After $ 6.5 Million Increase, DeFi Minterest Lending Platform Develops Value Capture Protocol to Make DeFi Fairer
Minterest’s unique design maximizes long-term returns through new, fairer structure
TALLINN from Estonia, September 16, 2021 / PRNewswire / – A seasoned team of cryptographers and blockchain industry luminaries today unveiled Interest, a value-added lending and borrowing protocol designed to make DeFi fairer for users. The revelation of the new protocol follows a recent private fundraiser that saw the team behind the project raise US $ 6.5 million leading investors including KR1, DFG, CMS, DigiStrats, FOMOcraft, Bitscale Capital, PNYX Ventures, CMT Digital and Faculty Capital.
The Minterest Protocol provides users with decentralized token money markets, combined with a unique and fair incentive structure that will facilitate and promote widespread adoption of DeFi. What sets it apart from DeFi incumbents is that it is designed from the ground up to capture the value it generates. Using its own buy-back mechanism, the protocol passes 100% of the income generated to its community of active participants. A key element of this architecture is its unique liquidation mechanism which is fully managed by the protocol rather than being delegated to external parties.
Lending protocols generate significant value, but traditionally this value has not been conveyed to users. Existing loan protocols reward users in two main ways. First, through various forms of issuance of tokens through the extraction of cash to incentivize use. Second, through the liquidation process which is only accessible to a very small and sophisticated group of users who buy back the positions of under-secured borrowers at a market discount.
In an industry first, the Minterest protocol automatically undertakes liquidation processes, without the need for external liquidators, and thereby captures all commission income, including interest, flash loans, and liquidation commission income. On other loan protocols, this income is generally taken from the network for the benefit of a privileged few.
Uniquely, Minterest uses its operating surplus to automatically purchase the protocol’s native MNT token from the marketplace and then distribute it to its users. This means that the revenues of protocol users are supplemented by a portion of the protocol rewards, creating the potential for the highest long-term returns in DeFi.
Josh rogers, Founder and CEO of Minterest said, âThe success of the blockchain industry continues to surprise everyone. However, we are seeing more and more gamers losing sight of the original motivation and what caused such success in decentralized digital economies. The Minterest Protocol takes up crypto’s vision of creating a fairer and more egalitarian financial system with a new DeFi model that generates value for the entire ecosystem of users, instead of extracting it only for a few. uns, and in doing so, it intentionally challenges existing industry leaders.
âDeFi’s current total TVL of almost 170 billions of dollars represents about as little as about 5% of global crypto assets. With significant and sustained crypto growth and the vast majority of crypto value yet to be gained, DeFi is in its infancy and represents a huge opportunity for crypto investors. Today’s DeFi lending and borrowing protocols have inflationary token models, neither capture nor transmit the value generated by the protocol, often lack cross-chain capabilities, and provide an overly complex user experience. Minterest changes that. Through their interactions, users create value on the platform, making their participation fair and rewarding. Without its community, any protocol would be obsolete, and our model places our community at the center of the value creation cycle. ”
The design of the Minterest protocol works on the principle of flywheel tokenomics, creating a self-reinforcing value cycle in the platform. The greater the value created and captured in the protocol, the more value is passed on to users, thus improving the Annual Percentage Return (APY). This makes it more attractive to become a liquidity provider for Minterest, thereby attracting new users and, over time, exponentially increasing the overall value of the protocol.
The Minterest protocol will be audited by reputable auditors in the blockchain space before its early access phase, which underpins network security and gives users the confidence to participate fully.
James Wo, Founder and CEO of Investor Digital Finance Group (DFG) said, âMinterest has made a major improvement to the current DeFi ecosystem by addressing issues that exist in legacy DeFi protocols. Its unique token redemption mechanism using the protocol’s own revenue means that Minterest passes protocol rewards to users for their participation in its governance. It’s the first of its kind in DeFi, and a truly sustainable, long-term model. It’s that kind of innovation that really appeals to us as investors. ”
Eric weiss, a partner of Digital Strategies noted, âWe love that Minterest has taken the original DeFi ecosystem and made it fairer and more inclusive for its users. In doing so, they ensure that the true beneficiaries are the users who share all the revenue generated by the protocol. These unique characteristics make it an attractive platform for everyone in the industry. We are excited to be making the trip with the team and supporting the evolution and growth of the protocol. ”
Minterest was founded by Josh rogers, a serial technology entrepreneur with over 25 years of experience as a founder or as a member of start-up founding teams for projects such as COMindico, the world’s first point-to-point IP telecom; Oriel Communications, the world’s leading micro-billing content engine; Mitchell morgan, a consultancy and financial technology conglomerate comprising a digital agency for online digital platforms; Freelancer, the world’s largest independent job market; and hey you, australia largest home app. The Minterest team is like the who’s who of industry luminaries, with leadership backgrounds from Cardano, Prysm Group, Chainlink and IBM as well as members with elite academic and technological credentials.
Josh rogers, founder of Minterest, is available for an interview
Interest is a unique borrowing / lending protocol designed by industry leaders to serve the billions in Total Locked Value (TVL), in DeFi lending projects, with the specific purpose of putting user benefits at heart of his concerns. It provides users with a decentralized, fair and inclusive financial platform.
The Minterest protocol has the world’s first buy-back mechanism, which automatically passes income on to contributing users of the platform. In this way, users receive protocol income in addition to the highest borrowing / lending rates in the industry, thus creating the potential for the highest long-term returns in DeFi. The protocol also has on-chain treasury that captures and shares liquidation revenue with users.
SOURCE of interest