Review on Meter Stable by jesus ruiz
Meter, a fast, stable and secure DeFi platform
Next I will tell you about Meter. Meter is a Decentralized Finance platform was designed and built from the ground up to allow it to be used as a DeFi. Other decentralized applications such as decentralized exchanges, synthetic asset platforms, lending applications and many others can be built on top of Meter to take advantage of its fast and decentralized network.
The Meter platform created a fully decentralized, low-volatility stablecoin called MTR for fees and payments, and a resident currency called MTRG to validate transactions. The platform uses Proof of Work to create the MTR stablecoin and Proof of Stake with the resident currency MTRG.
This hybrid consensus mechanism makes Meter faster because the Blockchain can process thousands of transactions per second, reaching finality almost instantly.
Generally, native cryptocurrencies are too volatile to be used for frequent transactions, and stablecoins are centralized, have limited capacity or rely on other fiat currencies.
Meter can be used for everyday purchases and payments, such as for the retail market.
Meter uses the cost of production and the arbitrage behavior of PoW miners to set the long-term equilibrium price for the market. This equilibrium price anchors MTR to the competitive global price of electricity, with a more stable value than any fiat currency.
Fiat-backed stablecoins, such as USDT and USDC, are centralized, so they are subject to regulatory restrictions, while cryptocurrency-backed stablecoins can only be a small percentage of the circulating supply to avoid avalanche crashes during liquidation scenarios.
Meter's true decentralization is designed to avoid these systemic risks. By forgoing USD peg, MTR maintains long-term purchasing power and stable value.
Pros
- Meter has a Stablecoins not associated to fiat currencies, which makes it less volatile.
- It has a hybrid consensus mechanism that makes it faster in processing transactions.
- Being fully decentralized and not anchored to any fiat currency, MTR maintains its stability in the long term.
Cons
- none at this time
