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the rise (OP)
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December 07, 2021, 09:44:26 AM |
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The Innovations______________________________________________Liquidity ExtensionThe Malt Protocol extends the liquidity pool using capital controlled by the protocol. This capital can be deployed by the protocol to ensure stability. Learn MoreRewardsRewards are paid in DAI instead of Malt. This can be thought of as the protocol realizing profit for you. Controlling profit taking at the protocol level is extremely powerful. Learn MoreArbitrage AuctionsThere are no debt expiring coupons. Instead Malt introduces arbitrage auctions. Think of it like a juiced up swing trade with a guaranteed limit execution at peg. Learn MoreThe Innovations______________________________________________  FAQWhat is Malt?
Malt is the new generation of algorithmic stablecoins. As a speculator you can make money by staking Malt liquidity provider tokens and earning yield or by purchasing arbitrage tokens in an auction when the price of Malt falls below peg.
Malt’s focus is building a system of incentives up from first principals. Instead of trying to stop or slow down speculator behaviour with arbitrary reward lockups or taxations, Malt puts the speculator first and makes it as easy as possible to speculate on the protocol while minimizing investor risk. By aligning the incentives of a speculator with the protocol itself, everyone can win.
What is liquidity extension?
Every liquidity pool in the Malt ecosystem gets its own stabilizer node. This stabilizer node is in charge of taking actions to keep price stable. This includes minting and selling Malt as well as triggering arbitrage auctions.
Liquidity extension is capital that is owned and controlled by a stabilizer node. It is capital that is actively used by the stabilizer node to help stabilize the price and lives outside of the main liquidity pool but will be automatically deployed in response to market changes. Where does the liquidity extension capital come from and what does the stabilizer node do with it?
When the price of Malt is above peg, the stabilizer node will mint Malt and sell it directly into the liquidity pool to drop the price. This sale generates profit, some of which is retained by the stabilizer node as liquidity extension and the rest is immediately distributed as rewards to bonded LPs.
The stabilizer node is continuously growing its liquidity extension in times of growing demand. When the price drops below peg the stabilizer node uses its liquidity extension to buy back and burn Malt to contract supply and therefore increase the price back to peg.
The amount of Malt purchased and burned is dynamic and will be influenced by distance from peg, amount of auction participation, and how frequently the price diverges from peg.
This usage of the liquidity extension to buy and burn Malt is how the protocol ensures a meaningful supply contraction when price falls below peg, even when accounting for premiums paid to auction participants.
Why does Malt pay rewards in DAI?
Most farmable stablecoins pay rewards in the protocol’s native token. The problem with this is speculators will then need to sell the tokens to realise profit. Those profit-taking flows are often beneficial because they bring the price back down to peg. Unfortunately, there are also times where that profit taking is undesirable and drives price below peg.
Malt understands that speculators are motivated by realising profits, so we decided to just control the profit taking flows at the protocol level and pay speculators in the token they desire anyway. Everyone wins - the protocol remains stable and the speculators get paid in the token they want.
Will Malt ever pay in anything other than DAI?
Yes! The rewards are paid in DAI right now because the only liquidity pool that we will support at launch is Malt/DAI.
In the future rewards for staking LP tokens will be paid in the “Other” token in a Malt/Other pairing. So you are free to choose which token to be paid in by providing liquidity to the pool with the token you want.
This naturally incentivizes more liquidity in the most desirable Malt trading pairs and greater liquidity leads to greater stability.
What are “Arbitrage Auctions”?
When the price of Malt in a particular liquidity pool falls below peg it will trigger an arbitrage auction for that pool. This is a Dutch-style auction that will start around $1 and will steadily drop over the course of 30 minutes. The auction ends as soon as either the time is up or a predetermined amount of money is pledged to the auction.
At any point anyone can pledge to the auction. Pledges are always in the “Other” token in the Malt/Other pool. In return for the money pledged the user will receive arbitrage tokens. Everyone who pledges to the auction will pay the same price regardless of when they bid - that price being whatever the price is when the auction ends. Because the price is always dropping you are guaranteed to get at least the price of the auction at the time you bid.
Each arbitrage token will automatically be redeemed for you by the protocol into the “Other” token at an equivalent value of $1 per token. This will happen when the pool’s stabilizer node has enough capital to cover the redemptions. The redemption happens automatically to avoid any issues with bots frontrunning the claiming of the tokens.
The tokens purchased in an arbitrage auction will never expire and will be redeemed in a first-in, first-out scheme (older auctions get covered before new ones, but each auction has tokens covered pro-rata; when 10% of tokens can be covered each user has 10% of their tokens redeemed).
Why do you call it an Arbitrage Auction?
You can think of the arbitrage auction like a swing trade back to peg where the trader gets an additional premium to incentivize the trade and the protocol will execute their exit when it reaches peg.
A typical arbitrage is a risk free trade that locks in a price discrepancy across exchanges or across correlated assets. The Malt auction is an arbitrage across time (the price is lower than its fair value peg price and should return to peg). But this is not risk free like a typical arbitrage opportunity as there is an opportunity cost of holding the arbitrage tokens until they are redeemed.
Malt allows the market to decide the premium for holding this risk. As the auction price drops, it creates a gap between the auction price and the market price of Malt. That difference represents a premium above simply buying Malt at market price and swing trading it back to peg. Taking such a swing trade also doesn’t guarantee a good exit at peg as bot-driven frontrunning risk exists.
The arbitrage auction allows buyers to take that swing trade back to peg with an additional premium and an exit fill at peg. designed by Disclaimer:
"The managers of this campaign and author of this post are not part of the entity. Bounty managers are providing their services for tracking and evaluating participants in the campaign for the purpose of reporting results to the projects core team. Therefore, you are joining the bounty at your own risk. Please do your own due diligence as past performance does not guarantee future results." |
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the rise (OP)
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December 07, 2021, 09:46:58 AM |
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Reserved
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the rise (OP)
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December 10, 2021, 08:03:13 PM |
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Starting tomorrow at 7pm UTC we will be doing a daily giveaway in our Discord. We will give away some DAI and whitelist spots every day for the next 3 weeks. Come hang out in discord for a chance to win https://discord.gg/malt |
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the rise (OP)
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December 15, 2021, 11:05:24 AM |
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We have just rolled out the new leveling system in the Malt discord.
Unlike many projects we will not require you to level to get a whitelist spot (that's just frustrating, right?).
I'm sure we can dream up some perks for people who level up though 👀
https://t.co/YEF6BsE29r |
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the rise (OP)
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December 16, 2021, 10:20:36 AM |
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 Hey all, we have an event that we'd like to announce-
The Malt team would like to invite everyone to come join us this Saturday, December 18th, for Malt's first Open Bar AMA Event!
We'll be opening the floor to our community to ask any questions about the protocol, favorite drinks, the crypto market, or whatever comes to mind (within reason)!"
We'll be kicking things off at 6PM UTC in the Malt discord voice channel, and we'd love to see you there! |
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xtradersoftwares
Newbie
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Activity: 11
Merit: 0
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December 16, 2021, 02:16:32 PM |
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Do you have a expected date to realise it?
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the rise (OP)
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December 16, 2021, 06:44:35 PM |
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Do you have a expected date to realise it?
wait, we will announce it and keep following the Malt Protocol, there will be many activities that will take place, don't forget to also join the discord or telegram community so you don't miss the latest Malt Protocol information |
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the rise (OP)
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January 02, 2022, 06:47:03 PM |
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⚠️ ATTENTION V1 USERS If you were part of V1 and are interested in participating in the V2 whitelist please go here and register your interest: https://t.co/DxmtQrbVNZWe are doing this so we have a better idea how much interest there is so we can better size allocations. |
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TimeTeller
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January 02, 2022, 09:24:52 PM |
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⚠️ ATTENTION V1 USERS If you were part of V1 and are interested in participating in the V2 whitelist please go here and register your interest: https://t.co/DxmtQrbVNZWe are doing this so we have a better idea how much interest there is so we can better size allocations. Most algo based stablecoins that were introduced in this forum haven't achieved success. Do you think your path will be different from them this time around? How are you going to ensure that your platform will at least achieve a different outcome? Based from your list of V1, are there many users who signed up at that stage? |
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the rise (OP)
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January 03, 2022, 04:24:17 PM |
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⚠️ ATTENTION V1 USERS If you were part of V1 and are interested in participating in the V2 whitelist please go here and register your interest: https://t.co/DxmtQrbVNZWe are doing this so we have a better idea how much interest there is so we can better size allocations. Most algo based stablecoins that were introduced in this forum haven't achieved success. Do you think your path will be different from them this time around? How are you going to ensure that your platform will at least achieve a different outcome? Based from your list of V1, are there many users who signed up at that stage? yes of course, you can join and discuss in the Malt Protocol telegram community we will be heading to V2 soon a lot of people can't wait for our launch thank you for your support |
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the rise (OP)
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January 25, 2022, 07:46:07 AM |
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diminizio
Full Member
Offline
Activity: 585
Merit: 100
Binance #SWGT and CERTIK Audited
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January 26, 2022, 10:46:36 AM |
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It's so cool. Now Malt V2 has entered the testnet. But what about v1 in the future? Will it continue or will it be abandoned due to the focus of malt v2?
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vanesha
Full Member
Offline
Activity: 649
Merit: 100
Binance #SWGT and CERTIK Audited
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January 26, 2022, 10:49:38 AM |
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We may need stable coins with better algorithms. I think malt V2 here is here to provide a solution from the previous stable coin. I hope the Malt network will be widely used as a stable coin that can overcome previous problems. I'm sure the Malt V2 is the next generation!
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the rise (OP)
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January 28, 2022, 06:30:22 PM |
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the rise (OP)
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January 31, 2022, 09:53:28 PM |
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For those who were not part of v1 or missed the registration deadline, we're not leaving you out there MALT-less!
Retweet this post with your favorite beverage (Malt or not!) and we'll be randomly selecting from the retweets for Malt v2 Whitelist Allocations!
https://twitter.com/MaltProtocol/status/1488232686162309122 |
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the rise (OP)
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February 09, 2022, 09:23:37 PM |
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Oh? What could this be?!
That's right Malt Fam- get ready, because soon we'll all be ready to REINVEST!
We'll be announcing the soft dates for our Testnet and Attack on Peg events by the end of this week- and from there, we'll be planning our Mainnet Launch MALTibration!
Official news
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the rise (OP)
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February 14, 2022, 01:45:10 AM |
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 Happy Sunday, Malters!
Testnet with the revised UX is coming THIS WEEK!
Also, we're running a Valentine's Day meme competition, until February 15th, 08:00 UTC!
Quote this tweet with your best Valentines Meme, and we'll pick the best 5 for stackable $1000 whitelist allocations!
official news |
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the rise (OP)
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February 23, 2022, 03:02:26 PM |
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 All, here's the latest from Malt's Testnet!
We're officially 24 hours in, and we've seen some incredible participation. These stats speak for themselves!
Grab yourself a cold drink after this hard work- you earned it, and Malt's just getting started!
#polygoncommunity #MaltFam https://t.co/9duFeqSVpe |
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the rise (OP)
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March 05, 2022, 10:19:13 PM |
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Hey Malt Fam! We wanted to share a quick update on the Malt Testnet since moments ago, we crossed over the 24-hour mark. Here's where we stand!
Malt Price: $1.009
TVL: $47,505,344
APR: 25,825% (Whoa!)
Implied Collateral: 95.37%
Those are definitely some very healthy numbers!
Taking a closer look at that 95.37% Implied Collateral, we now have over $12.2 Million in the Swing Trader, $3.2 Million in the Auction Pool, and $6.1 Million in the Reward Overflow. Combined, that means Malt's primary peg defenses have been charged up with over $21.5 Million!
Along with this, we've found some spots where we can make some improvements, worked through some testnet-specific speedbumps, and received an absolute treasure trove of feedback and suggestions from our community, which the team is excitedly digging into.
Thank you all so much for helping stress-test Malt!
https://discord.com/channels/802896744492433428/802928445867687936/945769535712149524 |
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