XFAI x Mendi — Expediting Mendi’s mission to become king of lending on Linea

Published in
5 min readNov 17, 2023


XFAI partners with Mendi Finance to accelerate lending on Linea

TLDR: XFAI partners with Mendi Finance — a leading decentralized lending platform on Linea which allows users to deposit their assets as collateral to obtain loans and offers APY to lenders, creating an economy of borrowers and lenders and injecting more liquidity into the wider Linea ecosystem. XFAI’s partnership with Mendi establishes an easy route for lenders to liquidate collateral from defaulted loans via the XFAI exchange, and explores creative solutions in which XFAI LP can be used as collateral to obtain easy liquidity.

Mendi — a leader in Lendi(ng)

Mendi has already established themselves as one of the leading lending platforms on Linea, having over $3M of assets flowing through their platform; with $2M of assets currently being borrowed and over $1M in readily available TVL for borrowers to tap into.

With borrowers already being able to access quick liquidity of USDC, USDT, wETH and DAI, and lenders being able to make a sustainable APY for making their assets able to be borrowed, Mendi is fostering a charge to bolster activity on the Linea ecosystem with access to fast liquidity for borrowers and giving lenders new earning opportunities and high value collateral as a surety.

XFAI x Mendi

With Mendi’s vision of creating the most efficient and viable lending market on Linea, there is a need for them to be able to offer lenders on their platform an easy way to liquidate collateral when a borrower defaults on their loan. That’s where XFAI comes in, as one key element of the partnership between Mendi and XFAI means that Mendi will be able to leverage XFAI’s Swap APIs as an easy route for their user base to cash in on their collateral.

“Money markets and DEXs are a crucial part of DeFi ecosystems since their inception. Further enabling leverage by new products is crucial to deepen the liquidity and provide a streamlined UX during the early stages of the Linea zkRollup’s adoption ”

  • Borna, Chief Mountaineer, Mendi Finance

By joining forces with XFAI, Mendi have forged a partnership which empowers them to enable wBTC to be used as collateral for obtaining loans on Mendi in addition to the currently offered USDC, USDT, wETH and DAI, as lenders will now be able to liquidate any defaulted wBTC collateral through XFAI’s deep wBTC pool (which holds the largest wBTC TVL across all of Linea), opening up a new market for liquidity on Mendi and growing their user base through their now expanded offerings.

In addition to enabling wBTC to be liquidated through XFAI’s exchange, XFAI and Mendi are exploring ways in which XFAI LP tokens can be used as collateral to obtain liquidity on Linea. XFAI and Mendi will be exploring this use case first in XFAI’s wBTC-ETH LP, creating a market in which wBTC-ETH LP can be used to obtain an over collateralized loan for a quick injection of liquidity in USDT, USDC, wETH, DAI and wBTC. In case of liquidation, LP liquidators would redeem the underlying tokens and then swap those, instead of directly swapping LP tokens, all of which will be facilitated through XFAI’s deep wBTC pool, creating a more efficient and safer route for obtaining liquidity and liquidating defaulted collateral.

As XFAI attracts more liquidity, it opens up more opportunities to deepen the long term relationship between XFAI and Mendi, with more of XFAI’s deep pools being able to be leveraged to support liquidations through Mendi, and exploration into enabling more LP from XFAI to be used as collateral for obtaining loans on Mendi, creating a partnership that will grow in line as both protocols continue to develop and expand.

Establishing XFAI as the most exceptional exchange on Linea

This partnership with Mendi is the first of many in which XFAI’s swap API and LP will be utilized by other protocols, leveraging XFAI unique design and deep liquidity pools to achieve the most desirable swap results on Linea. XFAI has already attracted a sizable share of the total TVL currently on Linea, and by joining forces with Mendi — which will drive more fees to XFAI and give more utility to XFAI LP — we’re giving even more reasons for liquidity providers to deposit their assets on to XFAI.

“Leverage is the future of trading. The combination of XFAI’s unique architecture and Mendi’s approach will usher in an era of leverage on Linea”

  • Taulant Ramabaja, Chief Scientist, XFAI

By partnering with Mendi, we are giving more credence to the architecture of XFAI and starting the charge of establishing ourselves as one of the leading exchanges on Linea. This partnership is the first of many underway that means XFAI will become a backbone of DeFi on Linea, allowing projects utilizing XFAI to grow at scale by leveraging the deepest concentrated liquidity pools on Linea. We’re looking forward to spurring growth on the Linea ecosystem, and we’re incredibly excited to partner with Mendi in making their decentralized lending easier than ever.

Until next time XForce — we continue to build; this is just the start of our movement on Linea. As always, the DeFi revolution marches on! Viva La XFAI.

About Mendi

Mendi Finance is an EVM compatible lending/borrowing protocol on Linea. Mendi Finance provides peer-to-peer lending solutions that are fully decentralized, transparent and non-custodial.

Mendi Finance has a specific focus on bringing new and secure opportunities to its community. We are specifically focusing on enabling LP collaterals through our product partnerships and bringing RWAs to the lending protocol once secure and robust on-chain architecture is built around these new assets.

About XFAI

XFAI is a new breed of Decentralized Exchange with a new double weighted constant market maker design, enabling better swaps for all tokens & better returns for stakers & LPs. XFAI solves the problem of fragmented liquidity, with singular token pools for assets, meaning concentrated liquidity, thanks to unique architecture which enables every token to be immediately swappable with every other token in a single hop swap, with minimal slippage and better price discovery for long tail tokens.

To stay up to date with the latest on everything XFAI, follow us on X/Twitter and keep an eye on our Telegram Announcements Channel for the most recent updates. You can join our Community in leading the DeFi revolution on Linea.




XFai develops tooling for the DeFi space – we graph the DeFi space to build game-changing products. Starting with the DLO: the DEX Liquidity Oracle