DeFi Lending Platform Minterest Solves Legacy DeFi Protocol Problem By Improving DeFi Ecosystem

Minterest’s unique design means long-term returns are maximized through a new, fairer structure

[Tallinn, Estonia] A seasoned team of cryptographers and blockchain industry luminaries today unveiled Minterest, 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 enabled the team behind the project to raise US $ 6.5 million from leading investors including KR1, DFG, CMS , DigiStrats, FOMOcraft, Bitscale Capital, PNYX Ventures, CMT Digital and Faculty. Capital city.

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 induce 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 below-market price.

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, “The success of the blockchain industry continues to surprise everyone. Increasingly, however, we are seeing 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.

“DeFi’s current total TVL of nearly $ 170 billion represents only 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 Total 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, “Minterest 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.

저작권자 © Korea IT Times 무단 전재 및 재배포 금지

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