How Minterest’s model encourages long-term participation

High yield and eye-catching rewards are no longer enough to get real value in DeFi in 2024. Minterest has developed Web3’s first lending protocol that encourages long-term participation. 

Keep reading to learn how we’ve created a protocol where true supporters get maximum rewards.

100% of fees return to users

Unlike other lending protocols in the market, Minterest revolutionises the DeFi space by capturing 100% of protocol fee value through more means than any other lending protocol:

• Interest Rate Spread
• Flash Loans
• Minterest’s exclusive solvency engine. 

This approach maximises efficiency in value capture, increasing rewards for lending while reducing the effective cost of borrowing. By redirecting all captured fees to Minterest users, we encourage them to remain active on the platform.

TVL drives rewards

As Minterest’s TVL grows it can create a positive feedback loop since increasing TVL generates more fees, fees generate greater buy back, greater buy back provides greater rewards for users, and thus attracts further liquidity. This cycle of growth improves the net yields for both lenders and borrowers, drives sustainable tokenomics, and increases rewards to strengthen users’ loyalty to Minterest.

Governance rewards

Governance rewards are the key to protocol value in the Minterest model. Minterest governance rewards are directly connected and sourced from the buyback mechanism. The longer users stake $MINTY, the more incentives and governance weight they receive in voting rights based on a loyalty boost, rewarding long term active participation in the governance process. 

This voting right and reward system enriches the governance process and ensures that true Minterest supporters are given generous yields and bonuses.

Strategic reserve

The Strategic Reserve is a treasury of $MINTY tokens to be utilised by the future Minterest DAO to support the protocol’s growth. 

A portion of the Strategic Reserve is staked and grows. The rewards can be used by the Minterest DAO in a multitude of ways via fiscal and monetary policy-inspired levers to benefit the protocol and its users including, but not limited to:

• Growth: The DAO can utilise treasury earned from the buyback to fund new developments beneficial to the community. 
• Token supply management: The DAO can elect to stake and lock any buyback tokens away to reduce on-market supply. 
• Refresh emissions: As opposed to other lending protocols that run out of token emissions, Minterest can utilise Strategic Reserve earnings to recycle them back into emissions to continue providing greater rewards than other protocols.

Minterest NFTs

Minterest NFTs provide a unique use case in DeFi as a core of the protocol. 3000 NFTs span across 12 levels, each granting a holder a different perk. The main utility of the NFT is the emission booster granted to the holder, increasing yields by up to 50% depending on the tier. 

NFTs attract early adopters to Minterest, bootstrap liquidity, encourage education and loyalty to the protocol. Minterest NFTs fulfil a multi-layered mission as they increase emission rewards, effectively boosting the amount of $MINTY staked in governance, which in turn increases governance rewards received from the buyback mechanism. 

Learn more about Minterest NFTs here, check out the beautiful Minterest NFT Gallery and get started on your collection on OpenSea and stay tuned for the upcoming Minterest NFT collection launch on Mintle. 

Wrapping up

Minterest creates an economic model that rewards long-term engagement and participation. Through its solvency engine, governance rewards, strategic reserve, and the resulting token scarcity, Minterest has developed a seamless ecosystem that incentivises users to invest in the platform’s future.  

Start your Minterest journey on Telegram, Discord and Twitter.

18, April 2024