Welcome to our first AMA with Max from Mero Finance!

##Blurb on Mero

Mero is a DeFi protocol that automates asset efficiency by enabling users to make their assets reactive to market conditions or user-defined variables. Mero’s core value proposition, *reactive liquidity*, aims to solve problems of capital efficiency (users aren’t maximizing the amount of yield they can be earning with their assets), opportunity cost (users have to manually decide where their liquidity should be), and volatility (crypto is a 24/7 market that moves fast). All of these aforementioned inefficiencies or paint points are a consequence of static or single-utility liquidity pools that are common in DeFi today. Mero’s reactive liquidity pools principally changes liquidity provision in DeFI by allowing users to add layers of utility to their assets while also automating them to always be earning yield up until the very moment they are more efficient elsewhere.

##How does Mero work?

The Mero protocol deploys *reactive liquidity pools* in which users can provide liquidity in exchange for pool specific LP tokens. Mero currently supports deposits for DAI, USDC, USDT, FRAX & ETH. Deposited assets earn auto-compounded yield from a yield farming strategy. Meaning, a user’s LP tokens will appreciate in value over time as the pool aggregates yield. After providing liquidity a user may register their LP tokens to an Action. It is important to note that Actions are optional, users may use Mero solely as a yield farm. When registering an Action a user is able to set customizable parameters that determine when and how their liquidity should be delegated.

The first Action that Mero will support is collateral top-ups. Where users can register their Mero liquidity to their outstanding debt on protocols such as Aave or Compound. Funds on Mero that are registered for top-ups serve as backup collateral, earning yield while also ready to be deposited as collateral when needed. When a collateral top-up is triggered a *Mero keeper* (open-source and off-chain bots that monitor registered Action positions), will execute the top-up and a pre-defined portion of the user’s liquidity will be delegated from Mero liquidity pools to their collateral. Thus preventing possible liquidation and increasing the safety level of their loan.

The vision of Mero is to continuously add support for new Actions in the future. This may include (but is not limited to); debt management, Curve imbalance protection, AMM limit orders, NFT limit orders, and Uni v3 liquidity management. As a community lead protocol that wants to support DeFi users as best as possible we also encourage the community to propose new Actions that may be added.


Please note that there is no Mero governance token yet. Don’t fall for scams! The Mero governance token will be deployed via a unique liquidity mining scheme that will distribute the majority of the token supply to key protocol participants (e.g. LPs, AMM LPs, keepers). The the Mero governance token launch will commence following the launch of Mero Actions (expected to launch soon).


Mero has been designed and built with security in mind. The core team continues to test both new and existing components of the protocol on an ongoing basis as the protocol continues to evolve. However, please keep in mind that DeFi comes with its own inherent risks and that Mero integrates with various other protocols. While the core team tries to provide sufficient documentation on all Mero components, please reach out on Discord if there are any questions regarding risks on Mero. Please note that strategies may expose liquidity providers to external risk from protocols they integrate with. Please read the individual strategies’ descriptions to better understand how these strategies are designed and what risks liquidity providers may be exposed to.

Reports and findings from past audits can be found here:

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7 thoughts on “Welcome to our first AMA with Max from Mero Finance!”

  1. My main question would have to be if you guys are planning on deploying Mero on Arbitrum/Optimism anytime soon? I know it’s at the very beginning stages, but there are a lot of strategies that can be deployed, specifically for ETH.

    Love the concept though. Capital efficiency is why I love DeFi. Will be sharing more strategies as Rocketpool rolls out the full suite of DeFi products. Can’t wait to see what Mero has to offer

  2. 1. How does Mero generate higher-than-average returns than Convex for some of these pools? For example, the ETH pool uses the alETH pool on Curve/Convex. At time of writing, this pool yields up to 10.46% on Curve, and 8.52% on Convex with the boost. However, the Mero ETH pool offers 12.15%. How is this possible?
    2. After the rebrand, the Cookbook switched to Strategies. This channel was also deprecated in the Discord. Are you still offering integrated strategies, and rewarding the strategists for designing a used Strategy?
    3. After the ETH pool had to be closed temporarily due to the stETH discount event, do you plan on having fallback or rotating strategies based on what’s the most profitable at the time?
    4. How come your team decided to use proprietary Mero Keepers instead of Chainlink ones?
    5. Are you hiring?

  3. Have you considered making actions permissionless so that any user or protocol can create an action that will be executed by the mero keepers? This is similar to what chainlink keepers or keep3r network do, but with Mero you’d be earning yield while waiting for action to trigger.


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