MENDI FINANCE

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In just a few months, @LineaBuild has become one of the most popular #L2 for #DeFi applications (in testnet) I've found @MendiFinance is one of the early native projects (not many) to capture the advantages of the network Let's explore 👇 $MENDI #Linea twitter.com/MendiFinance/status/1674773833981755396

1⃣ What's it? 🔹@MendiFinance aims to be the prime lending platform on @LineaBuild 🔹It's made based on other similar protocols such as @compoundfinance & @AaveAave 🔹But @MendiFinance is special because it promises to give the best rewards & being native to the #Linea

🔹 @MendiFinance is conducting a Liquidity Generation Event (LGE) to kick off the protocol 🔹 The #LGE exists not simply to provide initial liquidity for the system, but also to reward early adopters!

2⃣ Liquidity Generation Event (LGE) 🔹 Summary ▪️ The #LGE is a fair & transparent way to distribute the $MENDI token to early adopters ▪️ Users who deposit $USDC into the LGE contract will earn 28% more than what they deposit

▪️ An additional 0.3% of the total token supply is allocated to first-day depositors ▪️ All proceeds from the LGE will be used to create a MENDI/USDC liquidity pool on @velocorexyz

🔹Deeper analysis ▪️ Upcoming LGE's goal: • To establish ample liquidity for the protocol, thus serving as a strong foundation for its financial stability & growth

▪️ Bonus incentive to early participants • An extra 0.3% of the total tokens are reserved for deposits made on the 1st day, therefore raising the share for depositors to a substantial 3.5% → Encourage early commitment to the LGE, thus amplifying the initiative's initial boost

▪️ LP mechanism • All funds obtained from the LGE are purposed towards the creation of a MENDI/USDC Liquidity Pool (LP) on @velocorexyz → critical milestone in strengthening the protocol's liquidity façade

• The protocol further reassures stable liquidity by locking these funds in the pool for a six-month period → establishing longer-term financial security for the protocol

3⃣ Practical example? Yep 🔹Alice's investment in the $MENDI LGE could provide her with: ▪️ immediate profit & a long-term ▪️ steady revenue stream ▪️ increased influence in the project's future → I think the bellow example will help you comprehend with ease

🔹Alice plans to invest 1000 USDC in the $MENDI liquidity generation event (LGE) ▪️ She can deposit at any time & will receive a proportional share of regular & bonus allocations

🔹Alice's initial investment could represent a 28% increase in $MENDI tokens ▪️ 50% of the reward tokens unlocked immediately after the LGE ▪️ Remainning 50% gradually unlocked over the next year → This means an equivalent of 1280 USDC worth of $MENDI at launch time

🔹LP tokens will be locked in the LGE contract for 180 days to ensure adequate liquidity in the early stages of trading ▪️ After the lock-up period, these tokens will be used for governance strategies

4⃣ Tokenomics 🔹Usecases: LP, Stake, Governance, Rewards 🔹@MendiFinance already made a comprehensive thread expaining token distribution, let’s read it before you move on twitter.com/MendiFinance/status/1676712947031199746

🔹Revenue Sharing ▪️ In the MENDI staking ecosystem, $MENDI can be staked as sMENDI or uMENDI to earn protocol revenues & VC rewards ▪️ 80% of both revenue types are initially distributed to stakers, increasing to 100% once team tokens come into play

5⃣ My thoughts? 🔹I noticed a strong signal that @MendiFinance stands to gain an enthusiastic user base while vaulting its liquidity position by laying the groundwork of liquidity & rewarding user participation generously

→ This LGE reflects a well-planned foundation for the project's future growth & its ambitions within the ever-complex crypto space

6⃣ Try out testnet? 🔹I personally tested @MendiFinance on @LineaBuild 9-week Testnet Voyager 🔹I know the program is already ended, but I recommend you to try the testnet as we can still get early role or maybe the most anticipated #airdrop from #Linea twitter.com/MendiFinance/status/1674405849580830723

7⃣ That’s it! Both Linea & Mendi are on their testnet stage, so make sure you use new wallet to interact to reduce risks involved I wrote about Linea yesterday, you can check all here. twitter.com/Tanaka_L2/status/1678793556285349890

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