Malt Protocol (MALT)

Basics

• Started in / Announced on: 28-1-2021
• Based in:
• Mainnet release: "It is currently in active development and is due to launch sometime over the next month." (28-1-2021). Launched their stablecoin on 15-6-2021.
• An algorithmic stablecoin.

Technology

• Whitepaper can be found [insert here].
• Code can be viewed [insert here].
• Built on: Polygon

How it works

• From The Defiant (15-6-2021):

"Malt Protocol aims to create a ‘capital-efficient token that can be pegged to any value, initially $1’, by drawing on design elements from  other algorithmic stablecoins that came before it:

1. Uncollateralized like ESD and Basis Cash.
2. Liquidity Extension (LE) is Malt’s version of Protocol Controlled Value (PCV), a concept pioneered by FEI protocol. It is funded by 20% of expansion profits. These funds are intended to be used to support the price of MALT (the stablecoin) during contractions.
3. During supply expansions, MALT is minted and sold for DAI, which in turn is rewarded to those providing liquidity for trading between MALT and DAI (liquidity providers, or ‘LPs’). Issuing rewards in DAI instead of the native token is expected to attenuate selling pressure on MALT.
4. Instead of fixed-rate coupons/bonds, Malt uses ‘Arbitrage Auctions’ in which DAI can be pledged for ‘arb tokens’ that can be redeemed at a premium upon a return to peg."

Roadmap

• Can be found [Insert link here].

Audits

• Bug bounty program can be found [insert here].

Bugs/Exploits

• From The Defiant (15-6-2021):

"Sure enough, within 24 hours Malt Protocol was sporting more than $50M in Total Value Locked. Early users pocketed outsized gains as the supply of MALT, the stablecoin itself, rapidly expanded. That’s when it all started going wrong… As fresh capital flowed into MALT and pushed its price above $1, the protocol’s ‘Stabilizer’ proceeded to mint MALT and sell it for DAI as planned. LPs who entered at launch received an eye-popping 500,000% APR. This means that for every 100 MALT minted and sold, 5 DAI would go to the user who called the contract. While this may have made sense on Ethereum where gas fees are significant, nearly-free transactions on Polygon made it a ripe target for enterprising bot masters. The team subsequently reduced the Stabilizer rewards, but the protocol ran into trouble when inflows stopped and a wave of heavy selling pushed MALT down to $0.40. The first series of arbitrage auctions, coupled with market buys of MALT from the liquidity extension, managed to push MALT back up to $0.985. But the damage had been done. Liquidity providers who were able to withdraw their funds quickly sold their MALT, and the protocol was unable to recover."

Team, Funding, Partnerships, etc.

Team

• Full team can be found [here].

(:

Knowledge empowers us all and will help us get closer to the decentralised world we all want to live in!

Making these free wiki pages is fun but takes a lot of effort and time.

If you have enjoyed reading, tips are appreciated :) This will help us to keep expanding this archive of information.

ETH tip address: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31

Also check out CoinTr.ee for more content.