# USDM Technical Overview

## Context

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](/usdm-meridian-mint/stability-pool-and-liquidations.md#what-oracle-are-you-using-to-determine-the-price-of-eth) 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](/resources/technical-and-security/usdm-contracts.md)

## Technical papers

#### [Whitepaper](https://docsend.com/view/bwiczmy)

[**Scalable Reward Distribution with Compounding Stakes**](https://github.com/liquity/liquity/blob/master/papers/Scalable_Reward_Distribution_with_Compounding_Stakes.pdf) (see this [article](https://medium.com/liquity/scaling-liquitys-stability-pool-c4c6572cf275) for a simpler introduction)

#### [Efficient Order-Preserving Redistribution of Troves](https://github.com/liquity/liquity/blob/master/papers/Efficient_Order-Preserving_Redistribution_of_Troves.pdf)

## Economic modelling and simulation

#### [Liquity Market Risk Assessment by Gauntlet Networks](https://liquity-report.gauntlet.network/)

#### [Macroeconomic Model of Liquity by Prof. Yulin Liu](https://colab.research.google.com/drive/1AyhFfE_EKCcMO6HeG04Se3hbraTxODWU?usp=sharing)  

## Security audits

[**Trail of Bits Security Assessment**](https://github.com/trailofbits/publications/blob/master/reviews/Liquity.pdf) January 2021

[**Audit by Coinspect**](https://www.coinspect.com/liquity-audit/) March 2021

[**Trail of Bits Liquity Protocol and Stability Pool Final Report**](https://github.com/trailofbits/publications/blob/master/reviews/LiquityProtocolandStabilityPoolFinalReport.pdf) March 2021

[**Trail of Bits Liquity Proxy Contracts Report**](https://github.com/trailofbits/publications/blob/master/reviews/LiquityProxyContracts.pdf) March 2021

## Risk assertions

[**On the Price Stability of LUSD**](https://medium.com/liquity/on-price-stability-of-liquity-64ce8420f753)

[**Addressing Concerns about Liquity**](https://medium.com/liquity/addressing-concerns-about-liquity-2af3e1d0a946)

## Code base

Github Repository

#### [Launch Meridian App](https://www.meridianfinance.net/#/)


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