Meteora Town Hall #8 & #9 Recap — Building top tier DeFi primitives

Hello fellow Meteorans, we had 2 great community calls on 1 & 8 March 2023 where we discussed Meteora’s role in building top tier DeFi primitives for Solana, the importance of coming together to build these primitives and also talked about upcoming integrations with various partners.

Here’s a quick summary:

Top Tier DeFi Primitives

• Meteora’s goal is to build top tier DeFi primitives to drive growth and liquidity in Solana.
• DeFi primitives form the backbone of any blockchain, they are the basic building blocks that enable developers to create sophisticated financial applications. Primitives consist of blocks such as lending, borrowing, trading, liquidity provision.
• Meteora currently centers around 3 main DeFi primitives contributing to the infrastructure for Solana DeFi — Stable liquidity provision (Dynamic & Multitoken stable pools), capital allocation layer(Dynamic Vaults), capital efficient liquidity provision (Dynamic AMM pools)
• Previously, a number of Solana DeFi primitives were built on unstable bases under the influence of FTX; as a result, when FTX collapsed, so did the protocols that were constructed on top of it. For a blockchain to have a robust foundation to build on, it is crucial that its primitives are owned by the community and not subject to the control of any centralized entity.

Battle tested Protocol

• Meteora had been battle tested twice last year, with the first being the Mango exploit. The impact was limited as we were still Beta testing and had imposed user deposit limits. We managed to recover the funds through Mango’s insurance funds, and immediately implemented additional measures of monitoring pool utilization rates to mitigate future exploits.
• Solend’s hack came along and tested these additional measures. We successfully detected high pool utilization rates of > 80% for both Stable and Coin98 pools, and withdrew all funds back into vaults for safety.
• We are consistently talking to partners, and working on risk mitigation strategies together with everybody to strengthen Meteora.

Partner Integrations

• We had recently integrated with Drift protocol and have started allocating to their lending pools. We had a fruitful AMA with them to understand their safeguards on how they protect user funds.
• To take advantage of yield opportunities from NFT lending, we have also integrated a conservative allocation with Frakt for the SOL vault. There would be an upcoming AMA where we will discuss their mechanics, yield opportunities, and associated risks.
• We have several other integrations lined up and are constantly looking out to integrate with more lending pools to diversify the yield opportunities for our users. Do let us know if you feel strongly about any protocol that we should prioritize integration with.

Shaping Meteora Together

• To achieve our goal of developing top-tier DeFi primitives, we need to build a strong core of Meteorites who can help to shape and advocate Meteora.
• We want to do well for Meteora and getting the ecosystem excited about us, through decentralizing ownership of Meteora, is an essential step to get there.
• It is important that our set of tokenomics is designed in a way that when our DeFi primitives grow, it will benefit the community and incentivize everyone to work together to contribute towards Meteora’s development.

We think it is important to get people excited about Meteora, understand our value to the ecosystem and to use the platform that we have built. We will be releasing a green paper which will detail the tokenomics proposed and will iterate it together with everyone.