Why Minterest is Holding a Community Allocation Event
While there is a lot of excitement around the Minterest Community Allocation Event (CAE), there has also been a lot of questions. So I thought It would be a good idea to give you an overview of our thinking around it.
Firstly, it’s important to know that the CAE was not intended to be Minterest’s key fund-raising event which is why the CAE hasn’t been promoted widely on social media. The CAE’s fundamental purpose is to support our community of smaller participants. It is often the case that smaller users get locked out of participating in allocation events, and due to the fact that we have put our community at the core of everything we do, we wanted to walk the talk by making it fair and equitable.
The challenge we faced was “how do we support the requirements of Minterest, while also addressing the inclusion of smaller participants?”. The answer has two elements – allocation and price.
AllocationFor smaller supporters allocation is often an impossible dream. IDOs for example, are not intended as key fund-raising events either, but instead they are low cost community building exercises. Usually, the community around an IDO platform piles into the project chasing tiny allocations which they almost never receive. The smaller participant shares a very common frustration; being promised much and delivered little.
PriceMinterest is using an LBP to conduct its fundraise. LBPs are considered the fairest form of fundraising, given that anyone may participate and buy as much as they want, but once again, they are often intimidating for smaller supporters given their pricing mechanics. People can be uncertain about when and at what price they should buy, given the inevitable FOMO on accessing a potentially better price later. Ensuring that all participants can get the same allocation and at the same lowest price in Minterest’s LBP, was our way of delivering on our promise of a fairer, more inclusive DeFi ecosystem.
Why care about smaller participants if Minterest’s liquidity will mostly be provided by large players?The short answer is long term sustainability, global businesses do not get built overnight and while rapid global growth is appealing and desirable, sustainable businesses grow over time, and this is why small participants matter to Minterest.
Trust – not just lip serviceWhen it comes to people’s assets we are acutely aware that brand and trust really matter. People are faced with plenty of less than honourable projects, offering ridiculous returns wrapped in short-term unsustainable strategies. However those models and returns are like sandhills, they are likely to move or disappear overnight. One day everyone will wake up thinking, “Where did all the crazy stuff go?” and when they do, Minterest will be there, consistently and reliably growing wealth for its community.
From acorns to oak treesOak trees grow from acorns. In crypto, the number of emerging large investors has grown rapidly, but this pool is finite and limited. Minterest recognises that their future lives in the acorns, the billions of people who want to sustainably grow their wealth in a safe and fair ecosystem. Minterest wants to be there for smaller participants now, and in the future, supporting them in their journey.
Is this rational strategically sound?Yes, and it’s one way Aave has outcompeted Compound in achieving market dominance. There have been other more significant factors but Aave has been much more inclusive and community centric from inception and has been rewarded for doing so, as its community has grown both in size and asset wealth.
So this should answer your questions on why a CAE, it’s for you, our valued supporters and we are excited about building a world class protocol that truly delivers on our vision of fairer finance for all.
So welcome to Minterest, 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. It is a decentralised financial platform that is fair and inclusive, with the specific aim of putting user benefits at its core.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on protocol surplus to contributing platform users. This way, users receive protocol surplus 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 shares liquidation revenues with users.
17, December 2021