Lend is a simple and safe deposit method that allows you to deposit only one asset and earn interest income in return. Once a user deposits MATIC in a lending pool, you can earn interest as a form of MATIC based on real-time returns. In addition, it distributes additional MESH rewards based on the liquidity supply contribution of a lending pool depositor as well as deposit revenue, providing higher returns than any single asset depository service or protocol in the digital asset market.
Lender’s deposit income (interest) is generated from the interaction with the leveraged farming pool which is another deposit service in Meshswap. As a leverage farmer’s borrowing interest is distributed back to a lender, the more active assets deposited in a lending pool are used for leverage farm, resulting in a higher deposit yield on the lending pool.
On a Lend-Leverage farm interaction structure, lending and borrowing, interest payment, and asset return proceed safely with automated smart contracts. In addition, Meshswap manages a separate Safety Fund related to lending on its own in order to safely manage the assets and profits of a lender. The safety fund is a rainy day fund accumulated from leverage farmers who have exceeded a certain level of safety standard. And in the event of contingencies in which a lending pool asset utilized by leverage farmers cannot be returned, the Safety Fund will be used to cover the shortage instead. As a result, a lender can safely enjoy opportunities to generate profits by minimizing the asset loss risk.