Frequently Asked Questions

.   MiniLend is a decentralized lending protocol that allows users to deposit collateral and borrow assets against it. .   Users lock supported digital assets as collateral and can borrow up to a predefined percentage of the collateral’s value (based on the protocol’s collateralization ratio).. .   Interest accrues over time using a linear, per-second model. If the value of the collateral falls below the required safety threshold, the position becomes eligible for liquidation. .   Everything is executed through smart contracts — no intermediaries, no custodians.

.   If your collateral value drops below the required minimum collateral ratio, your position becomes eligible for liquidation. .   A third-party liquidator can repay part or all of your outstanding debt and receive a portion of your collateral at a discounted rate as an incentive.

Liquidation is designed to:

i.   Protect lenders i.   Maintain protocol solvency i.   Prevent bad debt accumulation Users can monitor their health factor in real-time and add more collateral or repay debt to avoid liquidation.

MiniLend is built using battle-tested smart contract design principles, including: Clear separation of concerns in contract architecture Explicit risk parameters (collateral ratios, liquidation thresholds) Strict validation checks on borrowing and repayment Deterministic interest calculation However, as with any decentralized protocol, smart contract risk exists. Users should only deposit assets they understand and are comfortable managing within a decentralized system. (Security audits and formal verification can be added here later if applicable.)

Interest accrues linearly over time on borrowed assets. Instead of compounding per block, MiniLend calculates interest per second based on: The borrowed amount The annual interest rate The time elapsed This approach ensures: Transparent debt growth Predictable repayment calculations Simplified accounting logic Users can view their updated debt at any time directly from the protocol interface.

MiniLend currently supports the following assets: Lending / Borrowing Assets (Stablecoins): USD Coin (USDC) Tether (USDT) Dai (DAI) These assets are supported as borrowable stablecoins within the protocol. Collateral Asset: Ethereum (ETH) Users deposit ETH as collateral and can borrow supported stablecoins against it, subject to the protocol’s collateralization ratio. Stablecoins are used to: Reduce volatility exposure on the debt side Improve capital efficiency Maintain predictable loan valuation Support for additional assets may be introduced in future protocol upgrades based on risk analysis and liquidity considerations.