Collateral Cap ($) | 70.000 |
| Variable Base Rate (RV0) | 1.75% |
| Variable Slope 1 Rate (RV1) | 5% |
| Variable Slope 2 Rate (RV2) | 100% |
| Stable Additional Base Rate (RS0) | 2% |
| Stable Slope 1 Rate (RS1) | 2% |
| Stable Slope 2 Rate (RS2) | 100% |
| Stable Excess Rate (RS3) | 25% |
| Optimal Utilisation Ratio (Uopt) | 60% |
| Optimal Stable to Total Debt Ratio (Oratio) | 20% |
| Rebalance Up Utilisation Ratio (URU) | 90% |
| Rebalance Up Deposit Interest Rate Percentage (DIRRU) | 55% |
| Rebalance Down Delta (RD) | 20% |
| Retention Rate (RR) | 10% |
| Flash Loan Fee | 0.1% |
| Borrow Cap ($) | 70.000 |
| Single Stable Borrow Percentage Cap | 6.2% |
Specification
Ticker: SILVER (MELD SILVER)
ASA ID: 246519683
| Parameter | Value |
|---|---|
| Collateral Factor | 60% |
| Borrow Factor | 100% |
| Liquidation Max | 50% |
| Liquidation Bonus | 8% |
| Liquidation Fee | 10% |
| Collateral Cap ($) | 70.000 |
| Variable Base Rate (RV0) | 1.75% |
| Variable Slope 1 Rate (RV1) | 5% |
| Variable Slope 2 Rate (RV2) | 100% |
| Stable Additional Base Rate (RS0) | 2% |
| Stable Slope 1 Rate (RS1) | 2% |
| Stable Slope 2 Rate (RS2) | 100% |
| Stable Excess Rate (RS3) | 25% |
| Optimal Utilisation Ratio (Uopt) | 60% |
| Optimal Stable to Total Debt Ratio (Oratio) | 20% |
| Rebalance Up Utilisation Ratio (URU) | 90% |
| Rebalance Up Deposit Interest Rate Percentage (DIRRU) | 55% |
| Rebalance Down Delta (RD) | 20% |
| Retention Rate (RR) | 10% |
| Flash Loan Fee | 0.1% |
| Borrow Cap ($) | 70.000 |
| Single Stable Borrow Percentage Cap | 6.2% |