Malt is a new algorithmic stable coin. It uses a dynamic partial collateral system we call liquidity extension with many novel benefits like: rewards paid in DAI, no reward lockup, no expiry on coupons and much more.
What Blockchain is Malt launching on, and where will it go next?
Malt will be launching on the Polygon blockchain, but long-term, its goal is to be everywhere that DeFi is. After successfully launching on Polygon and proving its value, the Malt team will begin investigating other chains and consulting with Malt community members to see where they’d like Malt go next.
Is Malt a “Fork” of any other project?
No. Malt is entirely one-of-a-kind. Malt is not a fork, a spork, or any other utensil of any other project.
What happened with Malt v1?
Malt v1 was a fantastic success for the time that it ran- investor interest and the project’s TVL skyrocketed far beyond what the team expected at launch. However, a bug in the smart contract code was discovered that interfered with how users could withdraw their bonded LP tokens. Once this bug was confirmed, the Malt team froze any further investments into the “Bonded LP” process, which prevented anyone else’s funds from potentially being locked indefinitely.
Before the bug was confirmed by the team rumours starting to circulate. Investor's who were able to quickly started to sell their Malt and the price dropped below the $1 peg. After the price dropped to below $0.50 the Arbitrage Auction mechanism kicked in and brought the price back to within a few cents of peg. Unfortunately, the team were forced to shut everything down when the bug was confirmed.
Once the dust settled it was confirmed that many users were locked into their bonded LP positions due to the bug. In order to make things right for the impacted users, the Malt team decided to use the team's treasury funds to pay back the affected users. Over $13 Million dollars worth of DAI was distributed to the impacted users.
You can read more about Malt’s reimbursement process in The Defiant
There are many bridging options, but the most “official” option is Matic’s own bridge: https://wallet.matic.network/bridge. This works with ethereum to matic. See chain-bridging channel for other options.
How does Malt reward participants?
LP providers reap yield farming rewards (in DAI) - rewards can be reinvested automatically back into LP for more rewards
Auction participants receive a premium (set via Dutch auction) for purchasing arb tokens
How are rewards calculated/distributed?
Every time Malt is purchased it pushed the price up. In response to this the protocol mints new Malt and sells into into the liquidity pool for DAI… Exactly enough is sold to push price back down to peg. The resulting surplus DAI is distributed to LP providers for rewards. Rewards are vested over 24 hours to each participant.