WTF is Mercurial Finance (MER)?
We’ve all gotten used to the slippage that takes place when swapping tokens on the various DEXes. Mercurial creates infrastructure for stable assets on solana stableswaps, and so much more. Mercurial solves that and more, but first, let’s zoom out.
Mercurial (token symbol: MER) is a DeFi's first, a platform of pools and vaults for stable swaps, powered by the Solana Blockchain. MER solves the problem of trading stable pairs on traditional automated market markers (AMMs). AMMs are the protocols in the DeFi ecosystem that allow digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. AMMs are how UNI, 1inch, SushiSwap and the rest of the emerging DEXs are able to do what they do.
The problem is that, up to this point, AMMs have high slippage (slippage is the difference between what one expects to pay and actually pays when making a swap). Capital is largely underutilized, since most of the assets are not needed for swaps most the time, as the userbase of these DEXs don't demand constant use of the pooled funds. In addition to high slippage, swapping fees are static, resulting in wasted fee opportunities for liquidity providers when the market demand is high.
So, how does Mercurial solve these problems? Well, the name should be a damn good clue - Mercurial is variable, changeable, and thus able to better flex with the volatile assets and market it operates on top of.
By creating low slippage swaps, MER introduces dynamic fee and capital allocation. Why is this important? Because it is a huge improvement when it comes to profit potential for those of us participating in liquidity pools. Furthermore, it also deepens the pool size. Let’s explore this a bit more...
Through MER’s dynamic fee structure, network fees are increased in periods of high volatility to increase liquidity pools profit and lowered during periods of low volatility to increase trading incentives. It’s a gamified way to manage and mitigate pool profits in highly volatile markets...like the one we’re in right now!
Dynamic fees are one layer of MER’s innovative network design, the next is their Dynamic Capital Allocation. The Dynamic Capital Allocation enables participants in the MER Network to deploy assets in the pools to yield generating opportunities across the entire Solana ecosystem.
Go try @gopartyparrot, the first synthetic protocol on @solana mainnet and mint some PAI.— Mercurial Finance (@MercurialFi) May 31, 2021
Currently they support USDC/T as collateral, but will be focused on unlocking the value of LP tokens as well. 🤑
We look forward to collaborating w Parrot to make stables great on Solana! https://t.co/kN2Cc3UWi0 pic.twitter.com/ekVwCvHepT
THE BIG PICTURE:
Mercurial aims to be the “one stop shop” for stable liquidity. If they should achieve this, they will be able to improve the diversity and liquidity for stable coins traded, transferred and swapped on Solana. This might seem trivial, but it is a major part of DeFi use cases.
MER is built on top of the Solana Blockchain because Ethereum is currently prohibitively expensive for vaults and pools. The wizardry that MER enables would be completely impractical on ETH’s current infrastructure. Solana boasts a 65,000 TPS and sub-second finality, which create an ecosystem where Mercurial’s vaults can execute complex order of transactions instantaneously at very little cost to the protocol. At the moment, it seems like everything that is being built on the Solana Blockchain has a ton of interest due to its natural advantages for DeFi applications.
WHO IS MERCURIAL FINANCE?
Mercurial is led by a team of experienced operators in the technology and blockchain space. From everything we know, they seem like a flat organization (always good when an organization’s espoused values and values in practice are aligned!), led by an international team with diverse talents. The MER team has deep technical chops, strong reputations, and loads of experience developing DeFi tools and systems.
Soing is the Lead. Soing was the founding engineer at Envoy (an a16z funded project, currently valued at $500M USD) and resident engineer at Expa. He is a graduate of Y-Combinator and holds a computer science degree from University of Illinois at Urbana-Champaign.
His co-lead is Ming. Ming is a strategic adviser to Instadapp, Blockfolio, Kyber Network. Ming was also a founding member of the WBTC and Handshake team.
Loi is a co-Founding Advisor. Loi might be familiar to you because he founded Kyber Network, was features as one of “Forbes 30 under 30”, and holds the impressive title of “Top 10 innovators under 35” for Asia Pacific by MIT Technology Review.
The head researcher for MER is Andrew. Like other members of the MER team, Andrew was instrumental in the development and launch of the Kyber Network. Additionally, he authored the DMM protocol. Andrew brings deep expertise in AMM and DeFi systems.
WHO’S BACKING MER?
MER is backed by institutional funders, such as Alameda Research, Solana Ecosystem Fund, OKEx, Huobi, with participation from founders of Coingecko, Nansen and Blockfolio. In late-May, MEr will have an IEO for the retail market.
HOW TO PARTICIPATE
FTX is hosting the MER IEO on May 21st. FTX is a growing player in the DeFi space, so it comes as no surprise that by tapping into the strong reputation and network of FTX, the MER token, built on Solana could be a big opportunity.
Disclaimer for The Arcane Bear
If you require any more information or have any questions about our site’s disclaimer, please feel free to contact us at our help desk firstname.lastname@example.org
Disclaimers for www.arcanebear.com
All the information on this website is published in good faith and for general information purpose only. www.arcanebear.com does not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information you find on this website (www.arcanebear.club), is strictly at your own risk. www.arcanebear.club will not be liable for any losses and/or damages in connection with the use of our website.
The information provided a The Arcane Bear and accompanying material is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.
The Arcane Bear does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, The Arcane Bear disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.
Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on the website or materials linked from the Web is at your own risk.
From our website, you can visit other websites by following hyperlinks to such external sites. While we strive to provide only quality links to useful and ethical websites, we have no control over the content and nature of these sites. These links to other websites do not imply a recommendation for all the content found on these sites. Site owners and content may change without notice and may occur before we have the opportunity to remove a link which may have gone ‘bad’.
Please be also aware that when you leave our website, other sites may have different privacy policies and terms which are beyond our control. Please be sure to check the Privacy Policies of these sites as well as their “Terms of Service” before engaging in any business or uploading any information.
By using our website, you hereby consent to our disclaimer and agree to its terms.
Should we update, amend or make any changes to this document, those changes will be prominently posted here.
Thank you, you have no become a part of the development of our new trading space together.
For this, we are extremely Grateful!
The Entire Bear Council
The information on this site is for educational purposes only and is not investment or financial advice. Please do your own research before making any investment decisions. None of the information on this website constitutes, or should be relied on as, a suggestion, offer, or other solicitation to engage in, or refrain from engaging in, any purchase, sale, or any other any investment-related activity with respect to any cryptocurrency or other transaction.
Cryptocurrency investments are volatile and high risk in nature.
Don't invest more than what you can afford to lose.
We are not paid to do any reviews, but we do take positions in projects that we believe are promising.
Arcane Bear makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this website or any sites linked to or from this website.
Terms and Conditions
PLEASE READ THESE TERMS AND CONDITIONS ("TERMS") CAREFULLY BEFORE USING THE SERVICES DESCRIBED HEREIN.
BY UTILIZING THE WEBSITE LOCATED AT www.arcanebear.com ("WEBSITE") AND PRODUCTS THEREIN, YOU ACKNOWLEDGE THAT YOU HAVE READ THESE TERMS AND CONDITIONS AND THAT YOU AGREE TO BE BOUND BY THEM. IF YOU DO NOT AGREE TO ALL OF THE TERMS AND CONDITIONS OF THIS AGREEMENT, YOU ARE NOT AN AUTHORIZED USER OF THESE SERVICES AND YOU SHOULD NOT USE THIS WEBSITE OR ITS PRODUCTS. ARCANE BEAR RESERVES THE RIGHT TO CHANGE, MODIFY, ADD OR REMOVE PORTIONS OF THESE TERMS AT ANY TIME FOR ANY REASON. WE SUGGEST THAT YOU REVIEW THESE TERMS PERIODICALLY FOR CHANGES. SUCH CHANGES SHALL BE EFFECTIVE IMMEDIATELY UPON POSTING. YOU ACKNOWLEDGE THAT BY ACCESSING OUR WEBSITE AFTER WE HAVE POSTED CHANGES TO THESE TERMS, YOU ARE AGREEING TO THE MODIFIED TERMS. THIS DISCLAIMER OR ANY OTHER DOCUMENT, PRODUCED AND SIGNED BY ARCANE BEAR, DOES NOT CONSTITUTE AN OFFER OR SOLICITATION TO SELL ANY SHARES OR SECURITIES OR THE PRODUCTS OFFERED THERETO. NONE OF THE INFORMATION OR ANALYSES PRESENTED ARE INTENDED TO FORM THE BASIS FOR ANY INVESTMENT DECISION, AND NO SPECIFIC RECOMMENDATIONS ARE INTENDED, AND ARCANE BEAR SERVICES AND THE WEBSITE ARE NOT, DO NOT OFFER AND SHALL NOT BE CONSTRUED AS INVESTMENT OR FINANCIAL PRODUCTS. ACCORDINGLY, ARCANE BEAR DOES NOT PROVIDE INVESTMENT ADVICE OR COUNSEL OR SOLICITATION FOR INVESTMENT IN ANY CRYPTOCURRENCY AND/OR SECURITY AND SHALL NOT BE CONSTRUED IN THAT WAY. ARCANE BEAR EXPRESSLY DISCLAIMS ANY AND ALL RESPONSIBILITY FOR ANY DIRECT OR CONSEQUENTIAL LOSS OR DAMAGE OF ANY KIND WHATSOEVER ARISING DIRECTLY OR INDIRECTLY FROM: (I) RELIANCE ON ANY INFORMATION PRODUCED BY ARCANE BEAR, (II) ANY ERROR, OMISSION OR INACCURACY IN ANY SUCH INFORMATION OR (III) ANY ACTION RESULTING THEREFROM, (IV) USAGE OR ACQUISITION OF PRODUCTS, AVAILABLE THROUGH THE WEBSITE.
Arcane Bear retains all right, title and interest in all of our intellectual property, including inventions, discoveries, processes, marks, methods, compositions, formulae, techniques, information and data, whether or not patentable, copyrightable or protectable in trademark, and any trademarks, copyrights or patents based thereon. You may not use any of our intellectual property for any reason, except with our express, prior, written consent.
All content included on the Website and associated products and services, such as, but not limited to, text, graphics, logos, and images is the property of Arcane Bear and protected by copyright, trademark and other laws that protect intellectual property and proprietary rights. You agree to observe and abide by all copyright and other proprietary notices, legends or other restrictions contained in any such content and will not make any changes thereto.
Access to the Website
The Arcane Bear Website is provided without warranty of any kind, either express or implied. We do not represent that the Website will be available 100% of the time to meet your needs. In case of interruptions we take all reasonable actions to provide you with access to the Website as soon as possible, but there are no guarantees that access will not be interrupted, or that there will be no delays, failures, errors, omissions or loss of transmitted information. We may suspend use of the Website at any time for maintenance.