Defrost Finance is a decentralized protocol that allows you to utilize liquidity pool (LP) tokens and other pool tokens from various Avalanche and cross-chain protocols as collateral for generating H2O, a soft-pegged stablecoin native to the Avalanche ecosystem. Defrost Finance helps users improve capital efficiency from assets locked in pools or vaults. Defrost Finance allows users to provide liquidity to gain additional yields from features such as farming, borrowing, staking, swap, and bridge support for convenience when trading.

Defrost Finance gives birth to a stablecoin, H2O, which is backed by existing collateral with a proven record of value and stability. H2O can be minted by depositing collateral such as liquidity provider tokens from AMM (automated market maker) dexes (decentralized exchanges), lending, and other DeFi protocols.

MELT underpins voting power in the Defrost governance. As a governance token, MELT is used by its holders to vote on changes to parameters inside of the Defrost Finance Protocol like collateral types, Stability Fees, the H2O savings rate, liquidity mining incentives, minimum collateral rate, and many others.