Manifold Finance Announces Launch Of Liquid Collateral Platform and MEV Extraction

On April 4th, it was announced that Manifold Finance will launch a liquid collateral platform in the coming months, which will design mevETH as a liquid collateral derivative that provides additional income through MEV extraction. In order to initiate the agreement, Manifold acquired the verifier set of Cream Finance, which means that those who pledge ETHs in Cream Finance will later mortgage to Manifold’s liquid mortgage agreement. When the agreement is initiated, Manifold will control approximately 25000 ETHs.

Manifold Finance will launch a liquid collateral platform and has acquired the set of validators from Cream Finance

Introduction

On April 4th, Manifold Finance announced its plans to launch a liquid collateral platform that will provide additional income through MEV extraction. This platform will design mevETH as a liquid collateral derivative, which will allow users to pledge their Ethereum (ETH) for additional income through Manifold’s liquid mortgage agreement. In order to initiate the agreement, Manifold acquired the verifier set of Cream Finance, which means that those who pledge ETHs in Cream Finance will later mortgage to Manifold’s liquid mortgage agreement. When the agreement is initiated, Manifold will control approximately 25,000 ETHs.

What is Manifold Finance?

Manifold Finance is a decentralized finance (DeFi) protocol that offers a range of financial services such as borrowing, lending, and trading to users on the Ethereum network. The platform aims to provide users with value through its unique approach to decentralized finance by giving users more control over their investments.

What is MEV Extraction?

MEV stands for Miner Extracted Value, which refers to the profit that miners can get by reordering, censoring, and inserting transactions in new blocks. MEV extraction allows users to capture this value by using various strategies and tools such as flash loans, liquidations, and arbitrage. The introduction of MEV extraction has brought about new opportunities for users to earn additional income.

Liquid Collateral and Manifold’s New Platform

Manifold’s new platform offers a liquid collateral derivative called mevETH, which allows users to pledge their ETH for additional income through Manifold’s liquid mortgage agreement. This platform allows users to earn from MEV extraction without having to engage in it directly. By pledging their ETH, users can also earn from the appreciation of ETH in the cryptocurrency market.

Acquisition of Cream Finance’s Verifier Set

Manifold’s acquisition of Cream Finance’s verifier set means that those who have pledged ETHs in Cream Finance will later mortgage to Manifold’s liquid mortgage agreement. This move provides a seamless transition for Cream Finance users into Manifold’s liquid collateral platform.

Benefits of Manifold’s Liquid Collateral Platform

Manifold’s liquid collateral platform offers several benefits, including:
– Increased liquidity and flexibility: Users can pledge their ETH and receive a liquid derivative, mevETH, which provides them with additional income and the flexibility to trade.
– MEV extraction without direct engagement: Users can earn from MEV extraction without engaging in it directly, allowing them to diversify their investments.
– Access to Manifold’s DeFi services: By participating in Manifold’s liquid collateral platform, users can access its range of DeFi services such as borrowing, lending, and trading.

Risks of Manifold’s Liquid Collateral Platform

As with any investment, Manifold’s liquid collateral platform has its risks. These include:
– Market volatility: Cryptocurrency is known for its volatile nature, meaning that the value of mevETH may fluctuate dramatically.
– Smart contract risk: There is a chance of smart contract failure, which may result in the loss of users’ assets.
– Regulatory uncertainty: The cryptocurrency market is still largely unregulated, and there is a possibility of regulatory changes in the future that may impact Manifold’s liquid collateral platform.

Conclusion

Manifold Finance’s new liquid collateral platform offers an innovative approach to decentralized finance by providing users with additional income through MEV extraction. This platform aims to provide increased liquidity and flexibility while also giving users access to Manifold’s DeFi services. However, as with any investment, it’s important to consider the risks associated with it. Overall, Manifold’s liquid collateral platform provides a unique opportunity for users to diversify their investments in the cryptocurrency market.

FAQs

1. What is a liquid collateral derivative?

A liquid collateral derivative is a financial instrument that allows users to pledge their assets for additional income while still having the flexibility to trade.

2. What is MEV extraction, and how does it work?

MEV extraction allows users to capture the value extracted by miners through various strategies and tools such as flash loans, liquidations, and arbitrage.

3. Is Manifold’s liquid collateral platform safe?

As with any investment, there are risks associated with Manifold’s liquid collateral platform. It’s important to consider these risks before investing. However, Manifold has taken measures to mitigate these risks and provide a safe platform for users.