Is Liquid Meta A True Volatility-Resistant Defi And Crypto Option?

Photo by Hans Eiskonsen on Unsplash

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Liquid Meta Capital Holdings Ltd. LIQD looks to be defying the common wisdom that there’s no escaping cryptocurrency’s volatility.

The decentralized finance (defi) company, whose aim is to scale defi infrastructure on a global scale, maintains that its operations are independent of the volatile nature of crypto assets and reports it has increased revenue consistently in different market conditions. 

Liquid Meta looks to evade this volatility because it’s a market maker. Unlike crypto miners like Marathon Digital Holdings Inc. MARA or Riot Blockchain Inc. RIOT, Liquid Meta’s value is not directly tied to the price of crypto assets. Rather, its revenue is generated from a process called liquidity mining.

Liquidity miners are the market makers of the crypto industry; they make trading crypto assets a safer, cheaper and quicker process for everyone involved. Liquid Meta serves as a liquidity provider to defi asset classes by staking tokens to liquidity pools. The company generates revenue every time its staked tokens are used to facilitate a transaction. 

Decentralized Exchange Sushiswap SUSHI/USD made liquidity pools a public endeavor through its automated market-making, which allowed any entity to provide liquidity to any token. Liquid Meta’s business model is built on this practice — a cornerstone of traditional financial markets like stocks and bonds. 

Bites By Numbers

Since its initial public offering (IPO) on Dec. 22, Liquid Meta has reported that it has: 

• Expanded its management team to include a new chief technology officer
• Reported quarterly revenue with a 96% gross profit margin and 76% gross profit margin including the loss on digital currency inventory 
• Supplied liquidity worth more than $2 million in the second quarter
• Provided liquidity services across seven blockchains and 20 decentralized applications 

Speaking of the company’s growth, Liquid Meta CEO Jonathan Wiesblatt said: 

“Although we are early in our journey, our second-quarter results demonstrate the power of our model on the capital deployed. Since the beginning of our fiscal second quarter, we successfully raised in excess of $22 million and are now almost fully deployed across a diversified number of layer-one blockchains and decentralized applications. The increase in liquidity we have provided subsequent to quarter-end is expected to drive significant revenue growth through the balance of the year.”

Click here for more on Liquid Meta.

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