MELDing With Interoperability

MELDing With Interoperability

Josh Noriega

Josh Noriega

MELD Ambassador

March 15, 2022

Interoperability is highly underrated. It might be that the word is too technical of a term to be proliferated by the masses as we’ve seen with terms like DeFi, Metaverse, and NFTs. However, the concept is quite simple and extraordinarily powerful. Enabling the ability for separate financial ecosystems to interact with one another is exactly the idea that inspired globalization with international trade in the 16th century. It is expected to have the same impact. 

MELDed Assets

The first building block of enabling different ecosystems to interact with one another is the creation of wrapped assets. The concept that the value of an asset could be moved from its ecosystem into a foreign ecosystem is a far more powerful idea than it is credited. While it is unlikely that anyone reading this needs to be convinced of the innovative work of art that smart contracts are, it deserves a passing mention that “programmable money” defies what we previously thought capabilities of finance. MELDed assets enable users of an innovative landscape to deploy their assets into the MELD ecosystem where they can experience a whole new set of functionality. 

MELDing assets unlocks the capabilities of the biggest cryptocurrency assets on the market. On its native blockchain, all the top cryptocurrencies have a designed utility that serves its intended function. The ability to translate those assets to what was once a separate ecosystem transcends what we understand blockchain technology to be and expands how we imagine the future of cryptocurrency. 

Gateways & Advantages

Given the recent developments of MELD managing to accumulate half of the entire Cardano TVL at the close of MELD’s 12-month staking option, the anticipated demand and usage of the MELD protocol seems to be extraordinarily high. In order to fulfill this demand as a lending & borrowing protocol, access to liquidity from a variety of sources will be of the utmost importance. The brilliance of partnerships that enable interoperable bridges like ADAmatic and Nervos Force Bridge is that MELD will have access to liquidity far greater than what would otherwise be available anywhere else in the Cardano ecosystem. 

There are a plethora of advantages that come along with the utilization of multiple bridges to the MELD protocol. Multi-network liquidity offers users more options for financial tools, more gateways into the protocol, and a greater capacity to interact with other financial ecosystems. In the future of cryptocurrency, the seamless interconnectivity of different blockchains will outlast isolated ones because the financial tools created by the collective minds of innovative pioneers will almost always outthink the individual. 

Composability 

The integration of wrapped assets has accelerated the evolution of decentralized finance. The beauty of this phenomenon is that it is directly representative of human potential and innovation. To take the financial products created by blockchain pioneers and translate them in such a way that enables brand new capabilities is what is known as composability. It is a term of art that displays human capability when an idea is allowed to be openly interacted with and built upon. 

MELD has clearly demonstrated a capacity to think creatively and build on innovations that came before it. For example, the ability to lend your Ethereum in liquidity pools is nothing new. However, the addition of an insurance protocol designed to protect lenders against impermanent loss is a welcome advancement. 


MELD will be the only accessible decentralized product that will allow you to borrow fiat against your collateralized crypto. That competitive element coupled with the accessibility that is enabled by interoperability is powerful. MELD has a bright future ahead of it simply because it provides creative solutions that are open to the greater cryptocurrency community. 

The Future

While it’s relatively widely accepted that BTC, ETH, BNB, and ADA are reliable long-term picks, there is an unlimited number of possibilities for enabling interoperability. Already we’re seeing MELD plan to expand the options for wrapped assets following the partnership with Enegra. Plus, the rate at which governments and companies have been gearing up to integrate blockchain technology is pointing to a propitious future. Given the innovative mindset and behavior of MELD up to this point, you can bet MELD will constantly be thinking up new ways to collateralize blockchain-based assets wherever they will exist.

Disclaimer

The opinions shared within this article are those solely of the MELD Ambassador. Note that the content within should not be considered financial, legal, or tax advice. Neither the author nor MELD Labs PTE Ltd. are financial, legal or tax advisors. None of this content should be used to make any form of financial, tax, or legal decisions. Do your own research and consult professionals as needed for official policies, restrictions, and requirements in your jurisdiction.

If you believe in the MELD vision, want to support this initiative, and want to help promote the future of finance then we want you to join the MELD Ambassador Program!

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