Introduction

What is Molend?

Molend is a decentralized, non-custodial liquidity market protocol deployed on MODE(the L2 contributing to optimism’s superchain defi ecosystem), where users can participate as depositors or borrowers. The protocol enables depositors to provide liquidity to the market to earn a passive income and borrowers to borrow in an over-collateralized and perpetual fashion.

Why Molend?

Molend provides a platform for mutual financing with the understanding of the capital needs of different users. Molend assists users to make wise decisions based on its display function of a detailed database including assets allocation, historical interest rates, and so on.

Molend supports lending and borrowing between all encrypted assets that meet the homogenized token standard without marginal cost, and automatically calculate and adjust the market lending rate according to market supply and demand. With its ability to shuttle and reuse the same asset in different DeFi protocols by providing deposit certificate tokens, Molend improves its funds efficiency.

Molend supports flash loans, allowing borrowers to borrow immediately without any collateral. Flash loans are widely accepted in situations such as arbitrage between DEXs and lightning liquidation, and bring profits to depositors.

Furthermore, Molend can also be flexibly combined with other DeFi protocols , so as to realize the automatic operation of multi-layer, complex and nested financial transactions.

How to start on Molend?

How do I interact with the Molend protocol?

Like most decentralized finance (DeFi) protocols, Molend is a publicly accessible smart contract system built on top of Mode. Molend works to allow borrowers to take out loans, and lenders to provide loans, by locking its crypto assets in the protocol. The interest rates paid and received by borrowers and lenders are determined by the supply and demand of each crypto asset. Each block is mined to generate an interest rate. Loans can be repaid at any time and locked assets can be withdrawn.

Based on this principle, the apTokens are interest-bearing derivative tokens that are minted and burned upon deposit and redeem, which allows users to earn interest on their own currencies while also being able to transfer, trade and use those currencies in other applications.

How do I transfer tokens to Mode?

Moed is built on the modular OP Stake and is a member of the supperchain alongside Base and OP mainnet. You can use the Mode bridge to deposit and withdraw from Ethereum to Mode. Check out Bridge to Mode.

Is there any risk?

Smart Contracts Risks

The protocol will be interacting with a number of smart contracts, all of which impose risks. This can be both known and unknown risks that could result in the failure or vulnerability of the smart contracts which could result in assets being locked or lost forever.

Liquidation Risks

Assets that are deposited or borrowed on the protocol could fluctuate in value due to the systemic risks of the issuing platforms or market volatility, including the loss of peg of certain pegged assets. This could result in the liquidation or closing of a user's position.

Oracle Risks

Liquidations depend on a live, accurate price feed from oracles. Oracle downtime, incorrect prices, or manipulation can cause wrongful liquidations. We have fallback systems, safety switches, and emergency notification systems in place to mitigate this risk.

Audits

Molend will continuously pursue security audits for the protocol. However, security audits don't eliminate risks completely. Please do not deposit your life savings, or assets you can’t afford to lose, to Molend, especially as a liquidity provider. Find more details about security auditing here.