Introduction
Minterest is a decentralized lending protocol with a unique economic model. It captures more fees than any other lending protocol and redistributes them as rewards to users who contribute to its governance, offering the highest long-term yields.
Features
Minterest allows users to deposit tokens into its markets to earn interest. These users, known as liquidity providers, can also borrow tokens but must provide collateral. Users earn Minterest’s native governance token, MINTY, as rewards for both supplying and borrowing assets. Borrowers pay fees for various functions, and Minterest captures all possible fees, including those from interest rates, auto-liquidations, and flash loans.
The protocol uses fees to buy MINTY on the market, which it distributes as rewards to users participating in governance. A portion of these rewards is kept in a Strategic Reserve for future protocol development. Key features include an automated solvency engine for liquidations, buyback mechanisms, and dynamically weighted voting rights to encourage long-term governance participation.
Minterest’s innovative model aims to generate strong network effects, offering the highest long-term annual percentage yields (APYs) to users. It employs a cross-chain strategy to enhance liquidity, user access, and network security, promoting broader adoption within the DeFi ecosystem. This document explains how Minterest achieves these outcomes and outlines its contributions to the future development of DeFi and the broader blockchain economy.
