Thread by @CryptoOpti45

Lending and borrowing is literally becoming a norm in #DeFi. This has given #Crypto users ample opportunity to lend their assets for lucrative interest.
Just like #tarot, #Aave, #Sonne,
@MendiFinance aim to become the first lending protocol on @LineaBuild.

This thread will comprise 👇

👉Introduction to #MendRewards 👉Emissions & Bribes
👉Staking and Revenue Sharing
👉Liquidation
👉Collateral and Reserves
👉Tokenomics/Distribution

@MendiFinance a lending/borrowing protocol is deployed on a smart contract code that aligns with Ethereum virtual machine will launch on Linea. Mendi Finance provides peer-to-peer lending solutions that are fully decentralized, transparent and non-custodial.

Upon launching, #Mendi will offer the following high-liquidity money markets with dynamically adjusted incentives:
ETH
BTC
USDC
USDT
DAI

MENDI will be rewarded to users who lend/borrow tokens in the protocol. Emissions will take place for 3 years.
$MENDI reward emissions will decrease over time.
For liquidity, Mendi Finance will be bribing Velocore on a weekly basis.

Instead of giving tokens freely to liquidity providers, Mendi Finance chose this way. Earned VC will be distributed to $MENDI stakers.

For the first month, $MENDI supply emissions rate will be equal to the borrow emissions rate. After the first month, it will be
10% for lenders

70% for borrowers and
20% for bribers

Though the rate can be adjusted via governance to keep up with the market

sMENDI and uMENDI represents the staked version of $MENDI. The purpose of staking is to distribute protocol revenue and VC rewards with stakers.

Stakers will receive 80% of the protocol revenue and 80% of VC rewards for the first 3 months. After team tokens start to get unlocked

stakers will begin receiving 100% of the protocol revenue.

Protocol revenue is generated by charging a fee based on reserve factors for different pools. The riskier the pool, the more fees will be generated this way.

There will be two different pools for staking. One of them will be sMENDI, where the rewards will be used to buy #MENDI from the market and distribute it to sMENDI stakers.

👉LIQUIDATION
Liquidation is determined by borrow collateral factors (used to determine initial borrowing capacity).

When an account borrow balance exceeds the limits set by collateral factors, it is eligible for liquidation.

A liquidator (a bot, contract, or user) can call the absorb function, which relinquishes ownership of the accounts collateral, and returns the value of the collateral, minus a penalty (liquidation factor), to the user in the base asset.

👉 COLLATERAL AND RESERVE
#Mendi will adopt and implement the collateral and reserve mechanic implemented by Compound Finance.

Reserves are an accounting entry in each soToken contract that represents a portion of historical interest which can be withdrawn or transferred through

the protocol's governance.
A small portion of borrower interest accrues into the protocol, determined by the reserve factor.

#Mendi is distributed as follows:

Rewards/Bribes 60%
Protocol growth 19%
Core team. 12%
LGE participants 3.5%
Airdrop. 3%
Initial Liquidity. 2.5%

liquidity Generation Event
The $MENDI token launch will be fair and it will be based on TAROT token liquidity generation event.

Users who deposit USDC into the LGE contract at any time during the LGE will be apportioned a proportional share of the LGE regular allocation. (3.2%

of the total supply of $MENDI)
As an additional incentive, users who deposit during the first day will be apportioned a proportional share of the LGE bonus allocation. (0,3% of the total supply of $MENDI)

Meaning that they would be getting more than what the lend

For details information check out 👇
Test website testnet.mendi.finance
Twitter
twitter.com/MendiFinance
Discord
discord.gg/G3vWy8cbnK

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