Risk management is the cornerstone of any successful lending protocol. Thoughtful risk parameters can lower borrowing costs while maintaining liquidity, maximize returns for lender LPs, and drive protocol growth through capital efficiency. But when risk parameters are mishandled, the fallout during extreme market events—like terrifying liquidation cascades—can be catastrophic.

The Mendi Finance DAO has passed a vote to upgrade the protocol and become the first Unified Liquidity Lending (ULL) protocol in DeFi. ULL elevates itself above the current “legacy” lending model by creating a truly unified pool of liquidity connecting Mainnet and L2 chains together seamlessly. This tackles the pressing issue of liquidity fragmentation while providing immense value to users by entirely abstracting chains away so they enjoy an outstanding UX.

Who else is tired of dull campaigns and points systems? We sure are. That’s why we’re making a major update to our Mendi Loyalty Points (MLP) system!

The fragmented nature of blockchain ecosystems presents a significant challenge within the industry. Numerous solutions have emerged to address this, aiming to enhance interoperability across different chains. These include enabling interactions with decentralized applications on other chains, facilitating token swaps between disparate chains, and allowing the exchange of native assets for their wrapped counterparts. However, current solutions tend to focus on specific, point-to-point integrations and often target proprietary smart contract endpoints. These approaches lack the more general-purpose ability that is required for truly unifying systems and liquidity.