An institution-focused DeFi application provider

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Jon Wiesblatt, CEO of Liquid Meta

By the Exec Edge editorial team

Cash Meta Capital Holdings (NEO: LIQD), a decentralized financial infrastructure and technology company, is the latest DeFi company to go public. Unlike its competitors such as WonderFi Technologies Inc. (NEO: WNDR) (OTCMKTS: WONDF) and Challenge Technologies Inc. (NEO: DEFI) (OTCMKTS: DEFTF) which focuses on retail consumers, Liquid Meta focuses on the institutional side of the ledger. This makes it the first pure-play public DeFi company to focus on this area.

News of Liquid Meta’s listing on Canadian stock exchanges was made official on December 20, when the company received final approval to list its common shares on the Canadian Stock Exchange. Neo Stock Exchange. Over the next 12 months, the company will focus on scaling its niche cash extraction operations, while advancing the development of software tools and products to integrate other capital pools. seeking to monetize the growth of DeFi.

The primary goal of its liquid mining operations is to generate constant fees, not necessarily by exposing yourself to the price volatility of the digital assets themselves. This can be achieved in a number of ways, although extracting cash is supposed to be Liquid Meta’s main area of ​​focus.

Cash mining, also known as yield farming, refers to the mining of cryptocurrencies within cash pools, which are areas where investors offer cash (liquidity providers). They are eligible to receive a percentage of the fees paid when trading a specific currency pair. Each liquidity pool is specifically designed for a particular currency pair, such as ETH / USDT, ETH / DAI, ETH / USDC. The money put into these liquidity pools is traded or borrowed by other users on other platforms.

While Liquid Meta is still in the development phase with its technology platform called Meta Bridge, it will undergo a full test of internal systems before reaching institutional clients more broadly. This will be used to execute and validate an actual profit model before committing to the sales channel. If successful, Liquid Meta has a good chance of generating positive cash flow even before the first partnership or license agreement has been signed.

Obviously, delivering a robust fintech platform for use in the highly regulated banking industry is a monumental task. Before institutions commit, any new platform must meet a wide range of regulatory and security criteria, such as analytics, reporting and accounting, pre-trade compliance, and network security. Providing Liquid Meta can consistently fix these lingering issues while building Meta Bridge, it should be in a privileged position to engage institutions once the platform matures.

The CEO of Liquid Meta is Jon Wiesblatt, who has over two decades of experience in the financial industry in a variety of specialist roles in equity research, portfolio management, capital markets, hedge funds and asset management. investments. Mr. Wiesblatt has spent the past 15 years as an institutional investor working as a portfolio manager for several multi-strategy funds, from a Canadian equity mutual fund to Sprott Asset Management, as well as recently as an advisor to one of the largest Family Offices in Canada, Reichmann International Development Corporation.

Decentralized finance is a booming market

Liquid Meta believes that the broader trend towards digital assets is secular and will grow exponentially over time. This macro belief in the market’s potential is shared by other leading industry players who made their fortunes buying cryptocurrencies before they became all the rage.

For example, crypto investor Matthew Roszak said Business intern in August that he expects DeFi to exceed $ 800 billion in notional assets by 2022. Roszak, whose net worth is around $ 1.5 billion according to Forbes, believes that the adoption of traditional crypto, a global pursuit of yield, and high inflation may all broaden DeFi’s profile.

Of course, we are in a time when the race for performance is exceptionally coveted. Most banks are essentially offering zero return on regular consumer savings accounts while inflation skyrockets at generational clips. For November, the consumer price index rose 0.8% on a seasonally adjusted basis after increasing 0.9% in October, according to the US Bureau of Labor Statistics. Over the past 12 months, the All-items index rose 6.8 percent before seasonal adjustments, which was the highest level in nearly 40 years.

It is in environments with such low interest rates and high inflation that consumers scramble for higher-yielding investments in order to retain their purchasing power.

Another data point capturing the success of DeFi is represented in the Total Locked Value (TVL) across different protocols and applications. Currently, TVL stands at $ 155 billion, up from less than $ 1 billion in June 2020. This is an overall increase of 11,400% in about eighteen months.

Total Locked-In Value, in the context of cryptocurrency, is the sum of all assets deposited into Decentralized Finance (DeFi) protocols that earn rewards, interest, new coins and tokens, fixed income , etc.

It is the promise of insatiable growth that arouses an inordinate interest in space. Particularly in pioneering companies such as Liquid Meta, which seeks to compress incredibly complicated and fragmented technology protocols into a single platform. If successful, the returns for patient investors might be worth the wait. At the very least, Liquid Meta has increased the odds of success, raising funds through the public list and having the ability to raise more publicly in the future, if it so chooses.

The relative good performance of associated DeFi competitors such as WonderFi Technologies Inc. and Challenge Technologies Inc. only increased expectations.

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