# Lending - Meridian Lend

### What is Meridian Lend?

Meridian Lend is a decentralized cryptocurrency platform that enables borrowing and lending of crypto assets. It leverages smart contracts to automate the entire process, with predefined rules governing how funds are allocated, how collateral is managed, and how fees are applied.

Meridian Lend focuses on overcollateralized loans, meaning you need to deposit crypto valued higher than the amount you wish to borrow. This safeguards lenders from potential losses due to loan defaults, while allowing the protocol to liquidate the collateral if its value drops significantly.

Meridian Lend also offers its native token, which can be traded on various exchanges or staked within the platform to earn interest. Staking rewards validators for verifying transactions on the proof-of-stake blockchain that powers Meridian Lend.

By utilizing smart contracts, Meridian Lend automates the loan process—calculating terms, securing collateral, and disbursing borrowed cryptocurrency—without the need for intermediaries.

To lend, Meridian Lend allows users to deposit crypto assets and earn interest paid by borrowers. Instead of directly matching lenders and borrowers, Meridian Lend operates liquidity pools where you can deposit crypto assets, which are then lent to borrowers.

### Glossary

If you are unsure about any specific terms feel free to check the [Glossary](https://docs.meridianfinance.net/resources/glossary/lending-glossary).<br>

### Meridian Lend Security

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Meridian Lend has security at its core. It is built on the proven, open-source Aave protocol, providing confidence to both lenders and borrowers. User funds are held in decentralised smart contracts that have been formally verified and audited by third-party auditors. The protocol adopts a fully transparent risk-management framework that is based on the recommendations of specialist quantitative modeling experts.\
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Meridian Lend Contracts are Verified. [Check them out here](https://docs.meridianfinance.net/resources/technical-and-security/lending-contracts).


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