MEZZ Launches Bidding-Backed Collateral Extension for DeFi

Saint Kitts and Nevis, Basseterre–(Newsfile Corp. – March 8, 2023) – MEZZ, a smart contract protocol, has launched a DeFi platform for users to engage in acquisition and liquidation of NFTs and other crypto assets through bidding-backed collateral extension. This unique approach is aimed at solving the liquidity problem in digital asset trading and acquisition. This way, users can acquire specific cryptocurrency assets without having all the necessary liquid assets available, to meet the needs of a rapidly changing market.

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With the MEZZ platform, the acquisition of an NFT or other crypto assets functions as the target acquisition in analogy to mezzanine finance, with an undercollateralized buyer being supported by the mezzanine financier to complete an acquisition.

At its core, users can take advantage of current market pricing and gain access to funding from other users by creating deals for specific ERC-1155, ERC-721, or ERC-20 tokens, known as “Target Assets”, without needing all the required liquidity immediately. An ETH down payment is provided by a user (“Maker”) who is creating the deal, and, if another user (“Bidder”) accepts the Maker’s deal, the Bidder will provide the remaining ETH balance for the purchase.

Furthermore, users can create deals based on their specific needs. As a result of this flexibility, traders can simultaneously take advantage of the down payment asset and the target asset that is being acquired.

Makers can create deals using MEZZ by specifying: the target asset; the amount of ETH they are willing to deposit as a down payment; the annual interest rate on the remaining ETH; the expiration date; and the payback duration.

MEZZ Token

The MEZZ token is the utility token of the MEZZ platform. The token serves several purposes across the platform including fee reductions and deal assurances.

After a deal has been created, bidders can accept the native token by providing the remaining ETH needed for the purchase. After the transaction has been executed, a MEZZ contract holds the Target Asset in escrow until the Maker repays the borrowed ETH plus interest. If the Maker does not repay the ETH within the set payback period, the deal is considered to be in default, and the bidder can claim the target asset and any MEZZ offered as a deal assurance.

On the MEZZ platform, Makers can cancel, update, or reactivate their deals prior to it being accepted by a Bidder. Alongside being fair and secure, the platform ensures that all parties involved in a deal are protected and that the Maker’s terms are followed. Basically, participants can access funding from other users to buy digital assets without needing all of the upfront liquidity.

About MEZZ

MEZZ is a smart contract protocol designed to solve the liquidity problem in digital asset trading and acquisition. The DeFi platform is developed for users to participate in acquisition and liquidation of Non-Fungible Tokens and other crypto assets through bidding-backed collateral extension.

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