Why mefi?
An overview of mefi protocol.
mefi is an innovative protocol that provides incredible utility to the meme coin space. Specifically, it gives you, its user, the opportunity to make money without spending money. Why add fresh capital, dip into your ETH reserves or sell some of your long-term moon bag when you can simply use a portion of that moon bag as collateral to jump into a new high-risk, high-reward play?
Let's look at a simple example of how you can use mefi to make quick profits:
Your favorite CT influencer shills 'xyz' coin that just launched and currently sits at a $14k market cap.
You decide you want in, so you borrow 0.1 ETH against a portion of your $VOLT moon bag.
You invest that 0.1 ETH in the hyped token, which pumps to a $1.4 million market cap, or a 100x, 18 hours later.
You sell enough of the new token to repay the loaned 0.1 ETH plus interest (getting you your collateral back), leaving you with 9.9 ETH worth of the new token that you can either sell, HODL or a combo of both!
Will every new coin 100x in that time frame? Of course not — we’re not that naïve. But imagine how quickly your holdings will increase if you consistently hit 5–10x gains? A meme coin savant may see the protocol as almost an infinite money glitch...
The mefi protocol also saves you several steps - and money - when entering new plays. As an example, consider what you would normally have to do if you wanted to use some of your $GENBLOK profits to grab a bag of a newly-launched coin:
Sell $CULT, with tax and gas fees
Buy meme coin, with tax and gas fees
Sell meme coin, with tax and gas fees
Buy back $CULT, with tax and gas fees
With mefi, you cut out steps 1 and 4, essentially cutting your gas and other fees in half.
What mefi can’t cut out is the risk of investing in new meme coins. Let’s say the worst happens and you invest in a project that gets jeeted or rugs. In the situation above, you would lose however much of your long-term $CULT bag you sold to buy the new coin. With mefi, however, you are able to get ALL of your collateral back as long as the borrowed ETH is repaid within the time frame you selected. A good practice would be to never borrow more than you hold in your reserves.
While Aave paved the way for DeFi lending protocols, we will make mefi the premier lending protocol for the Alt/meme coin space.
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