Keom Isolated Markets for STONE and USDM are Now Live on Manta Pacific

TL;DR:

• Keom’s newly launched Isolated Markets allow for rapid integration of emerging assets with minimized systemic risk.
• The following Keom Isolated Markets are live: ETH-STONE and USDT-USDC-wUSDM
• Users benefit from new and higher yield opportunities and additional rewards.
• Fast market deployment grants first-mover advantages in collateral and leverage.
• Stay tuned for details on rewards!

👉 Click here to start earning on Keom’s Isolated Lending Markets

Keom’s Lending Markets

The launch of Isolated Markets will now allow for rapid integration of emerging assets with Keom Protocol without exposing the pre-existing Cross-Collateral Keom Lending Markets which will remain reserved for blue-chip tokens.

Cross-Collateral Lending Market

The Cross-Collateral Lending Market in Keom allows various assets to be supplied into a single pool. This unified liquidity market simplifies risk management and monitoring. The Pool’s uniform mechanism for asset pricing, interest rate calculation, and collateral value assessment reduces complexity. However, it’s important to consider the interdependence and diversity of asset risk profiles. Therefore, Keom’s Cross-Collateral Markets includes only well-established, high-quality assets.

NEW Isolated Lending Markets

Contrastingly, each Isolated Lending Market operates independently, handling specific asset pairs like ETH-STONE or USDC-wUSDM. This independence means events in one market do not affect others. While sharing technical features with Cross-Collateral Markets, Isolated Markets allow higher collateral ratios but lead to fragmented liquidity. These new pools enable strategies such as depositing yield-bearing assets, borrowing stablecoins, and redepositing to enhance yield while maintaining a price-neutral position, assuming the peg of wUSDM and USDC remains stable. Additionally, they provide clear interest rate visibility, promoting responsible borrowing within the ecosystem.

Learn more in Keom’s docs here

Isolated Markets are a great fit for yield-bearing tokens and the two inaugural ones are USDM and STONE

Intro to USDM

With over $100M in issuance, USDM is now the leading yield-bearing USD product in the market.

USDM is a rebasing ERC20 token, issued by Mountain Protocol that operates natively in the Ethereum and Polygon blockchains.

The token accrues rewards for holders of USDM per its terms and conditions. USDM can be redeemed at a fixed $1 value by any holder having an account with Mountain Protocol.

It is designed as an institutional-grade stablecoin fully backed by short-term US Treasuries (T-Bills), held under custody with JPMorgan, and managed by an independent registered investment manager.

USDM is issued under the Bermuda Digital Asset Business Act 2018 by a company holding a Class M license to issue, sell, or redeem virtual coins, tokens, or any other form of digital asset and to provide custodial wallet services.

Please check out details about USDM on the official website as well as on their blog.

Users should always do their own research before experimenting with new assets, including when these are presented as issued in compliance with regulations.

Caveat: USDM is subject to country restrictions. In line with regulatory requirements, the project website and the USDM token is not accessible by individuals or businesses from the United States, Cuba, Iran, North Korea, Russia, Syria, regions in Ukraine (Crimea, Donetsk and Luhansk), Balkans, Belarus, Burma (Myanmar), Central African Republic, Democratic Rep of Congo, Ethiopia, Hong Kong, Iraq, Lebanon, Libya, Sudan, Venezuela, Yemen and Zimbabwe.

Intro to Stone

StakeStone offers an omni-chain Liquid Staking Token (LST) protocol to enhance native staking yields and liquidity on Layer 2 networks.

The native LST of StakeStone is STONE, a non-rebase ERC-20 token that has the same mechanism with Lido’s wstETH in terms of yield generation. STONE is an Omnichain Fungible Token (OFT), allowing for seamless asset and price transfers across blockchains.

The price of STONE in the smart contract is determined by dividing the total value of underlying assets in StakeStone by the current total supply of STONE.

Please check out further details about STONE in the project’s documentation.

Users should always do their own research before experimenting with new assets, notably by getting familiar with the technical and economic risks related to the yield-bearing mechanism associated therewith.

Risk Mitigation Parameters

Keom’s Isolated Markets also emphasize risk mitigation through various strategies.

These strategies further include setting supply and borrowing caps to manage exposure limits effectively, utilizing on-chain forensics to monitor and analyze transactions for additional security, and implementing stringent checks and balances to maintain the integrity of the trading environment. These measures collectively work towards ensuring a stable and secure trading platform for all users.

STONE and USDM will evolve in Isolated Markets beginning with the following parameters

• STONE: A cap of $5M for both supply and borrowing.
• USDM: A cap of $1M for both supply and borrowing.
• Max Liquidation Incentive: Set at 10%.
• Dynamic Liquidation Incentive: Once a user’s Loan-to-Value (LTV) ratio exceeds 90.9%, the liquidation incentive begins to decrease. This measure is designed to deter liquidations that could potentially lead to insolvency, ensuring a safer investment environment for all users.

These measures are part of our commitment to providing a responsible platform, reducing risks while maximizing opportunities for our users.

About Manta Network

Manta Network is the modular blockchain for zero-knowledge (ZK) applications. Manta Pacific is the modular L2 ecosystem for EVM-native ZK applications and dapps that want to deliver the lowest cost and best experience for users. Leveraging Manta’s Universal Circuits to enable ZK-as-a-Service and Celestia’s data availability for modularity to deliver low gas fees, Manta Pacific offers the perfect environment for ZK-enabled applications. Learn more about Manta Pacific here.

Manta Network is created by a team of experienced founders from prestigious institutions, including Harvard, MIT, and Algorand. Manta Network has received investments from many of the top web3 investment funds, including Binance Labs and Polychain Capital. It has grown through participation in the best web3 accelerators, including Alliance DAO and Berkeley Blockchain Xcelerator. Manta Network is poised to bring the next generation of web3 users and usher in a new chapter of privacy-focused web3 applications.

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About Keom

Keom is a suite of zkDeFi products powered by Polygon 2.0. Committed to asset safety and user protection, Keom leads innovation in risk metrics and methodologies, backed by world-class legal expertise and R&D.

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Disclaimer

This blog is strictly for information and educational purposes. It does not constitute an endorsement of any of the third-party products and materials referenced herein.

Its content shall always be corroborated by your own research and advice sought from independent sources.

DeFi and the overall crypto space are still developing and there are risks involved in engaging with them.

This blog shall not be deemed to constitute financial, legal, tax or any other sort of advice.

This blog shall not be construed as a solicitation to buy or sell any assets or to make any financial decisions.