The average daily trading volume in Korea’s digital asset market during the first four months in 2021 recorded 14.2 trillion won, almost a 9.5 times increase from 1.5 trillion won in 2019. Despite high trading volume and abundant liquidity in the Korean market, digital assets listed on the exchanges in Korea have not been able to be utilized by any global DeFi products that have grown exponentially over the past two years.

The absence of oracle contracts that feed prices of products being traded on the Korean digital asset exchanges to blockchains has been one reason global products such as Compound, AAVE, and Maker have not been able to search the types and scale of digital assets popular in Korea.

In recognition of this problem, the purpose of the project Mesher is to develop an oracle that feeds information such as the type, price, and trading volume of digital assets listed on major digital asset exchanges in Korea to blockchains, and develop and run a P2P digital asset deposit and loan protocol using this oracle.

This can raise the marketability of digital assets listed solely on the Korean digital asset exchanges and hence underutilized in the DeFi market (Mesher’s deposit/loan protocol), and swiftly facilitate global DeFi products in newly supporting digital assets that are popular in the Korean market (Mesher’s oracle contract).

In the case of digital asset price gaps between Korea and overseas market from a temporary supply and demand imbalance (referred to as Kimchi Premium or Reverse Kimchi Premium), continuous arbitrage trading enabled between Mesher -- that tracks Korea’s digital asset market prices -- and overseas DeFi products can also contribute to reduced price gap.

By reducing the wide gap existing between the Korean digital asset market, which sees active trading but is isolated from the international market described as the Galapagos Syndrome, and the global digital asset market through P2P and blockchain-based alternatives, it seeks to contribute to enhancing the presence and reputation of Korea’s digital asset market