Summary
Minterest improves on current DeFi lending protocols.
- 1.Using auto-liquidations Minterest captures 100% of protocol fee value, more than any other, while minimising impacts on borrowers.
- 2.Protocol value is transferred via buyback mechanisms to users as Governance Rewards, incentivising users to stake MNT and participate. Longer-term participation earns increased voting weight, leading to an increased proportion of rewards.
- 3.The protocol accumulates MNT Governance Rewards in its Strategic Reserve causing long-term on-market scarcity. This supports demand for MNT, which is instrumental in supporting the long-term value of emission rewards.
- 4.Increasing the value of emission rewards supports the attraction of further TVL, leading to greater opportunities for protocol to capture fee value which in turn increases buyback value.