{"id":373908,"date":"2021-11-29T18:00:00","date_gmt":"2021-11-29T15:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/melds-1b-ispo-highlights-emerging-use-cases-for-cardano-crypto-fundraising\/"},"modified":"2021-11-29T18:00:00","modified_gmt":"2021-11-29T15:00:00","slug":"melds-1b-ispo-highlights-emerging-use-cases-for-cardano-crypto-fundraising","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/melds-1b-ispo-highlights-emerging-use-cases-for-cardano-crypto-fundraising\/","title":{"rendered":"# MELD\u2019s $1B ISPO highlights emerging use cases for Cardano, crypto fundraising"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d81adb8d29\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d81adb8d29\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/melds-1b-ispo-highlights-emerging-use-cases-for-cardano-crypto-fundraising\/#ISPO_An_overview\" >ISPO: An overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/melds-1b-ispo-highlights-emerging-use-cases-for-cardano-crypto-fundraising\/#Why_Cardano\" >Why Cardano?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/melds-1b-ispo-highlights-emerging-use-cases-for-cardano-crypto-fundraising\/#Achieving_financial_efficiency\" >Achieving financial efficiency<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># MELD\u2019s $1B ISPO highlights emerging use cases for Cardano, crypto fundraising <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>DeFi banking protocol MELD recently made headlines for attracting more than $1 billion worth of staked Cardano (ADA) to its protocol through a novel funding mechanism called an initial stake pool offering, or ISPO, marking an important innovation in how early adopters support blockchain startups. Cointelegraph had the opportunity to connect with MELD CEO Ken Olling to discuss the significance of the ISPO as well as Cardano\u2019s role in facilitating widescale participation in the stake pools.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ISPO_An_overview\"><\/span>ISPO: An overview<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The ISPO is a novel way for investors and other early adopters to support a project by delegating cryptocurrency to public stake pools in exchange for the project\u2019s tokens. MELD is currently the only known project to employ an ISPO even though the concept had been previously proposed elsewhere.\u00a0<\/p>\n<p>The MELD ISPO, which was initiated on July 1, allowed Cardano holders to stake their ADA for any duration and quantity in exchange for MELD tokens. The first stake pool was filled within 24 hours after roughly $100 million worth of ADA was contributed. Within five days, four stake pools equivalent to nearly $200 million\u00a0were filled.<\/p>\n<p>MELD stopped accepting new delegations on Oct. 27. By that time, nearly 620 million ADA had been staked for a cumulative value of over $1 billion. All said, the ISPO had over 40,000 participants. MELD also raked in $10 million in revenue. <\/p>\n<p>The ISPO was a significant departure from previous crypto funding initiatives, most <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/3tscapital.com\/wp-content\/uploads\/2017\/12\/ICO-Funding-Report-2017.pdf\">notably<\/a> the initial coin offering (ICO) and security token offering (STO), and was a nod to Cardano\u2019s growing ecosystem. It also highlighted pent-up demand in the market for DeFi projects, which continue to pique investors\u2019 interest. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/16fa257e-2ede-46a8-a0ba-2179d4959540.png\"><figcaption style=\"text-align: center;\"><em>Blockchain projects raised billions of dollars in funding in 2017 and 2018 before regulatory crackdowns and a brutal crypto bear market put an end to the mania. Source: 3TS Capital<\/em><\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Why_Cardano\"><\/span>Why Cardano?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Of all the proof-of-stake (PoS) chains in existence, MELD selected Cardano for its ISPO for its lower transaction costs, attractive staking mechanism and overall architecture, according to CEO Ken Olling. During MELD\u2019s initial development phase in mid-2020, Cardano was perceived to be the best option considering the circumstances surrounding Ethereum (ETH) at the time. <\/p>\n<p>\u201cThere aren\u2019t any more established blockchains,\u201d Olling told Cointelegraph, adding: <\/p>\n<blockquote><p>\u201cOne of our requirements was a modern PoS blockchain. The only real option at the time was Cardano. You have Solana, which has a two-tiered, much more complex staking mechanic in regards to the blockchain. It also operates legally in a different way. And then you have other PoS blockchains, but none of them really provided the full picture or the full package.\u201d<\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>How Solana and Cardano are paving new avenues for NFT growth<\/em><\/strong><\/p>\n<p>Olling said his firm is still \u201cvery bullish\u201d about Cardano\u2019s future despite its recent struggles. ADA&#8217;s performance has lagged considerably in recent months after being one of the crypto market&#8217;s hottest performers through September.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Achieving_financial_efficiency\"><\/span>Achieving financial efficiency<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>At its core, MELD offers non-custodial banking services, enabling users to lend and borrow with both crypto and fiat currencies as well as stake their MELD tokens for interest. Lenders can deposit both cryptocurrency and fiat currency on the platform. Borrowers have the ability to borrow in both types of assets after posting their crypto as collateral.\u00a0<\/p>\n<p>The crypto collateral option is attractive for investors because it means they can borrow fiat to meet their expenses without having to sell their digital assets and thus incur a capital gains penalty. (Capital gains taxes are a source of consternation for cryptocurrency investors, with large bag holders always looking for ways to use their newfound wealth in the most efficient way possible.)<\/p>\n<p>When asked about what differentiates MELD from other <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=cDyq4ewsrSE\">crypto lending<\/a> and borrowing platforms, Olling identified two factors: first, \u201con the highest level, we offer transparency,\u201d he said. \u201cIt\u2019s on the blockchain, so what h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens with funds on the protocol is completely open-sourced, unlike centralized crypto lending and borrowing services.\u201d<\/p>\n<p>Secondly, and on a more practical level, MELD offers \u201cusers fiat currencies for their crypto-backed loans, whereas other [&#8230;] DeFi competitors can only offer other cryptocurrencies.\u201d <\/p>\n<p><iframe loading=\"lazy\" title=\"Crypto Lending: The Ultimate Killer App? | Cointelegraph Report\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/cDyq4ewsrSE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong><em>Related: DeFi can be 100 times larger than today in 5 years<\/em><\/strong><\/p>\n<p>Cryptocurrency lending has emerged as one of the biggest use cases within DeFi, with the likes of Aave and Compound achieving over $14 billion and $11 billion in total value locked (TVL), respectively. More than two-dozen other protocols have <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defillama.com\/protocols\/lending\">achieved<\/a> a TVL of at least $100 million, according to industry data.\u00a0<\/p>\n<p>Although the emergence of DeFi has presented a sort of threat to the traditional financial system, the industry&#8217;s growth has been largely driven by users who already have access to legacy banking systems. That appears to be slowly changing as crypto entrepreneurs target the globe&#8217;s vast unbanked and underbanked populations in pursuit of financial inclusion. According to Olling, financial inclusion is a by-product of a more efficient financial system that is made possible through DeFi.\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/meld-s-1b-ispo-highlights-emerging-use-cases-for-cardano-crypto-fundraising\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# MELD\u2019s $1B ISPO highlights emerging use cases for Cardano, crypto fundraising &#8221; DeFi banking protocol MELD recently made headlines for attracting more than $1 billion worth of staked Cardano (ADA) to its protocol through a novel funding mechanism called an initial stake pool offering, or ISPO, marking an important innovation in how early adopters&#8230;<\/p>\n","protected":false},"author":1,"featured_media":373911,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTEvZTZlZWUyMmUtNWYxYi00MTJkLTllOTctOTBjODQzNDRiN2NkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75378,74868,75719,75036,74876,74906],"class_list":["post-373908","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cardano","tag-defi","tag-funding","tag-ico","tag-proof-of-stake","tag-sto"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/373908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=373908"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/373908\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/373911"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=373908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=373908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=373908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}