Lending Protocol Architecture

Architecturally, lending platforms are match marketplaces. Suppliers and borrowers are matched automatically without searching. The protocol focuses on the outcome (the loan itself) rather than the parties themselves (the identities of suppliers and borrowers). Users, both suppliers and borrowers, are critical to platform success.

For any platform to develop and be sustainable, it must capture a portion of the value its users create. In traditional, non-crypto platforms this occurs through the monetisation of user interactions. Instagram uses advertising and eBay clips buyer transactions, with the surplus benefiting shareholders.

With Minterest, users own the network. They determine its priorities regarding continuity and development via governance processes. Value is captured when borrowers interacting with the protocol contribute fees from their token assets for functions being undertaken on their behalf.