FAQ
Where do I receive the notifications?
You will receive the notifications on your MetaMask browser extension.
Will the notification arrive on mobile as well?
MetaMask mobile app does not supports Snaps at the moment. If MetaMask extends Snap support to the mobile version, notifications can be received on your phone as well.
How to install the Mendi Finance Liquidation Alert Snap?
Stay on top of your borrowing with timely notifications sent directly via MetaMask Snap.
Notifications are delivered exclusively through MetaMask's web browser extension.
To enable borrow limit notifications, you first need to install and connect MetaMask Snap.
Step 1: Install Mendi Finance Snap
Follow the on-screen instructions to complete the installation.
Step 2: Connect to your MetaMask
After installation, connect the Snap to your MetaMask account.
You’ll be prompted to grant the necessary permissions to activate the Snap.
Once installation and connection are complete, you’ll be able to set up notifications for your borrow limit.
For more information please visit MetaMask Snaps Directory.
Is there a latency in the system or will I get notified instantly when my borrow cap reaches the threshold?
There is a slight latency with queries, but it is minimal and you should not get liquidated during this if you have enough of a buffer.
If you are setting up volatile positions very close to the borrow limit you should consider setting up the queries and automatically adjust your position by direct contract calls instead of manually adjusting it after the notifications.
What is a suitable borrow limit and notification frequency?
The borrow limit for alerts depends on multiple factors, but you can follow the following guide to benchmark your preference.
Mendi Finance only provides the functionality to help users, and in the end its each users decision to calculate their alerts based on their risk preferences.
Recursive Lending Positions:
Price movements do not affect these positions as you are supplying and borrowing the same asset. Liquidations occur as the borrow interest rate increases the outstanding debt and slowly moves the position over the borrow limit.
You should calculate with a worst case sudden increase of borrow interests enough delay between the notification and the potential liquidation to be able to adjust your position in time.
Leveraged (Re)Staking Positions
SLASHING RISKS
LRTs and LSTs both appreciate in value as long as a slashing event does not occur for the underlying protocol.
For LSTs slashing can occur when a validator that is being run by the LST team is slashed by the Ethereum chain for incorrectly validating blocks. The ETH staked in such validator would be lost to the protocol and the new price of the LST would be calculated by LST_TotalSupply/(Underlying_ETH-Slashed_ETH).
For LRTs slashing can occur like it does for LSTs plus it can happen if one of the staked AVSs on EigenLayer slashes a validator that is being run by the LRT team. The requirements for slashing events are different on each AVS secured by the LRT the user decides to debosit.
Here we need to differentiate between LRTs and LSTs on Mendi Finance. The wstETH LST market uses market pricing which results in deviations between the supplied wstETH and supplied ETH. As the liquidity is deep for Lido's wstETH it is preferable to use market pricing to avoid issues where the contract displayed value deviates due to unintended vulnerabilities in the contract.
Here it is advisable to study the Chainlink wstETH feed and its deviation from ETH feed to calculate a safety benchmark.
For LRTs we are using exchange feeds due to less liquidity. That means as long as LRTs continue to appreciate price movements can't lead to liquidations similar to Recursive Lending and the user should take into account their borrow interest rate to calculate safety benchmark.
Margin Position
Mendi Finance users can create margin positions on the platform by supplying and borrowing non-correlated assets. The supplied asset is longed while the borrowed assets are shorted. For example a position of wBTC supply and USDC borrow is considered a long BTC position. Leveraging by resupplying the borrowed USDC as wBTC is also possible.
Users need to consider volatility and price movements of the past for setting up their notifications.
What are custom RPCs and why should I set them?
RPCs are used to query data from the blockchain, your MetaMask has an RPC URL set for each chain by default. In the Snap you have the option to add custom RPC URLs which provide a more robust underlying setup to ensure with a higher certainty that the notification will be delivered to your browser extension.
Public RPC endpoint that are used by many users can experience failure. To avoid that consider setting up a free account on services such as Infura, Alchemy and others to have a private endpoint for more robustness. For an individual user the Snap will not exceed a limit of a free account for requests.
We are working with built-in redundancy, meaning that with multiple endpoints the Snap will default to a secondary RPC for querying Linea data to check users borrow limit.
Our default setup uses the following public endpoints for users:
'https://rpc.linea.build', 'https://1rpc.io/linea'
Is it advised to set-up custom RPCs?
The public endpoints have been designed for high throughput and they perform well with high uptime. However they do not guarantee 100% uptime and 100% performance, and for this reason we encourage users to set up RPC endpoints on different RPC providers for redundancy and use those custom endpoints. These endpoints don't serve the same traffic and there is a smaller chance of downtime or issues with the calls.
Where do I find RPC providers for Linea?
We recommend checking out Infura, Alchemy and other different service providers. They generally offer free accounts which should serve individual users well. This is of course subject to change by the provider, you can find the information on their website.
https://docs.linea.build/developers/tooling/node-providers You can find a comprehensive list of RPC providers or choose to set up your own node for querying data.
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