Glossary

MemeLend DeFi Glossary

Asset Generation

• Creation of protocol-specific tokens through over-collateralization.

Borrowing

• Obtaining assets from the protocol using deposited collateral.

Borrowing Limit

• The maximum amount of a given asset that can be borrowed, based on liquidity and usage.

Collateral

• Assets pledged to secure a loan, subject to liquidation if safety thresholds are breached.

Collateralization Ratio

• The Percentage that defines borrowing capacity relative to collateral value.

Decentralized Lending Platform

• Permissionless protocol enabling peer-to-peer lending/borrowing without intermediaries.

Efficiency Mode (E-Mode)

• Groups price-correlated assets (e.g., stablecoins) to allow higher borrowing limits and capital efficiency.

Excess Collateralization

• Requirement that collateral value exceeds borrowed amount to ensure loan safety.

Forced Closure

• Automatic liquidation when a position’s collateral falls below the required threshold.

Health Factor

• Risk indicator of a position; values below 1 signal imminent liquidation.

Lending

• Supplying assets to the protocol to earn interest.

Leveraged Position

• Using deposited assets as collateral to borrow and increase exposure.

Liquidation Boundary

• Threshold at which a position becomes under-collateralized and subject to liquidation.

Liquidation Incentive

• Bonus paid to incentivize quick liquidation of unhealthy positions.

MemeLend

• A decentralized, non-custodial lending platform on MemeCore, enabling lending, borrowing, and liquidations.

Position Closer

• An agent or contract that triggers the liquidation of under-collateralized loans, receiving a portion of the collateral.

Restricted Asset Mode

• Limits borrowing to specific stablecoins and restricts collateral to a designated asset.

Single-Asset Restriction

• Limits borrowing to one specific asset per user at a time.

Supply Ceiling

• Max cap on how much of an asset can be supplied, governed by market and risk parameters.