A team of experienced cryptographers and blockchain experts announced today interest, A value capture lending agreement designed to make DeFi more fair to users.
The new agreement was launched after the most recent round of private financing. The team behind the project raised $6.5 million from top investors, including KR1, DFG, CMS, DigiStrats, FOMOcraft, Bitscale Capital, PNYX Ventures, CMT Digital, and Faculty Capital.
The Minterest protocol provides users with a decentralized token currency market, combined with a unique fair incentive structure, which will promote and promote the widespread adoption of DeFi. It differs from existing DeFi companies in that it is designed from the ground up to capture the value it generates.
By using its own repurchase mechanism, the agreement passes 100% of its revenue to its active participant community. A key component of the architecture is its unique clearing mechanism, which is managed entirely by agreement rather than delegated to external parties.
Lending agreements have produced tremendous value, but traditionally this value has not been passed on to users. Existing lending agreements reward users in two main ways. First, through liquidity mining, various forms of token issuance are used to incentivize usage.
Secondly, through the liquidation process, the process is only applicable to a very small and complex user group who purchases under-collateralized borrowers’ positions at market discounts.
First in the industry, the Minterest protocol automates the liquidation process without the need for external liquidators. Therefore, it captures all fee income, including interest, flash loans and liquidation fees. In other agreements, this income is usually drawn from the network for the benefit of a few people.
Uniquely, Minterest uses its operating surplus to automatically purchase the protocol’s native MNT tokens in the market and then distribute them to its users. This means that the income of protocol users is supplemented by part of the protocol rewards, thereby creating the potential for the highest long-term yield of DeFi.
“The success of the blockchain industry continues to surprise everyone. However, we are increasingly seeing players ignore the original motivation and the reasons that led to the success of the decentralized digital economy. The Minterest protocol recaptures cryptocurrencies. The vision is to create a fairer and more equal financial system through the new DeFi model, which creates value for the entire user ecosystem, rather than extracting value for only a few people, and in doing so, it deliberately challenges Existing industry leaders.”
– Josh Rogers, founder and CEO of Minterest
Minterest was founded by Josh Rogers, a serial technology entrepreneur with more than 25 years of experience as a founder or founding team, including projects such as COMindico, Oriel Communications, Mitchell Morgan, Freelancer, and HeyYou.
The design of the Minterest protocol is based on the principles of flywheel tokenomics, which builds a self-reinforcing value loop in the platform. The more value created and captured in the agreement, the more value is delivered to users, thereby increasing the total annual return (APY).
This makes it more attractive to be a liquidity provider for Minterest, thereby attracting new users, and over time, the overall value of the agreement has grown exponentially.
The Minterest agreement will be audited by well-respected auditors in the blockchain field before its early access stage to consolidate network security and provide users with the confidence needed to participate fully.