Asset
Vault handles only fungible tokens (ERC-20) assets. Without any specific restrictions, all assets can be listed on Vault. In this process, each token must form a pair with one or more Key Tokens. In other words, by depositing assets recognized by Vault as collateral for specific tokens, liquidity and the value of those tokens can be supported. This process is akin to creating a small Vault specifically for each particular token within Vault. Therefore, when configuring liquidity in Vault, specific assets can be paired with Key tokens recognized by Vault, allowing for mutual liquidity allocation, while liquidity cannot be mutually allocated among general tokens. Tokens eligible for handling by Vault, after going through the listing process, can be broadly categorized into two main types:
Key Token
These tokens hold a position as the reserve currency within the entire ecosystem. While this includes stablecoins, it does not strictly refer only to stablecoins. When listing a new token, one or more Key Tokens of equal value must be deposited as a pair with the token. In other words, the value of the token is derived from the Key tokens deposited together. In this context, Key Tokens must be widely recognized by users across the market, either implicitly or explicitly, or be widely used by many market participants, depending on their usage. Key Tokens can include the following types of tokens:
- Stablecoins
- Native currencies of the respective networks
- Tokens widely recognized and valued across the market due to their extensive usage
To initialize the vault with the start of the protocol, several basic Key Tokens are registered in the initial vault. Afterwards, listings of new assets will gradually increase through this key token. Since Key Tokens are high-quality assets, listing and liquidity allocation between them is possible. Afterwards, new Key Tokens can be added through governance voting and DAO, limited to tokens that meet the conditions. However, this will prevent complexity in routing to markets that are paired together to allocate liquidity between two tokens, and will require conservative and strict standards for the safety of the protocol.
Token
This category encompasses the majority of assets that do not meet the criteria for Key Tokens and are of a general nature. Tokens falling into this category may exhibit high volatility or may not yet be widely recognized in the market. Therefore, caution is warranted when trading these tokens.
In smart contracts, it is impossible to ascertain whether these tokens represent actual valuable assets. Consequently, Vault references the value of the Key Tokens backing these tokens to determine their worth. Therefore, when these tokens are listed, Vault initially considers their value as zero. As a result, they do not immediately qualify for MECA token minting upon initial listing. This can be understood as a fee incurred during certain listing processes.
However, there may be assets that are widely used in some markets and have been recognized for their value by many market participants but have not yet been listed on Vault. Despite being actively traded and circulated in external markets, attempts to list them may not be pursued vigorously due to fees perceived as losses during the listing process. Therefore, in such cases, they can be pre-listed through governance voting and DAOs without a separate listing process. This pre-listing process signifies being added to Vault's token handling list to allow liquidity to be deposited, rather than indicating that liquidity has been deposited.