🤫What is Middle Lend?

The leading lending protocol

Middle Lend stands as a decentralized lending and borrowing protocol, supported across multiple chains, fostering Peer-to-Pool interactions.

Its key distinction from non-custodial liquidity protocols lies in enabling users not only to participate as suppliers or borrowers for liquidity and passive income but also allowing their idle funds to be directly loaned to collateral holders through LPs, thus establishing a fresh perspective on the money market.

How Middle Lend works

Middle Lend introduces permissionless pooled lending through an innovative two-tier architecture.

Here's an overview of how it operates:

Tier 1: Isolated Lending Pairs

Each isolated lending pair within Middle Lend is a small-scale lending market featuring a solitary lending asset and a single collateral asset. For example, one such pair might exclusively facilitate lending or borrowing in USDC, using only ETH as collateral.

These isolated lending pairs remain distinct, ensuring that a user engaged in one isolate doesn't hold exposure to another. They are simple, immutable, and created in a permissionless manner, similar in technical structure to Fraxlend. While the concept of isolation isn't groundbreaking and exists in current isolated lending protocols, the innovation within Middle Lend lies in its unique approach to preventing liquidity fragmentation. This is where the aggregation layer plays a pivotal role.

Tier 2: Aggregators

In the second layer of Middle Lend, aggregators facilitate the transfer of funds among isolated lending pairs. Users lend a single asset to a Yearn V3 lending optimizer, which then places these assets into approved isolated lending pairs. Each aggregator autonomously allocates the lent assets across these approved isolated lending pairs to maximize yield. Users participating in lending to the aggregator remain exclusively exposed to the collateral types they've selected, without any exposure to other isolated lending pairs or collateral assets.