> For the complete documentation index, see [llms.txt](https://degenverse.gitbook.io/degenverse-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://degenverse.gitbook.io/degenverse-docs/memecoin-staking-and-lending/memecoin-lending-market.md).

# Memecoin Lending Market

DegenVerse adopts a more flexible and secure lending mechanism, offering an innovative “non-liquidation lending + intelligent risk management” model. This lowers user borrowing risks while increasing capital efficiency.

1. **Dual-Mode Lending** DegenVerse’s lending market offers two modes:

* **Conventional Lending (Over-Collateralization):** Suitable for relatively stable market conditions. The Loan-to-Value (LTV) ratio is set between 50%-70%. Users collateralize Memecoins to borrow USDT, ETH, or $DGEN.
* **Non-Liquidation Lending:** DegenVerse’s proprietary intelligent leverage mechanism allows users to automatically pledge more assets if the market experiences high volatility, reducing the risk of liquidation.

1. I**ntelligent Risk Control + Automatic Risk Adjustment** The lending market employs an intelligent risk control system to ensure market stability:

* **Dynamic LTV Mechanism:** Maximum borrowing limits are automatically adjusted according to market volatility, lowering liquidation risks.
* **Lending Insurance Fund:** A dedicated risk buffer fund partially compensates users if market prices experience extreme fluctuations.
* **Intelligent Alert System:** Users can set custom borrowing alert thresholds. When LTV approaches the liquidation point, the system sends notifications and can automatically adjust collateral ratios.

1. **Community Lending** DegenVerse allows peer-to-peer (P2P) lending:

* Users can publish loan requests specifying t**he amount, interest rate, and term,** while other users directly provide funds.
* **Smart Matching:** The system automatically pairs the most suitable borrowers and lenders, enhancing capital utilization.