In our commitment to continually broaden our offerings, we are introducing a new project addition - Mendi Finance. The crypto industry is constantly evolving, with new projects emerging to offer innovative solutions and services. One such project making headlines in the DeFi space is Mendi Finance.
Built on the Linea blockchain, Mendi Finance provides a platform for decentralized lending and borrowing of cryptocurrencies.
This article will give you an in-depth look at Mendi Finance, including an overview of the project, its key features, the $MENDI tokenomics, and a step-by-step guide on how to buy $MENDI tokens on CoinEx.
What is Mendi Finance?
Mendi Finance is a platform for lending and borrowing cryptocurrencies. It's built on Linea and is similar to platforms like Compound Finance and AAVE. Mendi Finance allows users to lend their assets and borrow other assets, all in a decentralized, transparent, and secure way. This means users control their own money without relying on a third party.
Mendi Finance is compatible with the Ethereum Virtual Machine (EVM), a software platform used to create decentralized applications (dApps) on Ethereum. Being EVM compatible means that Mendi Finance can interact with other Ethereum-based projects and use smart contracts, which are self-executing contracts with the terms directly written into code.
At the start, Mendi Finance will support several high-liquidity money markets, including wETH, wstETH, wBTC, USDC, USDT, and DAI. These markets offer dynamic incentives, meaning the rewards can change based on supply and demand.
Mendi Finance aims to be the leading lending protocol on Linea by providing the best incentives and deepest liquidity. The platform is also focused on simplifying the user experience by making different trading strategies easy to understand and use. Users who contribute more to the community will receive additional rewards.
Furthermore, Mendi Finance plans to connect individual investors with institutional DeFi products, thereby allowing users to earn more yield on their assets. By tapping into this larger market, Mendi Finance aims to help the community generate higher and more secure returns, especially during the next market upswing.
Key Features of Mendi Finance
The Mendi Finance protocol has the following key features:
- Linea Blockchain Integration: Built on Linea, a type-2 zkRollup EVM-compatible blockchain, Mendi Finance benefits from instant transaction finality and attracts a wide range of developers from the EVM ecosystem.
- Mendi Loyalty Program (MLP): The Mendi Loyalty Program uses ERC-20 tokens to track and reward user activities. Users earn MLP by staking $MENDI or borrowing from lending pools, with initial staking yields distributing up to 100% of revenue to stakers.
- Collateral and Reserve Mechanics: The Mendi Finance protocol uses collateral and reserve factors to manage borrowing limits and interest distribution.
- Liquidation Process: Liquidation occurs when borrow balances exceed collateral limits. A liquidator can absorb the account’s collateral, paying off the debt and returning the remaining balance to the user.
- Diverse Asset Support: Mendi Finance supports various assets through cToken contracts, which represent user balances. Users earn interest through cTokens and can use them as collateral for borrowing within the protocol.
- Governance and Reserves: A portion of interest paid by borrowers is allocated to the protocol’s reserves, which can be managed through the governance system to maintain financial health.
Overview of the MENDI Token
The $MENDI token facilitates decentralized lending and borrowing in the Mendi Finance ecosystem. It allows users to deposit their assets, use them as collateral, and borrow against them.
This functionality makes Mendi Finance a versatile tool for institutions, individuals, and protocols seeking access to financial services on a permissionless and open-source platform.
Within the Mendi Finance ecosystem, MENDI tokens serve several key roles. Users can earn MENDI tokens through staking and borrowing. Staking $MENDI rewards users with additional tokens, while borrowing against collateral also earns MENDI tokens. This incentivizes users to actively participate in the platform and contribute to its liquidity and stability.
Mendi tokens are also part of the Mendi Loyalty Program (MLP), which tracks user activities and distributes rewards.
Although these ERC-20 tokens currently cannot be traded on secondary markets, they represent user participation in the ecosystem. This program ensures that users who stake $MENDI or borrow from lending pools receive fair rewards for their contributions.
In general, the Mendi token plays a vital role in driving user engagement and maintaining the protocol's health.
$MENDI Tokenomics
The $MENDI token's economic model is designed to be fair and transparent. During the Liquidity Generation Event (LGE), users can deposit USDC to receive a proportional share of the $MENDI supply, specifically 3.2% of the total supply.
After the event, participants will claim 3.5% of the total $MENDI supply. USDC proceeds from the LGE and 2.5% of the $MENDI supply will form the $MENDI/USDC pair on Velocore, providing initial liquidity.
Participants receive 28% more tokens than they paid for, with 50% available immediately and the rest vesting over a year.
Here are the details about the MENDI tokens supply and their allocation.
How to Buy MENDI on CoinEx?
CoinEx, a global cryptocurrency exchange trusted by over 6 million users worldwide with a 100% reserve, has recently listed $MENDI tokens amongst its 1000+ supported tokens. To buy and trade $MENDI tokens on CoinEx, follow these steps:
- Sign Up for CoinEx: Begin by creating an account on CoinEx.
- Add Funds to Your Account: After setting up your account, log in and deposit funds supported by CoinEx.
- Go to the $MENDI Token Page: Once your account is funded, visit CoinEx's dedicated $MENDI trading page. Use the search box on the spot trading page and type in "MENDI" to find the trading pairs.
- Select Your Trading Pair: Choose the MENDI/USDT pair to trade $MENDI for USDT (Tether).
- Enter Your Trade Amount: Decide how many $MENDI tokens you want to buy and enter the amount. The trading interface will display the cost at the current market rate.
- Confirm and Execute Your Trade: Review the details of your trade. Once everything is verified, confirm and place your order to buy $MENDI tokens.
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