Minterest – Redefining DeFi
Minterest is a ground-breaking lending protocol built by industry leaders to service billions in TVL, and to challenge existing DeFi incumbents. The protocol captures significantly more surpluses on-chain than any other DeFi protocol, which is an industry first. It passes on these rewards to its users using a unique protocol-managed buyback process. Lending protocols generate significant value, amounting to hundreds of millions in surpluses each year, but traditionally this has not been passed on to users – until now.
Doing things differently
To understand how Minterest does things differently, it’s worth looking at how existing protocols operate in the current DeFi ecosystem. Lending protocols reward users in two key ways. Firstly, through various forms of token issuance which rewards liquidity mining to incentivise protocol use. Secondly, a very small, sophisticated group of users known as liquidators get rewards when they take out the positions of under collateralised borrowers at discounts to market.
Making rewards equitable
In addition to rewards from liquidation fees, protocols generate substantial value in the form of flash loans and interest rate differentials which is the difference between what a lender receives and a borrower pays. A significant amount of this value is generally ‘bled’ off the protocol in various guises, and almost always, solely for the benefit of the protocol’s developers or their shareholders. This means the ecosystem of users who create the protocol’s value don’t directly benefit from such value creation. It is for this reason that the Minterest protocol aims to turn the entire DeFi lending model on its head.
A protocol’s value is generated by the users
Minterest recognises that the value of any protocol is created by the activity of its users and that a platform without users is worthless. The extraordinary market caps of existing DeFi platforms are directly correlated to their significant ecosystems of users, and the value created by their associated TVL. Minterest’s protocol’s rewards have been engineered for the benefit of potentially all users and not just a select few
World ‘s first on-chain treasury
At Minterest’s core are world’s first on-chain treasury functions in which the protocol undertakes processes normally reserved for external third parties. This means Minterest executes liquidation processes automatically, without the need for external liquidators, and by doing so, captures fee income normally lost from the protocol, while additionally capturing interest income and flash loan fee income.
Passing on the rewards to users
Minterest uses this combined surplus to auto-acquire the protocol’s native MNT token on-market and then passes it onto the protocol’s users, particularly rewarding those who supply their liquidity and stake MNT tokens in the protocol’s governance processes over time. There is no time lock, so users may withdraw their assets whenever they wish, but those who provide their liquidity and MNT tokens over time, will receive an ever-increasing loyalty reward i.e., their percentage of the protocol’s rewards increases month to month.
The highest long-term yields in the industry
So why does that matter? It means Minterest delivers the highest long-term yields in DeFi, and the protocol’s design gets real about why DeFi matters– providing equitable and fair finance for all. We are proud we are supporting the crypto community to share in a greater source of value, and that Minterest is the world’s first DeFi protocol to operate such a model. The protocol is also backed by a team of incredible, highly talented crypto investors whose impressive CVs reflect their credentials, know-how and values.So welcome to Minterest, it’s in your best interest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses with users.
10, September 2021