The Minterest Dashboard – A clearer view for users
When you explore DeFi lending, there’s an enormous degree of opacity when it comes to liquidations. Lenders and borrowers are not given enough detailed information to truly understand their risk profile. At best, users are expected to judge what can be very significant and sometimes complex lending portfolios, with a simplistic traffic light risk analysis system. They are expected to use green, orange and red markers to assess their risk profile, without actually truly understanding what the colour codes mean.
The tension between solvency and service
Even a layperson would be able to see that this is not operating in people’s best interests. If you view DeFi lenders through a critical lens, it’s easy to conclude that the major beneficiaries are not the users but a select group who are benefitting from opportunistic liquidation practices.
So why the lack of information? Incumbent DeFi protocols have significant tension between properly serving their users and ensuring protocol solvency. Continued solvency means always having enough liquidators circling the protocol to undertake liquidation events, especially during periods of high price volatility. That means, not just making sure liquidation fees are good enough for liquidators but also ensuring liquidation events consistently occur to ensure there will be a steady flow.
The inclusion of external liquidators surfaces a fundamental conflict; DeFi protocols can’t authentically and committedly protect their users from liquidations because doing this too well, may result in not enough liquidators being available with their liquidity in periods of high price volatility. Not enough liquidators and liquidity being available during such circumstances threatens the protocol’s solvency. Instead, such protocols provide just enough data and functionality to ensure they look like they’re protecting users from liquidations but not enough to really do the job properly. The conflicting nature of such architectural design means its liquidation functions are in themselves predatory and also means that users will likely more often have their portfolios liquidated.
How Minterest eliminates conflict of interest
Minterest eliminates the conflict of interest because there are no external liquidators lurking in the shadows eager to profit from liquidation of user portfolios. The Minterest protocol manages liquidation functions automatically.
The key benefit beyond the protocol capturing all liquidation fee value, is that Minterest doesn’t need a community of liquidators constantly circling it, acting somewhat like DeFi killer whales seeking out weakened seals. It means Minterest can instead authentically serve its users and truly look after their best interests without compromising the protocol’s solvency.
In an industry first, Minterest’s UI includes a full dashboard for each user, providing extensive liquidation risk data and analysis based on their current portfolio and past market history. It even maps out people’s current collateral borrowing positions against previous price volatility, giving real clarity to what their potential future risk positions may be.
Further, as a user proceeds to add more lending or borrowing to their portfolio, the Minterest interface provides a real-time analysis of the risk impact that their planned action will have on their portfolio. This allows users to analyse their plans and make informed decisions about their portfolio risk before they enter new positions. The Minterest protocol is designed and built to serve the interests of its users, with the intention to help them be as successful as possible in their DeFi investments.
Providing Insights into governance rewards systems
Additionally, the dashboard gives users detailed insights into the protocol’s governance rewards system. The protocol passes on 100% of its surpluses in return for users participating in its governance. It does this by using the value it captures from the combination of interest rate, flash loan fees and liquidation surpluses to acquire MNT on-market. The protocol even increases these rewards month on month, rewarding loyalty and incentivising user liquidity provision over the long term, with the dashboard providing both historical and predictive data to further underpin people’s confidence in their decision making processes.
All this adds up to one incredibly valuable proposition, looking after people by giving them greater certainty that the Minterest protocol truly provides them the highest long-term yields in the most secure, sustainable and transparent way possible.
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