It’s been a few weeks since we’ve launched our Ascend program, so the MetaStreet team has compiled a list of helpful FAQs that can get any new MetaStreet Ascend user up to speed.
We’ll be updating this list of FAQs as we continue to expand the Ascend program and provide more XP opportunities and cooperate with different ecosystem partners.
Last updated: March 18, 2024
What is MetaStreet?
MetaStreet is a permissionless structured credit protocol designed to unlock financing for all forms of illiquid onchain assets, such as artwork, collectibles, domain names, or luxury watches. Any onchain asset with an ETH address is eligible for collateral. For the ASCEND XP program, the focus will be to first unlock liquidity for the largest untapped yield source in crypto -- NFTs.
MetaStreet is able to scale liquidity for onchain asset by innovating on two fronts:
1️⃣ Automatic Tranche Maker (ATM) - a pooled lending product that allows lending capital to be sorted by price, term, and rate, then pooled together, enabling collaborative lending with the best terms for borrowers. The ATM supports all lender risk levels without a minimum capital requirement, allowing for simplified, single-click loan selections and more liquidity for borrowers.
2️⃣ Liquid Credit Token (LCT) - denominated as mwstETH, LCTs are high-yield-bearing tokens that are composable across DeFi applications, meaning that holders can swap, trade, leverage, and borrow with LCTs. Liquid Credit Tokens also have the unique feature of allowing holders to earn stETH yields + NFT loan yields on top. Since the feature was launched in Q3 2023, it has facilitated $100m of longer-dated debt volume.
What is the Ascend Rewards Program?
The Ascend Rewards Program is a new initiative by MetaStreet to reward community members who participate in the protocol and enable discovery of yield generating opportunities in NFT loans. The program features a system for earning experience points (XP) through various activities, with the opportunity to increase XP over 300% at the very beginning of the program (depending on the deposit tiers and the length of time that users supply liquidity). Additional rewards through partner integrations across the LSDfi, NFT, and Blast ecosystem will also be available for participants to earn more points.
When does the Ascend program start and end?
The Ascend program runs for three months, ending in May. It starts with the launch of the CryptoPunks/wstETH lending pool and will introduce more support for LST & NFT collections and additional XP earning opportunities in stages.
How can XP be earned in the Ascend program?
XP can be earned through Reserve Actions and Prestige Actions. Reserve Actions, which make up 80% of the total XP allocated, include depositing wstETH into lending towers and supplying liquidity to Liquid Credit Token pools on Curve Finance with mwstETH and wstETH.
Prestige Actions involve community engagement, such as sharing invite codes and completing social quests (such as posting about MetaStreet and using the #metastreetASCEND tag on X).
Checking into Zealy to identify new XP earning opportunities is also another way for you to earn Prestige XP https://zealy.io/cw/metastreet-8509/questboard
What are the benefits of participating early in the Ascend program?
Early participants can enjoy several benefits, including a 50% XP boost on Day 1, which decreases by 5% daily for the first 10 days, and up to a 50% XP boost for being among the first to deposit in the initial 4,000 wstETH cap.
Additionally, early depositors can earn daily vested XP and bonuses for mwstETH LCT & wstETH deposits on Curve Finance.
How long are my Lending Tower loan deposits locked in for?
Loans in the ASCEND campaign range between 6-months to a year in duration and cannot be redeemed when the deposit is deployed into an active loan until it is repaid. You can redeem you loan deposit to wstETH when a loan is repaid through app.metastreet.xyz. In the meantime, your minted Liquid Credit Token should enable you to swap mwstETH to wstETH if you wish to access more immediate liquidity. Note that early withdrawal of your LCT may result in loss of ASCEND XP.
How long do I have to supply LP on Curve for?
When you supply liquidity for mwstETH/wstETH, your XP vests daily through bonus XP and base XP. Points are fully vested after 10 days for bonuses and 30 days for base.
What are some of the risks associated with depositing in MetaStreet lending towers?
Overdue loans in a Pool can be liquidated by any external actor. The loan collateral is then transferred to be auction on MetaStreet. After the collateral is sold, the proceeds are remitted to the Pool and used to repay the deposit ticks that funded the loan.
Liquidation proceeds are used to repay lower ticks before higher ones, so that the highest ticks will absorb any losses from a shortfall of the loan repayment. If the liquidation results in a surplus beyond the defaulted loan's repayment, a proportion (95%) of the surplus is remitted to the borrower, while the remainder is distributed to the deposit ticks.
What are some of the risks with supplying liquidity for the LCT pools (mwstETH-wstETH)?
Swap Markets can be extremely volatile. Please exercise caution when exercising trades as low liquidity may cause slippage rendering trade unprofitable. Some of the risks to consider include:
- Impermanent loss: For liquidity providers, the changing value of assets within a pool can lead to impermanent loss, where the dollar value of their deposited assets decreases compared to holding the assets outside the pool.
- Slippage: In pools with low liquidity, large trades can significantly impact the price of an asset, reducing the profitability of arbitrage strategies.
How does the Ascend program ensure the value of XP and prevent point dilution?
XP emissions reduce over time. This ensures that early depositors are rewarded more generously, and point dilution does not occur.
How can I stay updated on the Ascend Points Campaign?
To stay updated on the Ascend XP Campaign, follow MetaStreet's social media accounts on X or Discord. Notifications about the campaign launch and updates will be shared through these channels.
What else?
If you ever feel stumped or need a refresher about how ASCEND works, use our handy commands to assist or open a ticket on our Discord channel.
Ascend Commands
!xp !strategy !arb !loop !timeline !stages !LCTfi !restaking
MetaStreet
!team !investors !opportunity