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Mendi Finance: Farm Crypto Points to the Fullest

By Notum

May 30, 20244 min read



  • Mendi Finance is running on the Linea chain using most of its type-2 zkRollup including  compatibility, speed of transactions, and extra liquidity from mainnet Ethereum;
  • Mendi protocol has a unique tokenomics based on Lynex liquidity layer that makes it possible to earn $oLYNX;
  • To ensure the platform’s growth and development, the team launched their MLP (Mendi Loyalty Program) and Point System. 

About Mendi

Mendi Finance is decentralized lending running on the Linea blockchain. The lending protocol runs on an overcollateralized premise, so users can only borrow less than the value of their collateral.

Lending protocols can help users use their assets to the fullest by supplying them to the protocol and earning an interest rate generated by the revenue generated by borrowers. Users can also get additional leverage by borrowing assets against their collateral and using their funds across different protocols in the DeFi market.

Mendi is a user-oriented platform that provides cross-chain functionality to the new users of the ecosystem. The protocol has an expansive network within Linea;

Why Linea Chain?

Mendi chose Linea Network to provide its users with the best DeFi experience on the market. 

Linea is a Type-2 zkRollup, meaning that:

  • its type-2 EVM compatibility will attract more developers from the wider EVM ecosystem;
  • it is a zkRollup that has instant transaction finality to withdraw assets to the Ethereum chain;
  • this enables zkRollups to attract liquidity from mainnet Ethereum.

Consensys’ record of building within the Ethereum ecosystem, and Linea’s focus on developers’ needs and engagement with their community for future developments, supplied a unique opportunity for growth and feedback. As for Mendi, it provides a secure money market to Linea and helps increase the ecosystem’s usability and capital efficiency.

Loyalty Program & Points System

Mendi's loyalty points system (MLP) strive for fairness when it comes to revenue sharing, as the protocol supports community growth and evolution.

Mendi launched a Loyalty Program to distribute future rewards that Mendi may get by being a part of the Linea ecosystem.

Taking into account the future decentralization of the Linea governance, protocols will be airdropped tokens, similar to what happened in Arbitrum.

Contributors will be rewarded in the fairest way using the Mendi Loyalty Points (MLP). These will be soulbound ERC-20 tokens that will be distributed equally to the users of the lending protocol and the staking protocol.

Users can earn MLP by staking $MENDI or borrowing assets from the Mendi Lending Pools. MLP is issued to users when a milestone is reached.

MLP is distributed:

  • Equally to $MENDI stakers;
  • Equally to borrowers;
  • The more users stake or borrow, the more MLP users get.

The protocol achieves a milestone when each milestone needs to stay above the threshold for 1 week; To measure the total borrows of the protocol on a given day the protocol is using DeFiLlama.

You can check the unlock schedule, both in a table and on a chart:

Source: Mendi Docs

Source: Mendi Docs

Mendi uses soulbound ERC-20 tokens to ensure that these are not traded on the secondary market, as there is no value attributed to them at the moment. The Mendi Loyalty Points help to track the community’s real contribution to the protocol and distribute rewards in the future in a fair way.

The system is designed in a way that aligns with the interests of users. Each user has a shared interest in reaching higher milestones to claim more rewards. 

Investment Strategy

Mendi supports ezETH and weETH as collateral, so users who invest in these tokens can earn additional yield in $MENDI and accumulate points in Eigenlayer, with a 2x point boost on Renzo (or, MLP-L, and LXP-L. Combo! Here is what to do:

  1. If you already have ezETH on other networks, bridge it to Linea here;
  2. Go to Mendi ezETH lending on Notum and choose any token on Linea you want to swap to ezETH. If you already have ezETH on Linea, go to the next step;
  3. Click “Deposit;”
  4. Approve the transaction;
  5. Congrats! You are now earning around 3.2% APR in $MENDI, 2x ezPoints, Eigenlayer points, MLP-L, and LXP-L.

To increase your possibility to get the rewards, we recommend investing from $350 to this strategy. Previous Renzo and Eigenlayer airdrops have shown that this is the optimal minimal amount for those who invest in early stages. In any case, the more liquidity you provide, the greater your chances for substantial airdrops.

Unfortunately, it's difficult to estimate the final return in a specific numerical value because it depends on the conditions presented by Linea, Renzo and Mendi. However, what we do know for sure is that combining ezETH staking and Mendi supply rewards yields approximately 6.4% APR, without factoring in all the points described above. 

Based on data from Pendle Finance, people are expecting the rewards to be at least 20% APR during the second Airdrop from Renzo. Mendi LP and Linea XP have just launched and do not have point markets, Pendle derivatives or announced tokenomics, so the final results may vary a lot. Nonetheless, it is all what we love crypto for: you get unexpectedly high returns from young protocols and Mendi is definitely one of them.

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Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.