How does Meria's ETH lending service work ?

Meria's ETH lending service adopts a risk-based rather than a return-based approach.

The goal is to maintain a consistent balance between exposure and risk, rather than trying to maintain a fixed return.

By opting for Meria's ETH lending service, you give Meria the order to invest your cryptoassets in line with the following components:

Component 1: Diversification of DeFi protocols, compounders and CeFi platforms, in accordance with our terms and conditions:

DeFi protocols:

AAVE,

AAVE AMM,

Compound,

Curve,

Pancake Swap,

Sushi Swap

Compounders (DeFi) :

Convex,

StakeDAO

CeFi platforms:

Binance,
Nexo,
Woorton

To mitigate counterparty risk, Meria places no more than 30% of cryptoassets on a single DeFi/compounder protocol. Also, exposure to CeFi* platforms is limited to 30%.

Component 2: Diversification of cryptoassets

Diversification of the counterparties used also implies the conversion of the subscription cryptoasset into one or more of the following cryptoassets:

ETH

sETH

stETH

WETH

*As CeFi platforms do not communicate the actual distribution of the deposited cryptoasset, Meria can only assume that it is not converted by the platform.

Whether you subscribe in fiat currency or ETH (investment or deposit), your capital is split between several of these cryptoassets.

NB: diversification is not necessarily achieved across all cryptoactives at all times.

Component 3: Maximum exposure to a cryptoasset

Maximum exposure to a cryptoasset is determined by anticipating a scenario where all liquidity pools containing that cryptoasset would be totally unbalanced, as well as all funds deposited on CeFi platforms (whose actual distribution is unknown to us). This is therefore the maximum possible exposure to each cryptoasset, taking into account the distribution of protocols, compounders and CeFI platforms at the time of calculation.

Let's consider the following diversification:

20% of the funds invested in an ETH-stETH pool

20% on an ETH-sETH pool

30% on a pool containing only ETH

30% in ETH on a CeFi platform (whose asset diversification is unknown)

The assumed maximum exposure to each cryptoasset would be as follows:

100% ETH

50% stETH

50% sETH