The Tsukiyomi Group is proud to announce a new strategic investment in the Minterest project.
Minterest is a DeFi lending protocol that focuses on getting its lenders high-yielding interest rates. Unlike other DeFi lending protocols, Minterest distributes all of the profit generated through interest rates, flash loans, and liquidation fees to the users lending assets to the protocol. Minterest claims this process should result in the highest long-term yields of any DeFi lending protocol.
The protocol utilizes its own decentralized token money market and fair incentives structure to maximize revenue. This revenue is then passed to Minterest’s buy-back mechanism of $MNT tokens. Finally, these $MNT tokens are distributed to its community of users who are actively participating in the protocol’s governance process and by contributing to the token’s liquidity.
This process has multiple advantages to making Minterest a more successful protocol. First, Minterest’s own on-chain liquidation mechanism maximizes revenue to pay back to users. Minterest’s buy-back mechanism puts positive pressure on the price of its token, $MNT, because it reduces the supply of tokens from circulation. The distribution process then incentivizes users to be active in the protocol’s governance process to receive the highest yields. It also incentivizes users to provide liquidity for the token. These processes should naturally push the Minterest protocol to thrive for the long term.
Till this point, DeFi protocols have externalized the liquidation process to separate 3rd parties. This is an issue because it incentives those 3rd party liquidators to take a more predatory stance. This comes at the cost of the lenders. When a borrower’s collateral falls below its threshold, the liquidators repay the loan to the lender and keep the collateral. The problem with this system is that those 3rd party liquidators keep a portion of the money paid back as a fee.
The Minterest protocol is the first DeFi protocol to negate this issue by building its own on-chain liquidation mechanisms. By making this process a decentralized and autonomous mechanism, lenders no longer lose money to the liquidation fees. This is one of the big ways Minterest can provide higher yield rates compared to other DeFi lending protocols.
Minterest will also have other innovative features like an intuitive dashboard that makes using the protocol accessible to anyone. The powerful dashboard will be able to show users a risk analysis of their current portfolio based on current collateral and market history. This drastically makes it easier for users to manage the level of risk they are exposing themselves to. The dashboard will even be able to show users the levels of risk for a potential position they’re considering.
In addition, the Minterest protocol is taking security very seriously. Before its early access phase, Minterest is going to go through a series of 3rd party audits. The team behind the protocol also has a high priority on the robustness of its code. These both will ensure that the protocol is sturdy and safe for users to use.
The Tsukiyomi Group is thrilled to partner with the Minterest project as it innovates the power of DeFi. Minterest has the innovation and infrastructure required for the protocol to thrive and succeed as a DeFi platform.
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Medium: Tsukiyomi Group