Proposal: Add MET as collateral asset on CREAM Ethereum

Summary:

Add $MET to the CREAM Finance Ethereum lending market as a supported collateral asset.

Contract: 0xa3d58c4e56fedcae3a7c43a725aee9a71f0ece4e

For

Add MET as collateral to CREAM Finance lending app.

Against

No Change Required.

Background

Launched in 2018, Metronome is known as the world’s first autonomous cryptocurrency. Metronome’s autonomous monetary policy has translated to over $50 million in permanently locked liquidity in its proprietary AMM (which predates Uniswap significantly).

The token offers additional nuanced features like cross-chain support (chain hops), masspay, and subscriptions. Metronome is designed as a new “smart currency” DeFi primitive.

Motivation

Due to the nature of its monetary policy and significant value permanently locked as liquidity, Metronome is a safe collateral token. The floor price of MET (meaning, if every single token holder sold 100% of their MET) is about $1.40 (current price = $3.68). (Calculations made using the CORE floor formula.)

It is impossible for MET to be liquidated at low collateral ratios. But beyond that, this price floor is an extreme, and more broadly reflects that MET is a highly liquid, quasi-stablecoin that makes sense as a better collateral. Token holders of MET are interested in its future as a DeFi currency and are enthusiastic about utilizing it across third-party DeFi platforms.

Specification

The proposal will be pushed to Snapshot voting on April 22nd and run for a duration of 4 days.

Voting is now live: Snapshot

In full transparency, we have asked the larger Vesper community to please consider voting for this proposal also, because a CREAM listing enables a Vesper MET pool to be created with Vesper’s modular “Direct-to-CREAM” yield strategy.