How does Meria's Stablecoins lending service work?

Meria's Stablecoins 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 Stablecoins 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 on which your stablecoins are distributed, 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: stablecoin diversification

The subscription stablecoin (investment or deposit) is converted into one or more of the following cryptoassets:

BUSD (Binance USD)

DAI (Dai)
FRAX (Frax)
GUSD (Gemini Dollar)
SUSD (sUSD)
TUSD (TrueUSD)
USDC (USD Coin)
USDP (Pax Dollar)
USDT (Tether)

NB: diversification is not necessarily carried out on all stablecoins constantly.

*CeFi platforms do not disclose the actual distribution of the stablecoin.

Component 3: maximum exposure to a stablecoin

Maximum exposure to a stablecoin is determined by anticipating a scenario in which all liquidity pools containing that stablecoin would be totally unbalanced, as well as all funds deposited on CeFi platforms (whose actual distribution we do not know). This is therefore the maximum possible exposure to each stablecoin, taking into account the distribution of protocols, compounders and CeFI platforms at the time of calculation.

Consider the following diversification:

30% of the funds invested in a USDT-USDC pool
15% on a USDT-DAI-USDC pool
25% in a pool containing only DAI
10% in USDP and 10% in TUSD on a CeFi platform (whose asset diversification we do not know)
10% in BUSD on a CeFI platform (for which we know the asset diversification)

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

60% DAI
65% USDC
65% USDT
20% USDP
20% TUSD
30% BUSD