Meshswap is a unique autonomous finance protocol that provides various revenue generation opportunities such as Swap, Lend, Leverage farm, and Stake on a Polygon network that is not possible in traditional finance. Meshswap has a structure that combines the AMM (Automated Market Maker) DEX business model prevalent in the DeFi ecosystem with the uniqueness of Multichain Economy and autonomous MESH inflation distribution by MESH stakers. This structure enables a virtuous cycle in which the MESH community’s active engagement is the growth of MESH value, the growth of the entire protocol, and higher yields for ecosystem participants.

Meshswap protocol participants

  • Trader: By paying a fee to the Meshswap pool, Traders can instantly swap tokens. 50% of the swap transaction fee is used for MESH Buyback & Burn, and the remaining 50% is distributed to Liquidity providers and Pool voters as a reward. Token prices fluctuate during a trade according to the quantity (exchange ratio) of paired assets deposited in the farming pool.

  • Lender: Lenders can easily and safely earn interest and $MESH rewards by depositing their assets into lending pools in Meshswap. Through smart contracts, the deposited assets are automatically lent to leverage farmers in leverage farming pools and its lending interest is given to Lenders as a reward. Lenders are free to deposit or withdraw their assets anytime.

  • Liquidity provider: It refers to users who deposit a pair of two coins in a farming pool in exchange for yields and borrowers who borrow assets from the lending pool to take leverage in leverage farms to earn transaction fees and higher yields. As the deposited assets are used for transactions generated by users with diverse needs, liquidity pools with active trading volume will generate more rewards. Under this structure, liquidity providers continue to earn high returns.

  • Staker: Users who lock up MESH for a certain period in exchange for MESH rewards and Liquidity pool voting rights (vMESH). Stakers can vote on specific liquidity pools to allocate more $MESH rewards and receive more distributed transaction fees incurred in the voted pool. As Stakers are one of the most active contributors to the Meshswap ecosystem, they earn additional token airdrop rewards such as Drops and Ecopot, which are carried out by various token projects seeking interaction with the $MESH ecosystem.

Multichain token economy of Meshswap

Meshswap - The Autonomous Finance Protocol started with KLAYswap, the largest AMM DEX on the Klaytn chain. KLAYswap is a proven global protocol that has already distributed over $662 million (840 billion won) in rewards to the Klaytn chain ecosystem through successful operation (as of 2021). Meshswap is a new autonomous finance protocol in Polygon, which gives a pathway to build the multi-chain economy structure with Klaytn and the future chains.

Multichain token economy is not simply replicating the same protocol to multiple chains; it is a strategy to leverage abundant users and liquidity from KLAYswap, which has already entered a mature stage, in order to increase the chain dominance of new protocols (Meshswap) quickly. Each protocol connected by the Multichain token economy creates various reward opportunities through a token economic convergence based on a wide range of user pools and liquidity that transcends chains. In addition, through these rewards, the entire ecosystem is expanded by continuously distributing the rewards to crucial protocol users (Stakers and vMESH holders in the case of Meshswap).

New users acquisition and liquidity expansion

Meshswap quickly secures new users and liquidity by mutually influencing the liquidity of the Polygon network itself as well as native users and liquidity of various chains where the autonomous financial protocol is deployed.

Securing demand for new transactions and creating trading volumes

Various transaction demands arise in liquidity circulation between combined ecosystems and in various compensation acquisition opportunities provided by each ecosystem. Through this process, connected ecosystems have increased liquidity in terms of diversity and scale based on assets introduced from different chains, resulting in sufficient trading volume within the protocol by meeting the various transaction needs of users mentioned earlier.

Expanding the reward power of MESH tokens

The occurrence of high transaction volumes not only provides more pool transaction fee rewards to vMESH holders but also leads to the expansion of user communities that support MESH tokens by Buyback & Burn. This means the number of projects in Meshswap ecosystem that want to proliferate by taking additional rewards to vMESH holders through Drops or Ecopot will inevitably increase. Accordingly, MESH holders not only receive rewards from Meshswap but also acquire various existing Polygon Dapp tokens as rewards.

Expanding the use of MESH tokens

MESH, the governance token, and other chains are also used as a liquidity supply resource to obtain additional rewards by entering the ecosystem. This strategy positively affects the increase in token value by increasing the demand for governance tokens of protocol connected with Mesh together.

Interaction with multi-chain Dapp

The Defi ecosystem forms a money Lego system that creates new financial services on top of existing Defi products through free combinations of various open source-based protocols. This means that it is impossible for any Defi protocol to continue its operation alone, and the combination with other Dapps in the chain can strengthen its own growth as well as the financial infrastructure of the entire chain where the protocol operates. Through collaboration with Polygon's existing and new Yield Aggregators, Stable coins, and Lending protocols, Meshswap will be able to create new financial opportunities.

In addition, the integration with Orbit Bridge, a main cross-chain bridge with more than $700M in total value locked, enables the support of safe asset movement between heterogeneous chains and creates a stable trading environment where various types of assets such as XRP, can be utilized on DeFi protocols in Polygon ecosystem.

Meshswap is based on a multi-chain token economy that mutually takes leverage out token economy of other autonomous finance protocols (AMM DEX) deployed in heterogeneous chains. Through users' engagement in various reward acquisition opportunities, the trading demand arises over the liquidity circulation in Polygon mainnet, associated foundations (such as Klaytn, etc), and Dapps.

Meshswap awaits your participation.

In Meshswap, a complete on-chain instant swap protocol that offers an immediate token trading environment, users with a governance token MESH have the right to determine significant parameters of Meshswap's policies and directions for service improvement. And users receive amply rewards for their contribution to protocol growth such as transaction fees, MESH incentives, and token airdrops.

Last updated