Melon - an open source protocol. The platform allows anyone to customize the pooled asset system. They can also be managed online at a fraction of the cost of traditional funds. The resource automates support and intermediary functions, required in traditional finance, using smart contracts.
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How does Melon work?
Melon - a fully decentralized asset management protocol. It allows anyone to create, manage or invest in a digital asset fund in a safe manner. This allows asset managers to create their own custom investment instruments on Ethereum. This can be done in a matter of minutes and without financial intermediaries.
The Melon Protocol is a set of smart contracts, each of which performs specific functions of an investment fund:
- accounting;
- investment or repayment;
- storage of assets;
- trading;
- distribution of commissions.
All smart contracts set certain parameters for the fund. They prescribe the rules for risk management, management fees and performance.
This gives investors confidence that the pooled digital assets will be managed exactly as specified in the network investment setup. The service also allows investors to have a direct relationship with an investment fund, which is usually prohibited in the traditional world of asset management.
Features of using Melon
When using a project, the cost of creating a fund is several hundred dollars and takes several minutes. All assets remain in the ownership of the investors themselves and can be redeemed at any time. Transactions on the blockchain are almost instantaneous. The service dramatically reduces the ability of fund managers to act in a fraudulent or malicious manner. This allows investors to preserve their assets and enforce fund parameters on the blockchain, using smart contracts.
By automating so many ancillary and intermediary functions, Melon cuts the operating costs of managing the fund drastically, thereby allowing managers to pass those savings on to investors. Thus, the service team provides a platform for fund managers and investors. To enable them to operate in a safe, transparent, efficient and significantly less costly manner. Ultimately the end user will benefit from this.
Melon ecosystem overview
The protocol is based on Ethereum for decentralized asset management on the network. It is a protocol that allows you to manage your wealth and the wealth of others in a safe environment. This enables anyone to create, manage and invest in customized investment vehicles on the web.
Currently, two independent teams are working on the resource.
| Avantgarde Finance | The team proposed MFP # 2, which the Melon Council accepted in September 2019. With a three-year RoadMap, the developers plan to address existing issues for the Melon ecosystem. Avantgarde Finance provides cutting edge professional blockchain based financial instruments. Avantgarde's vision - to improve the day-to-day work of aspiring asset managers and their investors. |
| Midas Technologies | This is a Swiss company that develops Ash. Ash is an investment mobile app for retail investors that uses gameplay, based on the Melon protocol. |
The initial asset base consists of a set of ERC20 tokens. It is going to expand in the next few months. The MLN token is an “asset management gas”. It is calculated by multiplying the number of Ethereum gas units, consumed in this function by the gas price for asset management. The fees are in the ETH form and go to the Melon Engine smart contract, which then buys MLN tokens at a premium and burns them.
Additional information
In order for you to find out more detailed information about the project, check out the FAQ section on the official website. In addition, to stay up to date with the latest events, you can subscribe to the pages on the social networks Twitter and Telegram.