USDM Technical Overview


Meridian is a direct fork of the highly successful Liquity protocol and as such it shares the exact same smart contract code base. All contracts are fully verified and can be reviewed on Sourcify

As a direct fork of Liquity the economic modelling, security audits and risk assessments conducted by Liquity continue to be relevant for the Meridian deployment and as such these resources are referenced below. A technical system summary including contract descriptions, function descriptions, and more is available in the Meridian README

Due to the deployment constraints on the Base Network Meridian has implemented one simple change to the Liquity core contracts that enables the price feed to be updated if required. This capability was added to provide long term surety for the protocol and will be fully renounced once the network is fully mature and stable.

Verified contracts can be found here

Technical papers

Scalable Reward Distribution with Compounding Stakes (see this article for a simpler introduction)

Economic modelling and simulation

Security audits

Trail of Bits Security Assessment January 2021

Audit by Coinspect March 2021

Trail of Bits Liquity Protocol and Stability Pool Final Report March 2021

Trail of Bits Liquity Proxy Contracts Report March 2021

Risk assertions

On the Price Stability of LUSD

Addressing Concerns about Liquity

Code base

Github Repository

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