Liquidity Growth for Ecosystems
Meridian provides network foundations with an easy solution to boost liquidity and TVL on their networks.
Last updated
Meridian provides network foundations with an easy solution to boost liquidity and TVL on their networks.
Last updated
In today's web3 landscape, ecosystems and networks are frequently evaluated based on their Total Value Locked (TVL) and the liquidity of their on-chain markets. Strong liquidity can attract whales, major liquidity providers, investors, and institutional interest.
Boosting liquidity, however, can be challenging on a limited budget, especially without depleting stablecoin reserves or impacting the value of the native token.
Meridian offers a solution by centering its liquidity growth strategy around the USDM stablecoin, which is minted using the native token as collateral. This approach creates a suite of complementary products and utilities that encourage the minting of more USDM, thereby reducing the circulating supply of the native token available for sale.
Potential use-cases for USDM may include:
Deploy USDM/X liquidity pools. It is cheaper to open native token and USDM liquidity pools, as they can minted against the native token collateral.
Use USDM as collateral or debt on Meridian Lend or other lending markets
Use USDM as colletoral on leverage trading platform, such as Meridian Trade.
Use USDM as a stablecoin on other protocols, such a prediction markets.
Earning liquidity provider fees from pairs contains USDM.
Pay with USDM for incentives on the ecosystem, salaries and more.
In this graph, using Telos as an example, it shows the cumulative USDM redemptions denominated in TLOS. While it's difficult to gauge how much of these redemptions contributed to sell pressure on TLOS, the chart suggests that TLOS price appears largely unaffected by the redemption volumes. This is a great sign for foundations looking to use USDM to pay for incentives, salaries, bribes and overall utility on the ecosystem, rather then using their native token. Read more about using USDM by the foundations here:
Foundations can use the following to calculate the effectiveness of using USDM instead of their native token:
Foundations may to integrate Meridian infrastructure.
