Risk management is something fundamental in crypto, yet sometimes we don't take it as seriously as we should.
In @MELD_Defi's whitepaper, we see some insights from the team regarding this critical topic.
Let's take a look at how WE reduce your risks in this bear market 🐻
The MELD protocol includes its risk models within itself in order to participate in two major activities:
✅ Risk scoring to determine borrowing liquidation thresholds for an asset
✅ Market risk considering the collateral that backs up said asset and its price exposure
These two aspects of a token are constantly updated so MELD can remain safe for all users and everyone who trades is aware of any risk of any size.
Remember that no financial activity is 100% risk-safe. Not even storing your money under your couch! ⚠️
But that's why MELD integrates risk management functions - we do the math so you don't have to.
We go through the asset's data to calculate the risk rate and we put it in simple words for our user's better understanding.
When doing said calculations, we look for several parameters, such as:
⚠️ How old is the token?
⚠️ In which DEX does it trade?
⚠️ How liquid is it on each DEX?
⚠️ 24-hour trading volume
⚠️ 24-hour price fluctuation
⚠️ Are the tokens organically or artificially traded?
⚠️ How long does it take to trade the token?
⚠️ How many wallets hold this token? Are these wallets actual users?
⚠️ Token circulating supply.
By answering all these questions, we make sure the token is safe enough to be part of MELD's protocol and accessible through our market.
Learn more about @MELD_Defi by following them on X/Twitter and participating in their airdrop!
Will end soon.... so don't miss out. 👀
meld.com/meld-airdrop
αɾʂԋ9000 🔺
@Arsh0x1
@avax official ambassador | DeFi Researcher | #Avalanche ambassador for @MELD_Defi | Marketing Consultant at @BioFiGlobal 🧑🏻💻
