Meridian Mint

Decentralized borrowing protocol

Meridian Mint is a decentralized, non-custodial, governance-free borrowing protocol that enables users to obtain interest-free loans against ETH collateral. Loans are paid in USDM, which is a USD pegged stablecoin.

Meridian adopts an over-collateralized lending architecture that maintains a minimum collateral ratio of 110% which is algorithmically validated and assured by a Stability Pool to maintain the pegged value of USDM.

As a direct fork of the highly successful Liquity protocol, Meridian shares the exact same smart contract code base. All contracts are fully verified and can be reviewed here on sourcify.

Motivation

Bitcoin and other cryptocurrencies were designed to enable self-custodial asset ownership and seamless online payments free from central control. However, their volatile nature has hindered their ability to function as reliable payment methods, instead, their utility has been overshadowed by their use as speculative vehicles. This has led to concerns about their dependability as a store of value and their suitability for everyday transactions.

Stable-value assets have therefore become an essential building block for Ethereum applications and have grown to represent tens of billions of dollars in value.

However, the vast majority of this value remains in the form of fiat-backed stablecoins like Tether and USDC. Truly decentralized stablecoins make up only a small portion of the total stablecoin supply, meaning the vast majority of stablecoins are centralized.

By being highly capital efficient and completely governance-free, Meridian is helping to create a more decentralized and user-friendly way to borrow stablecoins.

Benefits of Meridian

  • Zero interest rate — Borrowers can hold USDM for as long as they wish. As there is no interest to pay there is no need to worry about constantly accruing debt

  • Efficient use of capital — By using a blue-chip asset such as ETH users only need to maintain a minimum collateral ratio of 110% providing more efficient usage of deposited ETH

  • Earn Fees - Earn a share of fees in the form of ETH and USDM by staking Meridian Stability Token (MST) in the protocol Staking Pool

  • Earn MST - Get rewarded with MST by helping to secure the protocol through the Stability Pool

  • Farm USDM - Earn MST by providing liquidity to ETH-USDM

  • Governance free — all operations are algorithmic and fully automated, and protocol parameters are set at time of contract deployment

  • Directly redeemable — USDM can be redeemed at face value for the underlying collateral at any time

  • Fully decentralized — The Meridian base contracts can be accessed by multiple third parties this allows for different frontend operators and ensures that the protocol remains resistant to censorship

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