DeFi Money Market (DMM), a protocol to construct pastime on any Ethereum-asset backed by true-world sources represented on-chain, this day announced the originate of mETH, an pastime-bearing token created by depositing ETH into the DMM Ecosystem. DMM will provide 6.25% p.a. on ether (ETH) deposits.
mETH tokens, bask in each and every assorted mTokens, are backed by pastime-producing true-world sources which within the origin encompass automobile equity loans. As ask rises, the DMM crew plans on rising the DMM Ecosystem to encompass a extra diverse array of sources in aviation, construction, true property, and further.
Shopper funds which would be deposited within the DMM Ecosystem are converted to fiat and odd to transparently resolve a basket of pastime-producing true-world sources. This job is within the origin being conducted by the DMM Foundation, however the long urge aim is for this to be managed by the DMM DAO.
Each the off-chain sources and past-time income generated from these sources target over-collateralization maintaining depositors.
“At originate, ETH deposited by users will stop within the mETH sparkling contract to produce determined there’s superb liquidity for particular person withdrawals in some unspecified time in the future of this starting up enhance phase. As the ETH liquidity within the mETH contract grows to a healthy amount, the DMM Foundation will then withdraw portions of the ETH deposited, up to the reserve ratio (at the moment plight at 50%), and expend these funds to be reimbursed for the preliminary ~$10,000,000 of true-world sources already bought and afterward to resolve extra true-world sources. We are able to deposit extra ETH into the sparkling contract as it accrues extra particular person deposits and grows in uncover pastime won. mETH earns ETH depositors a stable 6.25% APY which arrangement if you deposited 100 ETH this day, in 365 days you would money to your mETH tokens to withdraw 106.25 ETH.”
– The DeFi Money Market crew
Final week, Tim Draper as phase of Draper Goren Holm Ventures bought a stake in DeFi Money Market.