Components

Refinery - Refinery functions as the center for Mellow Finance that generates yield and yield advances, and it shares number of similarities with platforms for collateralized lending like MakerDAO and AAVE. BNB, DAI, USDC, and BUSD, as well as the corresponding yield-bearing tokens for each method, are the currently approved collateral options. Users take loans using the synthetic assets mBNB (for BNB yield token deposits) and mUSD (for DAI, USDC, and BUSD yield token deposits). Mellow charges a fee of 10% of all generated yield, which is paid to the DAO treasury.

Interswap - Mellow incentivizes liquidity pools for synthetic assets, allowing users to rapidly swap their synthetic assets for the underlying asset upon receipt. If the synthetic asset's liquidity pool exchange rate value is much lower than the underlying, the Interswap allows customers to stake their synthetic assets and have them converted into their base asset over time. As a result, the Interswap is seen as a backup to the redeemability of synthetic assets rather than the preferred path for consumers to swap synthetic assets.

Grindstone AMO - There is a predetermined number of mAssets that can be converted to the underlying collateral in the Interswap. The Interswap now has an excess of assets as a result. Through the Grindstone AMO, these surplus assets are used to provide liquidity for their respective mAssets. In order to simulate the effects of the Interswap, Grindstone deposits to the liquidity pools raise the price of the mAsset, generate yield, and can be withdrawn single-sided as mAssets.

Mellow DAO - The governance of Mellow Finance is managed by the DAO utilizing the native token, LAB.

LAB Token - The Mellow governance token (LAB) initial supply and emissions are split among the developers, the community, and the DAO itself.