Lending & Withdrawals

Lending

Lending on MemeLend means depositing your crypto assets into the protocol to earn interest.

No Minimum Deposit

• MemeLend does not require a minimum amount to supply.

Supply Caps

• Each asset has a supply cap to manage risk and maintain protocol stability. Caps are dynamically set based on market conditions and liquidity considerations.

Users can deposit up to the supply cap for each asset. Once a cap is reached, new deposits will be temporarily restricted until additional capacity becomes available.

Withdrawals

Users can withdraw their deposited assets at any time, provided the following conditions are met:

Collateral Usage

• The assets are not currently being used as collateral for an active loan.

Health Factor

• The withdrawal will not reduce your account’s health factor to the point of triggering liquidation.

Protocol Liquidity

• Sufficient liquidity must be available in the protocol for the requested asset.

Enabling Assets as Collateral

To borrow against your deposited assets, you must enable them as collateral. This setting is typically enabled by default upon deposit.

Once enabled:

• Your Borrow Limit will automatically update based on the type and amount of collateral deposited.

• The collateralized assets contribute to your Health Factor, which affects borrowing power and liquidation risk.

You can toggle collateral status at any time, just ensure that doing so won’t negatively impact your existing loans.

What are mTokens?

Your Claim on Deposited Assets and Earnings

When you deposit assets to MemeLend, you receive mTokens (e.g. mUSDC) receipt tokens that follow the MemeCore token standard. These represent your claim on the underlying supplied assets, along with any accrued interest.

Interest Accrual

• mTokens increase in value over time as interest is earned through borrower repayments and flash loan fees.

Exchange Rate Model

• Instead of your mToken balance increasing, the exchange rate between the mToken and the underlying asset continuously appreciates. This reflects the growing value of your deposit.

How Much Will I Earn?

As an mToken holder on MemeLend, your earnings are variable and depend on market activity. Returns come from two primary sources:

1. Interest from Borrowers

Suppliers earn a share of the interest paid by borrowers.

Average Borrow Rate

• The interest rate paid by borrowers using the asset.

Utilization Rate

The percentage of the supplied asset currently being borrowed.

The higher the utilization of an asset pool, the greater the potential return for suppliers. This dynamic rate model ensures earnings are closely tied to supply and demand.

2. Flash Loan Fees

MemeLend supports flash loans, uncollateralized loans executed and repaid within a single transaction. A fee is charged on each flash loan, and a portion of that fee is distributed to suppliers of the borrowed asset, offering an additional income stream beyond standard interest.

Yield Calculation and Variability

Each asset on MemeLend has its own supply and demand dynamics, resulting in variable APYs (Annual Percentage Yield).

Live APY Display

• The current APY is shown for each asset, reflecting real-time earning potential based on protocol activity.

Dynamic Rates

• APYs adjust automatically based on borrowing activity, asset utilization, and overall market conditions.

Note: APYs are not fixed. They can fluctuate significantly and are not indicative of guaranteed future returns.

Supply and Borrow Caps

To maintain protocol stability and manage risk, MemeLend enforces deposit and borrow caps for each supported asset:

Deposit Caps

• Limit the total amount of an asset that can be deposited into the protocol. This prevents overexposure and helps maintain healthy liquidity levels.

Borrow Caps

• Restrict the total volume of an asset that can be borrowed. This reduces the risk of excessive borrowing, particularly for lower-liquidity or volatile assets.

These caps are dynamically set and may be adjusted over time based on market conditions, asset volatility, and protocol-level risk assessments.

Reminder: DeFi carries inherent risks. While MemeLend prioritizes security and efficiency, always do your own research (DYOR) and never invest more than you can afford to lose.