MELT Utility
(will be continuously updated as V2 evolves)
Similar to V1,
MELT underpins voting power in the Defrost governance. As a governance token, MELT is used by its holders to vote on changes to the parameters of Defrost V2.
MELT stakers are eligible for part of the protocol incomes. The protocol incomes are accumulated from the fees collected when users are making leverage trading and the Super Vaults are compounding rewards from interoperated protocols.
MELT will be mined as the incentive for providing liquidity to Super Vaults in Defrost V2. There will also be MELT incentives for users who make leverage trades, like fee reimbursement or discount. All incentives are paused at launch. The details of MELT's involvement in V2 have been discussed in great detail and MELT's utility in V2 is being taken seriously. We want to be sure our approach to MELT's involvement makes the most sense for both previous holders and this new model.
Last modified 8mo ago