Merkle
We allow Uniswap V3 Liquidity provider to Borrow USDC against their positions.
Project Description
Merkle allows UniswapV3 LP holders to borrow USDC against their positions. It is built in a way that anyone can write an "AssetClass" contract that when approved, can be used as collateral in Merkle.
This platform is different than Compound, Aave & others because it allows borrowers to deposit complex assets (and not just tokens).
The first use case of this lending platform is UniswapV3. UniswapV3 LP positions are represented as NFTs, and cannot be deposited in any lending protocol today, however, they hold more than $5B in value. Merkle will allow UniswapV3 liquidity provider to leverage their positions by borrowing against them.
As the DeFi ecosystem evolves and assets become more complex, a lending platform that can accommodate them is needed.
How it's Made
I used hardhat to build my contracts, wagmi to build the UI (with react).
I built 3 contracts in total:
- Controller.sol: Makes sure that borrowers always have enough collateral
- UniswapV3.sol: An asset class that can be deposited for collateral.
- MToken.sol: A ERC-4626 compliant vault where lenders can deposit USDC to be borrowed
