Hello 👋
This article brings together everything you need to know before starting lending on Meria.
💡 To see our lending offers, click on the link below:
https://www.meria.com/products?type=lending
1/ What is the difference between APR and APY?
APR (Annual Percentage Rate):
👉 Corresponds to the gross annualized interest rate, i.e. the estimated rewards you may earn.
APY (Annual Percentage Yield):
👉 Corresponds to the gross annualized interest rate + the interest previously received at a defined interval. APY therefore takes into account compound interest.
In other words, the rewards are reinvested in the contract, thereby increasing the size of the position and thus the yield.
Here is the formula for calculating APY:
APY = (1 + (10% / 365))^365 - 1
2/ How do lending products work on Meria?
Cryptoassets placed in a lending product on Meria are deposited on a single protocol only.
To find out which protocol:
Check our lending solutions
Click on the cryptocurrency of your choice
Select “Details on how the service is built”.
👉 The DeFi protocol used is then indicated.
3/ How are my tokens secured?
All funds placed on DeFi protocols and compounders are stored using multi-signature services for enhanced security.
For CeFi platforms, the custody and security of funds are ensured by the platform in question.
4/ How is lending interest paid?
Interest from lending contracts is credited every minute, in the value of the cryptoasset used to subscribe to the contract.
5/ What are the risks associated with lending?
Meria uses various decentralized finance protocols and compounders, as well as centralized platforms.
These platforms are independent from Meria’s control, which cannot be held responsible for any potential failure on their part.
Here is a non-exhaustive list of the main risks associated with lending:
Counterparty risk related to the failure of DeFi (decentralized finance) protocols and compounders and CeFi platforms (centralized finance, such as "Meria", "Binance", etc.).
Risk related to the use of a blockchain (in particular the failure of one of the blockchains used)
Volatility risk of the cryptoassets included in the diversification of the service
Risk of loss of peg (de-peg) of the cryptoassets included in the diversification of the service
Risk related to the liquidity of the cryptoassets
Risk of loss of funds (notably hacking)
Risk related to the economic and financial environment.
Feel free to contact us by clicking on the chat bubble at the bottom right of your screen 😊
See you soon,
The Meria team