Why MelonFarm

MelonFarm is designed from first principles to issue capital-efficient, decentralized stablecoins that are accessible to anyone with an internet connection.

Today’s predominant stablecoins suffer from one or more fundamental issues, primarily centralization and scalable.

Fully Decentralization

Stable-value assets are an essential building block for blockchain applications and have grown to represent hundreds of billions of dollars in value.

However, the vast majority of this value is in the form of fiat-collateralized stablecoins like Tether and USDC. The businesses that issue these stablecoins are subject to external oversight and governmental coercion and have the unilateral power to freeze their stablecoins.

Decentralized stablecoins like DAI and LUSD make up only a small portion of the total stablecoin supply, meaning the vast majority of stablecoins are centralized.

MelonFarm, on the other hand, is operated by immutable smart contracts and uses an on-chain price oracle to determine the price of a dollar. MelonFarm is highly resistant to censorship by design such that anyone, anywhere can access low-volatility assets in a fully permissionless manner, ensuring that the protocol remains fully decentralized.

Elastic Supply

A scalable stablecoin should tend to the demand of the market. It should be able to expand supply when the market demand goes high, and also reduce its supply when the market demand goes low.

MelonFarm was designed to serve exactly this idea of the market. When the market needs more stablecoins, MelonFarm can be able to expand Melon's supply by minting new Melons. On the opposite, MelonFarm has mechanisms that can be able to burn existing Melons from the markets to reduce its supply.

The Ultrasound Money

Ethereum blockchain has the biggest DeFi ecosystem that includes many scalable layer-2 blockchains, thousands of DeFi applications, and billions in market valuation.

Additionally, since "The Merge" and the upgrade of EIP-1559, Ethereum blockchain has switched to "Proof-of-Stake" and become a deflationary asset.

MelonFarm was designed to grow alongside with Ethereum ecosystem. MelonFarm aims to build an elastic stablecoin that will be the base layer asset and liquidity for DeFi applications and is backed by the deflationary asset - Ethereum native token (ETH).