The mefi Dapp — Everything from A to Z

It’s been a little over a week since we successfully launched the Meme Finance dapp. Since then, we’ve made some upgrades and improvements on the back end, so we felt it was necessary to take a deep dive into its features and how it functions.

Click HERE to access the dapp.

But before we get any further, we wanted to announce that $SHIB, $BONE, $ELON and the $mefi token have all been added to the dapp! These are just the first of many additions to our protocol.

Overview

To use the dapp, you need to connect your MetaMask wallet by clicking the ‘Connect’ button in the top right of the user interface. Note: Make sure you are on the Ethereum network.

The dapp has two main sections: ‘Your Supplies’ and ‘Collateral Tokens.’

Your active loans will be shown under ‘Your Supplies.’ Each loan will show which token you used as collateral, how much ETH was loaned, the amount of ETH plus interest that must be repaid and how much time is left on the loan.

Loans are initiated in the ‘Collateral Tokens’ section. This section includes the tokens supported by the dapp, borrowing period options, how much ETH you’ll receive based on your collateral’s valuation and the interest applied to the loan.

Important Details

Borrowing Periods
Users can select either a 12-hour or 24-hour borrowing period if using a newer meme coin as collateral.

Longer borrowing periods of 2 days and 4 days are available for legacy meme coins and the $mefi token.

Minimum / Maximum Loan
Users can borrow between 0.1 and 1 ETH. It is imperative the user provides enough collateral for at least 0.1 ETH.

Collateral Valuation
Eligible $mefi holders will be able to borrow ETH at 75% of the collateral’s valuation. Eligibility is determined by the amount of $mefi tokens held by the user, which is detected by our smart contract as soon as the user connects to the dapp. This is an adjustable figure.

Non-holders will receive ETH at 40% of their collateral’s valuation for the 12-hour time periods, 20% for the 24-hour period, 35% for the 2-day period and 20% for the 4-day period. The only exception to this is if the borrower is supplying the $mefi token, in which case they will receive 50% for the 2-day period and 25% for the 4-day period.

Interest Rates
A 4% interest rate is applied to the 12-hour and 2-day loan, and a 7% interest rate is applied to the 24-hour and 4-day loan.

$mefi token holders are not required to pay any interest on the borrowed ETH. As stated previously, the smart contract automatically detects if a connected wallet holds the $mefi token.

Liquidation
The smart contract will auto-liquidate the provided collateral if the borrower does not repay the loaned amount plus interest, if applicable, within the specified time frame. This process occurs immediately after the timer for the repayment window reaches zero.

Once liquidated, the collateral gets sold for ETH — 50% of which gets added to the smart contract for lending, and 50% distributed equally among $mefi holders (distribution will occur once we’ve collected a certain amount of ETH).

Supported Tokens
As of this writing, the protocol supports 11 ERC-20 tokens for use as collateral. We established the following criteria when selecting our first crop of tokens to support:

• Market Cap: >$4 million
• Liquidity: >$400,000
• Solid team constantly developing the project and its utility
• Healthy number of holders with well distributed token allocation
• Strong and active community

All projects will need to meet this criteria before their token will be supported by the dapp.

Each token has its own unique tax structure, falling into one of three categories: zero tax, buy/sell tax and buy/sell/transfer tax. We will continue to update our whitepaper with supported tokens.

IMPORTANT NOTE: Borrowers will only “lose” a portion of their collateral if the collateral has a transfer tax. When using the dapp, the tokens are transferred from the user’s wallet to the smart contract. That transfer tax would also be applied when the collateral is returned from the smart contract back to the user’s wallet.

How to Borrow

1. Click ‘Supply’ next to the desired token and time frame.
2. In the window that pops up, input the amount of collateral you would like to provide under ‘[Token] Balance’ or the amount of ETH you would like to borrow under ‘You will get’ (remember, this value must be between 0.1 and 1 ETH).
3. Click ‘Approve’
4. Approve the transaction in your MetaMask wallet and wait for transaction confirmation.
5. Click ‘Supply’ and confirm the transaction in your MetaMask.

After the transaction is confirmed, the provided collateral will be sent to the contract and the loaned ETH will be sent to your wallet. You will then see your loan and all associated information listed under ‘Your Supplies’ on the dapp.

How to Repay the Loan

1. Under ‘Your Supplies,’ click ‘Payback.’
2. Approve the transaction in your MetaMask wallet.

The smart contract will then automatically deduct the loaned amount of ETH plus interest, if applicable, from your wallet and return your collateral.

REMINDER: You must repay the loan before the timer reaches zero, or your collateral will be liquidated.

What’s to Come

Adding $SHIB, $BONE, $ELON and the $mefi token as supported tokens was another milestone for our team. As we mentioned previously, $mefi holders will soon be able to participate in the Meme Finance DAO and vote on new projects to add to our dapp.

We’re now shifting more of our focus to some of the additional features we’ve mentioned in past articles. First on our list is giving users the ability to lend their own ETH to the borrowing pool. Specifics are still being finalized , but lenders can expect to receive a portion of the interest from the loan.

We will also be implementing a price-based liquidation feature in a future update. Again, specifics are still being worked out, but the thought right now is to have the smart contract trigger the liquidation process when the provided collateral token drops ≥50% in value. In this scenario, mefi will have an additional 10% gain, 5% of which would be distributed to all $mefi token holders.

On another note, we have contacted several companies to have a full audit of the $mefi token and dapp contract. Stay tuned for updates.

Finally, for some more exciting news to share, $mefi has been listed on CoinMarketCap!

We appreciate everyone who has provided feedback — good or bad — so far. It’s helped us improve our product, and it’s ultimately our goal to provide the best product possible. Please continue to send in any and all suggestions to the team in our Telegram channel.

-mefi team

Official Links

Website: https://www.memefinances.com/
Dapp: https://mefidapp.io/#/dashboard
Contract: https://etherscan.io/token/0xe13879194578c6f1a591a96c45b65022c43cec07
Whitepaper: https://meme-finance.gitbook.io/whitepaper/
Twitter: https://twitter.com/memefinances
Telegram: https://t.me/mefiPortal
CoinGecko: The meme finance Price in USD: MEFI Live Price Chart & News | CoinGecko
CoinMarketCap: https://coinmarketcap.com/currencies/the-meme-finance/