Blend is a DeFi protocol primitive on Stellar that enables permissionless creation of isolated lending pools with customizable parameters, backstop modules for risk mitigation, and BLND token governance. The article explains Blend's core components and highlights its integration with Meru wallet to provide financial inclusion for Latin American freelancers and SMEs.
Blend is a foundational DeFi protocol built on Stellar that allows users to create efficient lending pools where participants can deposit assets to earn interest or borrow using collateral. The protocol features isolated lending pools (ensuring one pool's risks don't affect others), a backstop module that acts as first-loss capital with an 80/20 BLND:USDC AMM structure, customizable pool parameters set by creators, and BLND governance tokens distributed to participants. The article details how Blend integrates with Meru, a Stellar Community Fund-backed non-custodial wallet serving Latin American SMEs and freelancers, enabling them to earn yield on assets while accessing cross-border payment solutions. Blend's design prioritizes user protection through collateral utilization caps, oracle selection flexibility, and the backstop module's emergency fund mechanism, positioning it as a tool for financial inclusion in emerging markets.
