Mero

Yield Aggregator

Mero is a yield optimizer that autonomously allocates user-deposited liquidity to where it is most efficient based on user-defined variables and market conditions.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Mero delegates liquidity to where it is most efficient by deploying multi-utility liquidity pools, yield farming strategies, off-chain bots, and customizable user actions.
What we like less
The platform is exposed to composability risks as each asset strategy deposits into third-party dApps like Curve and Convex.
What it means for you
Offers you a way to register on-chain actions to make your liquidity "reactive" by defining personalized market triggers. For example, if you have a loan at risk of liquidation, liquidity is deployed to top-up your collateral to prevent liquidations. Once the loan is safe again, your liquidity gets redeployed to generate yield.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $137.5K (Rank #214)
  • TVL Ranking by Yield Aggregator: #0
  • Blockchain: Ethereum
  • Chain TVL
    • Ethereum: $137.52K
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Mero audited in April 2022
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Bottom 80% by total value locked increases risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Timelock is less than 48hrs, which provides users with less time to exit if any malicious upgrades are approved
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
Things to know about Mero

How Mero works

Mero is a yield optimizer that deploys liquidity to asset-based strategies. Users can register their liquidity provider (LP) tokens for actions. Registered liquidity will continue to earn yield and MERO rewards until needed elsewhere. Liquidity pools on Mero are isolated and asset specific, which means each supported asset has its own pool. This allows Mero to deploy pooled assets to optimal yield strategies. Each pool has a required reserve ratio. This represents the ratio of assets that are idle and not being utilized for a yield farming strategy. Specific reserve ratios are selected to optimize gas efficiency and top-up solvency. The ratio of assets in a pool that is deployed to a yield strategy represents the target allocation factor. Each pool has its own strategy that is designed by a strategist. The goal of a strategy is to maximize the returns of a selected pool's asset. In return, the strategist for a Mero pool receives a share of the pool's earned yield. Part of the strategy profits will also go to MERO token holders (when the governance token is launched). The user funds deposited earn compounded yield over time from strategy profits and platform fees. This accrues to the LP token over time as it appreciates in value. Mero also enables users to autonomously increase the efficiency of their assets by registering on-chain actions. These actions make the LP tokens reactive via customizable market conditions. For example, a user can have a preset condition to automatically top up an overcollateralized loan if it nears liquidation levels. In this case, the LP tokens will continue to earn yield until the pre-defined user condition is met. At this point, a portion of their liquidity will shift from Mero to where it is needed. To execute these actions autonomously, Mero relies on an off-chain network of bots called Keepers. Any individual can run a Keeper bot to earn protocol fees and MERO emissions.

How Mero makes money

Mero charges performance fees for yield aggregation and action fees for liquidity delegation. The protocol collects a performance fee on strategy profits that is split between the strategist, MERO token holders, and the vault reserve. The vault reserve is an insurance fund that will be accessed if a strategy results in a significant loss. Whenever an action is performed successfully, a small fee is charged on delegated liquidity. This fee is split between the LPs of the Mero-specific pool, MERO token holders, and the Keeper bot that executed the action.

How you make money on Mero

You can earn yield by depositing your assets into a single-sided asset pool. In the future, when the MERO governance token is launched, stakers will be able to earn a portion of platform revenue.

Mero Pools
Mero ETH Staking
0%
Yield
$12K
TVL
Risk
C
Protocol
Mero
Chain
Ethereum