Liquid Staking & Loan

Learn more about how music will pioneer the use cases of tokenizing real world assets

Recently, the interest for real world assets (abbreivated as 'RWA') in the blockchain space is emerging. Users are finding for cases where blockchain is practically implemented for the better use of the technology while providing benefits for the users. For instance, there are cases of tokenizing a real estate, luxury goods, or art to use for collateral. However, there are limitations for such commodities due to a potential lack of demand in case of liquidation. Music, however, is a high-yielding asset (yielding average return between 10~15%) that is recognized in the traditional financial markets as an asset.

Decentralizing Loans through Liquid Staking & Financing

Instead of resorting to traditional institutions for loans, artists seeking for financing can utilize MeMusic's DeFi services starting in Q1~Q2 of 2024. After a screening process of verifying the underlying asset for collateral, a decentralised voting process will take place to list the asset in MeMusic's liquid market. To a process similar to providing liquidity for liquidity pools on DEXes, users will stake stable assets (i.e., USDC, USDT) to create a liquidity pool.

Governance

As liquidity pools are created by the individuals, the listing process also must be also done by the individuals. MeMusic as a platform will however first screen the applications by verifying the legalities of processing the loan. For instance, we will verify the copyright ownership and royalty collections prior to allowing the governance process to take place.

Voting

By passing the minimum threshold of votes, the asset can be listed on the liquid market as an open pool. Users then can stake their stable assets on the liquid pool and start accruing stable yields in a stable coin of their selection.

LP-Pooling

Liquidity pooling will take place in phases with a priority for MeMusic token holders. After the first phase of pooling, opportunities will be passed onto the Node Holders' and their communities in a respective order.

Check this page for further information on Node Holders and their communities.

Earnings

The liqudity pool's capacity may amount to $50,000, $100,000 or any amount algorithmically set based on the underlying asset's value. LP providers will take their share of returns based on the amount staked into the pool.

Fee Breakdown

For each, loan processed there will be a platform fee applied.