Given today’s constraints, a careful wind-down is the right step. The wind-down does not include any token issuance, distribution, or refund for CAE/LBP participants, private investors, or those impacted by the prior security-incident. We recognise this is not the outcome any party had hoped for.
Please head to the Minterest Sunset Hub for all relevant details related to this process, including addressing likely questions from the community.
At a Glance: What You Need to Know
Live until 19 December: 23:59 (UTC+00:00): Minterest App UI front end (Ethereum & Mantle Network Only)..
Paused: new supply/borrow functions
After 19 December: front end will go offline however a contract-interaction guide will remain available
20 December: TG, Discord, X channels will be muted permanently. Support shifts to [email protected] through December 31.
31 December: All official user support ends. Core infrastructure, including the solvency engines goes offline.
Smart Contracts remain active for users to directly repay/withdraw assets.
We’ll also post periodic reminders across Telegram, Discord, and email to ensure no one misses the window.
What We Achieved Together
After the project’s 2023 restructuring, a smaller team continued development under immense constraints to maintain the protocol, deploy new integrations, and keep the mission alive. It’s important to reflect on what was built through that, and what this community made possible:
Four chain deployments across Ethereum, Mantle, Taiko, and Morph
Top-3 TVL protocol on Mantle Network during peak activity
20,000+ on-chain users
The Solvency Engine, an industry-first liquidation protection model
Hottest NFT collection on Mantle
Recognition, grants, and performance awards totalling nearly $1M
Thank You
This isn’t the ending any of us hoped for, but it is the responsible one to protect protocol users and preserve the work for whatever may come next.
To everyone who believed in Minterest, including users of the Minterest protocol, private investors, CAE/LBP participants, ambassadors, ecosystem partners, advisers, and OG team members… thank you.
1. Capital has consolidated: Aave alone now holds nearly 50% of all lending TVL. This means that a handful of protocols are dominating the space, while most others struggle to maintain activity.
2. The lending sector is oversaturated: There are now over 500 lending protocols, up from 50 in 2023, yet the overall TVL has not grown since 2021. This creates an environment where every project is competing for the same liquidity.
3. Short-term LP deals are failing: Many projects have been offering 40-60%+ APY deals to attract private LPs, but these models don’t work beyond the short term. We are seeing capital exit as soon as rewards dry up.
For MINTY, this means listing now would not provide the strong entry we want. Instead of rushing forward, we are making sure that when MINTY lists, it does so with momentum, growing capital in the protocol, and real adoption.
Q2. Why was $50M in borrow TVL chosen as the target before listing, and why is this requirement only coming up now?
Kyn: We stay in close discussions with our core investors and partners, tracking how they navigate these conditions. One of the biggest shifts we’ve seen is that Web3 projects can no longer rely on their token treasuries the way they once did.
1. Liquidity is lower
2. Market caps have dropped below even 2022 levels
3. Projects are faced with pivoting or identifying ways to generate real revenue to stay afloat
This is a reality all Web3 projects will need to face. For Minterest, $50M in borrow TVL has always been an internal milestone target that indicates the protocol is moving towards levels that generate enough fees to support operations without relying entirely on external funding.
Given the current landscape, it now makes sense to make this a requirement before listing – ensuring that MINTY has a strong use case from day one, rather than relying on post-listing speculation.
Web3 businesses are simply not going to operate in the same way going forward. And we need to adjust to this mindset now in order to continue forward in a sustainable manner.
Q3. How do you respond to the argument that the lack of a MINTY token is actually preventing Minterest from growing?
Kyn: A liquid token can help drive engagement, and we are fully aware that emissions play a role in attracting LPs. That’s why Minterest already provides MNT (Mantle Network) emissions, which are entirely liquid, and have been for over 15 months now. LPs can supply and borrow to earn MNT there, which has proven to be a popular favorite, as it is unique across lending protocols on Mantle Network.
But a liquid token alone is not the answer. We have seen projects (Chains, DeFi protocols, etc) list their token first, hoping that would drive liquidity, only to end up in a situation where:
1. The token collapses due to a lack of real utility. 2. LPs exit once short-term incentives dry up.
If high APYs and token incentives were enough to guarantee success, every high-yield lending protocol would be thriving. But the reality is many projects are burning through incentives without building necessary adoption.
The goal is to grow supply and borrow in a way that lasts beyond just emission incentives, ensuring that MINTY launches with real demand behind it. And this approach requires real introspection, and a review of what will drive that beyond the playbook which has been in use for the last 5 years.
That is why we are prioritising $50M in borrow TVL first, to create a foundation for the token that itself creates demand.
Q4. Some people in the community feel let down by another delay, especially after multiple previous delays. How do you respond to that?
Kyn: I know this has become a bit of a running tale around Minterest listing delays as it is certainly not the first time we have pushed back listing. A point though is that every decision we made in the past was based on the conditions at the time and what we believed was in the best long-term interest of Minterest and MINTY holders.
But I also recognise that from the outside, it may feel like we are constantly moving the goalposts.
To be clear, this is not about avoiding a listing. A listing is a significant and expensive undertaking, and we have already committed time, resources, and financial outlay on legal work, deposits, and earlier marketing campaigns, particularly in mid-2024 when we were preparing to go live.
However, a poorly executed listing shortens the business’s runway. If we list without the right foundation, we risk damaging the project and the ability to maintain operations rather than strengthening it.
Considering all the hurdles we’ve already had to overcome as a community and team, we aren’t sticking around for the sake of it. Those hurdles have not been minor events either, from restructuring the business, managing a security breach, and developing under very challenging market environments with a lean and dedicated team.
We are still here because we believe in what we are building.
Q5. What steps are you taking to reach the $50M borrow TVL target?
Kyn: This is a time of exploration for product-market fit. Web3 is still in its early stages, with massive potential for growth, but onboarding remains a challenge.
What has been really surprising to us is that while market caps of a number of blue chip assets did reach ATHs, overall marketcap of Web3 reached ATHs, DeFi liquidity as a whole has not grown since 2021 levels!
This is not because DeFi does not work, but because it’s still just so complicated and friction heavy that 90% of crypto users just don’t use it yet.
That will change, but it also means for the time being this liquidity is being spread thin across a large number of chains and protocols.
With regulations coming in, new pathways to onboard users from Web 2, Trillions of capital is just waiting to come in to the space. DeFi will benefit, but we need to adjust our approach to make it easier to access.
So rather than just focus on the 10%, we are actively working on solutions to bridge this gap and grow Minterest’s TVL in a way that lasts. Some of the key areas we are focusing on include:
1. Liquidity Partnerships – We are working to onboard strategic LPs who can supply capital under steady conditions, rather than short-term APY farming. Stablecoin partnerships are a key part of this strategy.
2. Improving User Experience – DeFi remains friction-heavy, limiting adoption. We are exploring account abstraction, social logins, gas fee management, AI-driven solutions, and other ways to onboard the crypto users who do not use DeFi today.
I won’t claim there is a quick and easy fix, but this is the reality of where DeFi is today. We are taking a data-driven approach, testing what works, and refining our strategy to ensure Minterest scales in a way that is lasting.
Related to stablecoins, I actually love the dashboard on Artemis.xyz which highlights the incredible traction of Stables over the last 5 years. Even as we have faced bull and bear cycles, the adoption of stablecoins has continued to grow. It’s a testament to real product market fit.
Q6. What is the biggest takeaway from this AMA that you want the community to remember?
Kyn: Single biggest takeaway. That we are committed to getting this right.
For our team: 1. We are not rushing. We are executing strategically 2. We are focusing on sustainability, not hype 3. We are aligning MINTY’s launch with organic demand
I know this has been a long journey. But everything we are doing is to make sure that when MINTY launches, it is positioned for success.
And yes the patience has been extended beyond anyone’s expectation, including the team’s. That includes me, after taking the lead on the project. There are so many aspects that are not seen by the public, but drive key decisions.
And without seeing everything holistically it can seem like plans continue to change haphazardly. But that’s not the case, especially when so much is on the line.
Thank you to everyone who has supported us, and I appreciate all the questions today.
Q7. Minterest claims to have the best technology and yet is now claiming it can’t compete with 500 other protocols?
Kyn: The reality is technology alone does not guarantee dominance in DeFi. If it did, the most innovative protocols would automatically lead in TVL. But that’s not how the market works.
Right now, the most successful lending platforms aren’t winning because of their tech, they’re winning because of their liquidity and network effects. Aave, for example, now controls nearly 50% of all lending TVL. Not because it’s the most advanced protocol, but because it has the deepest pools of capital, the strongest integrations, and the longest track record.
Meanwhile, many of the 500+ lending apps aren’t competing by being better, they’re competing by offering insane incentives. As I mentioned 40-60% APY deals with private LPs aren’t innovation, they’re temporary band-aids. The moment those incentives stop, the capital leaves.
Minterest’s Solvency Engine and long-term token model are fundamentally different. We have tech that actually creates a fairer lending market, but that doesn’t mean we can magically bypass the liquidity challenge overnight.
What we are doing is building the right foundation first, so that when we scale, we do so with TVL that isn’t just here for a quick yield farm.
So yes, we believe in our tech. But we also recognise that winning in DeFi is as much about strategy as it is about innovation. That’s why we are executing in a way that supports long-term success, not just a short-term win.
As a side note the Minterest’s Solvency Engine and unique liquidation model have already proven to be highly efficient, protecting LPs from unfair liquidations better than any other lending protocol in the space. The Minterest protocol consistently protects LPs by up to 90%, in terms of the liquidations they might have faced on other lending protocols.
It’s performed incredibly over the last year, especially during massive flash crashes.
Q8. What internal team changes have happened in Minterest, and how does this impact operations?
Kyn: We have onboarded new team members since the end of last year, including a CMO, content writer, community lead, and additional engineering team members. Each of these hires has strengthened our ability to execute across key areas, product development, marketing, and community engagement.
The team members who have joined are all highly capable and dedicated to Minterest’s cause. These people are all actively involved in accelerating our efforts now and moving forward towards Minterest’s Product Market Fit strategy. And I couldn’t be prouder of them for managing through the challenges and maintaining their enthusiasm and dedication to our mission, to make DeFi accessible across all borders to empower the masses around the world.
Q9. What new developments have happened since the last AMA?
Kyn: Since the last AMA, we deployed Minterest’s latest integration on Morph via adaptiFi, marking the first franchise deployment of Minterest’s technology. This is an important milestone, as it shows that Minterest can scale beyond just our own direct deployments and be used by other ecosystems to build lending solutions.
It’s a slow burn growth approach with Morph but we like their team and strategic approach to gain traction.
We are now working alongside the Morph team to drive growth for adaptiFi, and borrowing functionality will be introduced soon.
As most in the community know, deploying Minterest with full features is a structured process, we do not launch borrow markets on Day 1 because security and stability come first.
Q10. What is the plan to turn around the loss of confidence from early backers?
Kyn: It has been a long journey, and the delays have tested patience. But Minterest has been here a long time for Web3 as well. For those who have been with us since 2021, they’ll know that there was a significant restructuring of the business and leadership change due to the initial capital invested in Minterest under former founder, Josh Rogers, being fully exhausted by early 2023.
The remaining team behind Minterest continued to believe in its vision and found a way to restructure the project and continue onwards, with a much leaner approach. During this time many projects that launched chasing short-term hype no longer exist. Minterest has continued building because we are not here for a quick exit. We are here to create something for the future.
For us, turning this around isn’t about making promises. It’s about delivering on the strategy we’ve laid out, focusing on TVL growth and protocol sustainability to support MINTY’s long-term success.
We are committed to executing in a way that benefits those who have supported us along the way, but it will take time as we figure the process out.
Even then, Minterest is a business at the end of the day, and working through the options we have on the table is a core priority for all of us. And the community will be informed of the progress as we make it all along the way.
Also, note that we aren’t pausing feature development on Minterest. That will continue forward even as we explore new options.
From everyone at Minterest, we thank you for the willingness to believe. And we’ll do the best we can to achieve success, together.
Thanks to everyone who joined the AMA! For future updates, please follow Minterest on LinkedIn, X, andYouTubeand join the conversation on DiscordandTelegram.
In a nutshell: Key differences between Minterest and Morpho.
How Minterest Creates More Value for Users
Minterest and Morpho enable users to deposit assets to earn yield and borrow against collateral. However, Minterest is designed to redistribute protocol-generated fees to its users, while Morpho does not directly reward its participants.
Minterest offers a fully automated lending ecosystem where users benefit from staking, NFT boosts, and loyalty rewards. The platform provides consistent value to its community, making it the most user-centric DeFi lending protocol.
Morpho improves capital efficiency by matching lenders and borrowers, but it does not provide extra incentives like Minterest. While it optimises rates, users miss out on direct fees-sharing benefits.
Interest Rates & Borrowing Costs: Minterest Excels in Rewards
For any DeFi lending protocol, interest rates determine the platform’s attractiveness for depositors and borrowers. Lower borrowing costs and higher supply rates create better incentives for participation.
Minterest offers high rewards through a variety of mechanisms, including MINTY token emissions, NFT boosts, staking, and loyalty incentives.
Morpho, while efficient, does not match Minterest’s rewarding incentives and direct protocol fee redistribution.
Morpho vs. Minterest: How Their Liquidation Processes Compare
Morpho and Minterest are both DeFi lending protocols, but they take very different approaches to how borrowing, lending, and liquidations work. While Morpho optimises existing systems like Aave and Compound, Minterest is a standalone protocol with its liquidation model. Let’s break down the key differences.
While both Morpho and Minterest are designed to optimise DeFi lending, Minterest stands out with a more sustainable and borrower-friendly liquidation model. Instead of relying on third-party liquidators, Minterest is intended to reinvests liquidation fees back into its ecosystem, making it a more efficient and fairer system compared to traditional DeFi lending platforms, including Morpho.
How Liquidations Work in Each Protocol
Minterest’s Self-Sustaining Liquidation System Gives Borrowers an Advantage
Fairer Liquidations → Unlike Morpho (which follows a similar procedure to what Aave/Compound’s apply with external liquidators), Minterest removes middlemen to benefit the protocol, rather than external arbitrageurs.
Automated Process → With its automated liquidation engine, borrowers get fairer liquidation prices, rather than facing predatory liquidators.
Long-Term Sustainability → The protocol doesn’t lose value to third-party liquidators—it recycles liquidation fees into user rewards instead.
Why Morpho Falls Short
While Morpho improves efficiency with P2P lending, it doesn’t address the biggest issue in DeFi lending: third-party liquidations.
If a borrower gets liquidated on Morpho, they still face the same risks as Aave or Compound users, meaning external liquidators profit at their expense.
Minterest removes this external dependency, making liquidations more predictable, fair, and beneficial for the ecosystem.
Which One is More Attractive for Borrowers?
Conclusion: Minterest Aims to Deliver More Value Than Morpho
Minterest is not just another lending protocol; it fixes a fundamental problem in DeFi by making liquidations fairer, more predictable, and more sustainable. While Morpho is an improvement over traditional lending pools, it still shares a similar Aave/Compound’s outdated liquidation model.
While Morpho’s peer-to-peer lending optimisation is beneficial, Minterest is the compelling choice for users who want maximum returns, security, and community incentives.
Minterest is designed to provide high APYs, lower borrowing costs, and fully automated liquidation protection.
Morpho lacks revenue-sharing and relies on external liquidators, making it less user-friendly.
For users prioritising higher rewards, staking incentives, and Buyback Engine is designed to route up to 100% of net protocol fees to on‑chain buybacks for eligible MINTY stakers and governors when activated, subject to governance approval, available reserves, and market conditions. Minterest emerges as a strong contender.
For a more precise understanding of why Minterest is the perfect DeFi lending protocol, read this detailed breakdown.
Mechanisms, reward rates, and fee allocations are subject to on-chain governance, technical audits, and market conditions. They may be modified, delayed, or suspended without notice. Figures are illustrative only, results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
Compound Finance is shifting away from expanding Compound V3 for multichain deployment and is instead collaborating with Morpho to enable this functionality, as announced by Compound’s Head of Growth, Bryan Colligan, on March 9, 2025. This pivot reflects a broader shift in dominance, with Compound’s borrow levels falling below Morpho’s for the first time in February 2024, showing just how fierce the competition is in DeFi lending, and we’re navigating this with you in mind.
Fig. 1.1.2 – Morpho has overtaken Compound TVL since Q4 2024
This trend is further evidenced by significant TVL declines among other quality projects, such as LayerBank (a 95% drop from $800M to $40M) and ZeroLend (a 85% drop from $850M to $130M), a pattern Minterest is also experiencing.
Fig. 1.1.3 – TVL across prominent Lending Protocols has declined significantly since Q4 2024
This concentration of liquidity in a few dominant players shows how capital is increasingly flowing to larger protocols, leaving the vast majority of protocols needing to find new ways to attract and retain users.
Note: the selection of protocols used is an illustration of a broad trend, and is non-exhaustive, as there are lending protocols, in this category, that may be outperforming.
1.2 The Lending Market Competition has Exploded without new Liquidity The number of lending protocols has risen from 50 to over 500 since March 2023, a 10-fold increase while TVL in DeFi has not increased beyond 2021 levels, intensifying the need for differentiation to stay competitive.
Fig. 1.2.1 TVL in DeFi has not grown in 3 years since Q4 2021
However, with over 500 protocols now competing for the same limited liquidity, the DeFi lending market has become overcrowded, making it increasingly difficult for projects to secure capital.
Historically, projects incentivised liquidity through high token emissions to drive user onboarding and growth. However, the market has shifted. Many now rely on unsustainable deals with private liquidity providers, promising returns of 40-60%+ to attract temporary capital, a model that no longer fosters long-term liquidity, prompting us to explore more sustainable alternatives.
1.3 Liquidity Distribution Across Chains Is Uneven
Liquidity distribution across more than 350 Layer 1 and Layer 2 networks remains uneven and fragmented, with significant capital concentrating on a few dominant chains like Base, Arbitrum, Tron, BNB Chain, and Solana, outside of Ethereum.
Fig. 1.3.1 TVL is fragmented across several chains (Source: DeFiLlama)
As a result, accessing liquidity and sustaining revenue for lending protocols now requires focusing on the Top 10 chains to support ongoing growth and development.
2. Finding Product-Market Fit for Sustainable Growth
Minterest isn’t just another protocol; it stands out with its unique Solvency Engine that aims to provide smarter, fairer liquidations compared to competing lending protocol, along with the MINTY token design, which has the potential to drive long-term value. With the right TVL, Minterest could become a major force.
Our team is taking a data-driven approach to product-market fit (PMF), focusing on long-term adoption rather than short-term incentives. Our goal is to identify and develop sustainable models where protocol fees support ongoing development, benefiting both the team and the community. As DeFi evolves, new trends are shaping the lending landscape, and we are actively exploring key areas that could define Minterest’s growth strategy.
2.1 Stablecoins: A Growing Opportunity in DeFi Lending
Stablecoins have emerged as the dominant product-market fit in blockchain, with over 30 million active wallets, doubling since March 2023. Over the same period, the stablecoin market cap has surpassed $200 billion, demonstrating consistent growth regardless of market conditions, with projections to reach into the trillions in the coming years.
For lending protocols, stablecoins drive over 90% of fee generation, yet only 10% of stablecoin holders actively use DeFi, revealing a vast untapped market.
Fig. 2.1.1 Stablecoin Marketcap Growth is Consistent since 2020 (Source: Artemis)
We are exploring how Minterest can:
Leverage institutional and retail adoption trends to capture the expanding stablecoin market.
Address key onboarding challenges that limit DeFi adoption among stablecoin holders.
Expand stablecoin lending options across multiple chains to attract new liquidity.
Understanding how to bridge this adoption gap and align with rising stablecoin demand is a key focus as we refine our PMF strategy.
2.2 Exploring Friction Points to Adoptions
Despite DeFi’s growth, onboarding complexity and liquidity fragmentation remain significant barriers to mainstream adoption. Our team is evaluating innovations that could reduce these frictions, making DeFi lending more accessible and efficient.
We are assessing:
Gasless Transactions & Smart Wallets: Exploring account abstraction to simplify onboarding by removing gas fees as a barrier to entry.
AI-Powered Risk Management: Researching automation for borrowing rates, yield optimisation, and liquidation protection to improve efficiency.
Intent-Based Execution: Evaluating solutions that automatically route lending actions to the best available rates without requiring manual intervention.
Rather than assuming any one solution is the answer, we’re focused on testing and validating where these innovations can deliver the most impact.
3. Listing Impact: Aligning with Ecosystem Growth
We know how much the MINTY listing means to the community. Rather than treating it as a one-time event, we believe a well-timed listing must align with our growth and long-term sustainability to help create lasting value for participants.
A thriving protocol strengthens MINTY by making it more valuable in a strong lending market, while a smart launch will draw in liquidity providers and borrowers to join our ecosystem. To make this happen, we’re linking the listing to real growth, aiming for at least $50M in borrow TVL as a key goal. This milestone ensures:
Liquidity would be expected to stay steadier, offering reliable rates for suppliers and borrowers.
Borrowing demand would be expected to stay strong, supporting long-term fees to fund improvements and buybacks for all of us.
Market momentum builds a solid liquid environment, setting MINTY up for success.
Instead of rushing, we’re focused on launching MINTY in a way that creates lasting value. Our roadmap, outlined below, shows how we’re working toward this $50M borrow TVL milestone, with you in mind.
4. Roadmap: The Path Forward
We’re building on our 2024 wins, reaching $16M TVL on Mantle, growing our social community to 100,000 followers, and expanding across four chains to find the right fit for Minterest and set up a sustainable MINTY listing we can all celebrate:
Q1 2025: Laying the Foundation:
Expanded Team: Added experts in product, engineering, operations, and marketing.
New Homepage Launch: Updated homepage for easier access.
Fan Card NFT Launch: Launched Dagora NFTs with MINTY allocations.
Protocol Deployment on Morph via adaptiFi: Started on Morph via adaptiFi for new lending options.
MINTY Expansion on Viction: Extended MINTY to Viction for new liquidity.
Q2-Q4 2025: Focusing on Product-Market Fit:
Improve Minterest Interface: Simplify Minterest for easier use.
Liquidity Partnerships: Build partnerships for stable capital.
Implementing New PMF Strategies: Launch strategies to boost TVL and ease onboarding.
Protocol Integrations: Connect to more networks for new liquidity.
Strategic Partnerships: Form partnerships to expand reach.
PMF Feedback Loop: Refine strategies with user feedback for success.
2026: Assessing Future Steps
MINTY Utility Expansion: Improve MINTY’s role in lending.
Sustainable Growth: Build a self-sustaining model, targeting $50M borrow TVL.
This roadmap is intended to create tangible progress toward sustainable growth and a listing that adds value to the entire ecosystem.
5. Looking Ahead
The Minterest team has navigated financial restructuring, security incidents, and shifting market conditions before, and we’re always moving forward. Now, we are adapting once again, focusing on sustainability and long-term growth to ensure a MINTY listing that delivers real value. This journey is shaped by your input, and the team at Minterest is committed to keeping you informed every step of the way. We’ll continue sharing updates and welcome your feedback across our social channels.
Timelines, targets (including the $50 M borrow TVL goal), referral features, and token-listing plans are subject to change based on governance votes, market conditions, and technical audits. They may be modified, delayed, or suspended without notice. Figures and projections are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
In a nutshell: Key differences between Minterest and Aave.
How Do Minterest and Aave Work?
Minterest and Aave enable users to deposit assets to earn yield and borrow assets using collateral. However, their mechanisms for yield generation, liquidation processes, and protocol fees distribution vary.
Minterest introduces an automated lending ecosystem that redistributes all protocol-generated fees to its users. This structure ensures that those participating in the protocol, whether as depositors, borrowers, or governance members, benefit directly from its operations.
Aave is a well-established DeFi lending protocol with multi-chain deployment and features such as flash loans and stable and variable interest rates. Its model is built around liquidity providers who earn interest, while part of the fees are directed towards the protocol’s treasury. With the latest governance changes, Aave is implementing revenue-sharing mechanisms, redistributing earnings to governance participants and safety module stakers, making it more competitive in this area (Aave Governance, Cointelegraph).
Interest Rates & Borrowing Costs
The appeal of a lending protocol largely depends on its interest rates, influencing both depositors seeking returns and borrowers managing costs. Lower borrowing costs and higher supply rates can make a platform more appealing for users looking to earn passive income or leverage assets.
Minterest offers competitive annual percentage yields (APY) in DeFi. With its capital-efficient design and deflationary token economies, the platform is intended to help users earn more on their supply. Minterest offers up to 50% additional APY from MINTY emissions, NFT boosts, staking, and loyalty rewards. The protocol offers competitive APYs across multiple blue-chip assets, including USDT, USDC, ETH, and WBTC. Operating on Ethereum, Mantle, and Taiko, Minterest aims to maximises earnings efficiently.
Additionally, Minterest keeps borrowing affordable by offering competitive annual percentage rates (APR). Borrowers also benefit from MINTY emissions, lowering their effective APR. Minterest differentiates itself by providing auto-compounding incentives, allowing depositors to optimise their earnings without requiring additional manual actions. In contrast, Aave operates under a traditional lending model, where supply and borrow rates fluctuate based on market demand and liquidity availability. Below, there is a comparison table measuring the supply and borrow percentages on the ETH Network:
Liquidation Process: Risk and Efficiency
Liquidation is an important part of DeFi lending platforms, ensuring that borrowed funds remain adequately collateralised. Minterest’s Solvency Engine is designed to automate liquidations, aiming to maintain stability and reduce user exposure to repeated liquidations, whereas Aave relies on an auction-based liquidation model.
Scenario: Peter’s Liquidation Experience
In an illustrative example, Peter, an active DeFi investor, has deposited $7,000 worth of Bitcoin (BTC) and borrowed $6,900 in USDC on both Aave and Minterest. When BTC drops 2% from $50,000 to $49,000, Peter’s collateral reaches the liquidation threshold.
Due to Minterest’s automated liquidation process, Peter retains $1,227 more in collateral compared to Aave’s auction-based method. The Minterest Solvency Engine stabilises Peter’s Health Factor (HF) at 1.08, helping him avoid multiple liquidations and further losses. Aave, meanwhile, relies on third-party liquidators who may extract greater portions of collateral to cover risks.
Governance & Revenue Distribution
Minterest is designed to reward active participants, redistributing all value generated back to the community. This approach supports a self-sustaining ecosystem where depositors, borrowers, and governance members are incentivised to contribute and participate in the protocol’s long-term growth.
Aave previously kept most revenue within the protocol’s treasury, but recent governance proposals have set revenue to be shared among stakeholders and governance participants (Aave Governance). This brings Aave closer to a model that rewards active participants, though Minterest is designed to route 100% of protocol fees generated back to users when activated.
Conclusion: Minterest Excels on User Benefits, Aave Improves Revenue Model
For users prioritising more rewards and automated liquidation efficiency, Minterest continues to provide a strong alternative in the DeFi lending space. Aave’s recent governance updates bring it closer to competing in this area, making both protocols worth considering based on individual preferences.
Mechanisms, reward rates, fee allocations, and liquidation parameters are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. Figures and examples are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
For a more precise understanding of why Minterest is the perfect DeFi lending protocol, read this detailed breakdown.
Minterest and Compound Finance offer DeFi lending services. However, their operational models, incentive structures, and financial mechanics make them fundamentally distinct. Below is a breakdown of what each platform brings to the table.
In a nutshell: Key differences between Minterest and Compound Finance.
Earning: Boosting Earnings Potential
Minterest stands out by offering competitive Annual Percentage Yields (APY) through MINTY token redistribution and auto-compounding. These mechanisms are designed to help both lenders and borrowers earn more with limited effort.
Users can earn up to 50% more rewards through MINTY emissions, staking, NFT boosts, and loyalty rewards, in addition to the standard APY from assets like USDT, ETH, and BTC.
Additionally, Minterest users can benefit from extra partner rewards. For example, the Metamorphosis Season offers MNT (Mantle network token) and Powder points.
In contrast, Compound Finance determines APY solely based on supply and demand, leading to frequent rate fluctuations. While this system can be effective in certain conditions, it lacks the yield-enhancing features that Minterest provides.
Borrowing: More Competitive Borrowing Rates
Minterest is designed to offer more competitive Annual Percentage Rates (APR) by integrating a unique buyback mechanism.
The Buyback Engine is designed to route up to 100% of net protocol fees to on‑chain buybacks for eligible MINTY stakers and governors when activated, subject to governance approval, available reserves, and market conditions, effectively reducing borrowing costs. As fees generated by the protocol are returned to users, borrowing becomes more cost-effective.
On the other hand, Compound Finance’s APR model is entirely based on supply and demand, leading to frequent fluctuations that may not always favour borrowers. Minterest’s approach intends to create a more stable and borrower-friendly experience.
Liquidation Costs: Keeping Low Borrowing Expenses
Minterest’s Solvency Engine is designed to automate liquidations, aiming to benefit borrowers by bypassing third-party liquidators. Unlike traditional DeFi liquidation models, Minterest continuously monitors positions in real time and liquidates only the exact amount needed to restore solvency, helping to minimise unnecessary losses for borrowers.
Instead of rewarding external liquidators with discounted collateral, Minterest is designed to redistribute the value from liquidations back to the community, increasing user rewards and fostering a more sustainable lending ecosystem.
By contrast, Compound Finance relies on third-party liquidators who scan for undercollateralised positions. When a borrower’s collateral value drops below the required threshold, these liquidators repay a portion of the debt in exchange for discounted collateral. While this maintains protocol solvency, it often results in borrowers losing more collateral than necessary, as liquidators prioritise profit rather than user protection. This can create a more aggressive liquidation environment, where borrowers face steeper penalties compared to Minterest’s borrower-aligned model.
Comparing Liquidation Scenarios
As an illustrative example, if Bitcoin (BTC) drops from $50,000 to $49,000, triggering liquidation due to a Health Factor (HF) falling below 1, Minterest users would retain approximately $1,040 more in collateral compared to those using Compound Finance. This means borrowers experience greater efficiency in liquidation events, preserving more of their assets.
Thus, by optimising the liquidation process, Minterest can offer users more savings, as shown below:
Market Architecture: Siloed vs Shared
Minterest operates as a cross-market protocol, allowing users to supply and borrow any assets within its markets. Collateral assets can be shared across different markets, enabling users to achieve higher yields on average, as they are not restricted to a single market’s collateral.
In contrast, Compound Finance employs siloed markets, each with its own set of accepted collateral assets. This means assets cannot be shared across positions, limiting users’ strategies and borrowing flexibility.
Minterest provides a broader range of options, including long/short ETH positions with stablecoin assets, which are not available on Compound Finance.
COMP vs. MINTY: The Role of Tokens
Minterest’s MINTY token design is to benefit from a structured buyback model that uses protocol-generated fees to swap for MINTY on the market once the token is liquid and the buyback engine is activated.
On the other hand, Compound Finance’s COMP token primarily functions as a governance tool. Its primary utility is voting on protocol decisions, rather than offering direct financial benefits to holders. While governance is crucial, Minterest ensures that holding its token carries tangible economic value.
When comparing the APY and APR associated with Minterest’s MINTY token and Compound Finance’s COMP token, it’s essential to understand their distinct mechanisms and the potential returns they offer to users.
Governance
Both platforms utilise decentralised governance, allowing token holders to influence decisions. However, Minterest’s governance model ensures users receive financial benefits from governance activities. Decisions regarding fee structures, buybacks, and protocol updates are made with direct community involvement.
Compound Finance’s governance, in contrast, is based purely on COMP token ownership, where voting power is proportional to the number of tokens held. While this is effective, it does not provide additional financial incentives for participation.
Conclusion: Why Minterest Raises the Bar
Minterest is redefining DeFi lending by prioritising sustainability, efficiency, and user benefits. Its standout features include:
CompetitiveHigher earning APY and borrowing APR
Protocol-owned liquidations aiming to reduce borrowing costs
A structured buyback model to support the MINTY token
While Compound Finance remains a well-known platform with strong liquidity, Minterest provides a reward-focused, cost-effective, and borrower-aligned economic model.
Mechanisms, reward rates, fee allocations, and liquidation parameters are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. Figures and examples are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
For a more precise understanding of why Minterest is the perfect DeFi lending protocol, read this detailed breakdown.
adaptiFi is the first-ever franchise deployment of Minterest, extending its lending infrastructure to the Morph ecosystem through a new model for protocol expansion. The Dapp follows Morph’s branding and UI standards, ensuring a familiar experience for Morph users while remaining fully linked to Minterest’s documentation and communication channels.
adaptiFi brings Minterest’s lending model to Morph L2. It aims to maximise user rewards by capturing and redistributing value through its unique Buyback Engine. The Buyback Engine is designed to route up to 100% of net protocol fees to on‑chain buybacks for eligible MINTY stakers and governors when activated, subject to governance approval, available reserves, and market conditions. This approach is intended to enhance long-term earning APY and may reduce borrowing APR, creating a fair, efficient, and sustainable lending ecosystem.
What is Morph L2?
Morph L2 is an Ethereum Layer 2 scaling solution designed to improve transaction efficiency using optimistic and zero-knowledge rollups. Morph L2 supports a wide range of DeFi applications by reducing transaction costs and increasing throughput, enabling seamless interactions across its ecosystem. More details can be found here.
Minterest & Morph Partnership
Minterest and Morph share a vision of expanding DeFi accessibility through low-cost, scalable lending solutions. With adaptiFi, Minterest brings its lending innovations to Morph L2, aiming to make decentralised finance more secure, efficient, and accessible to a wider audience. This collaboration makes DeFi lending more accessible, scalable and cost-efficient. By leveraging Morph’s Layer 2 infrastructure, users benefit from lower fees, faster transactions, and enhanced accessibility.
What Makes adaptiFi Unique?
adaptiFi is designed to maximise user rewards by capturing and redistributing value through its unique Buyback Engine. The Buyback Engine is designed to route up to 100% of net protocol fees to on‑chain buybacks for eligible MINTY stakers and governors when activated, subject to governance approval, available reserves, and market conditions. This innovative approach enhances long-term earning APY and reduces borrowing APR, creating a fair, efficient, and sustainable lending ecosystem.
Benefits of adaptiFi for the Minterest Community
The introduction of adaptiFi supports Minterest’s broader strategy of increasing TVL, reinforcing the protocol’s utility and sustainability.
Higher TVL: Helps strengthen lending efficiency and capital reserves.
Enhanced MINTY Buyback: Increased participation contributes to the buyback mechanism for MINTY.
Community Growth: Morph L2’s ecosystem introduces new users to Minterest, driving adoption.
adaptiFi assets
The adaptiFi platform enables lending and borrowing for the following assets:
USDC
USDT
WETH
WBTC
BGB (Bitget Token)
A 20% collateral factor applies to all assets mentioned above.
What’s Next for adaptiFi?
The launch of adaptiFi represents a series of improvements over several phases in integrating Minterest’s advantages into the Morph ecosystem.
Phase 1: Supply-side lending goes live for early adopters ✔️
Phase 2: Borrowing is introduced once sufficient liquidity is built ✔️
Phase 3: Planned full-feature lending ecosystem with NFT-based emission boosts and loyalty incentives.
Integration Expansion: Future developments will integrate deeper Minterest functionalities into adaptiFi.
adaptiFi strengthens Minterest’s position within the Layer 2 DeFi lending sector, ensuring continuous expansion and adoption across evolving blockchain ecosystems.
More exciting developments are on the way—stay tuned!
To keep up with the latest updates on adaptiFi and Minterest’s expansion, follow us on our official channels, Minterest Social Communities.
Buy-back percentages, APY/APR improvements, collateral factors, and phase timelines are targets based on current parameters and may change through governance decisions, audits, or market conditions; they may be modified, delayed, or suspended without notice. Figures and examples are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
Mechanisms, parameters, and expansion plans described above are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. Figures and examples are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
DeFi lending platforms operate mostly on single blockchains, such as Ethereum or Solana. This limits liquidity and restricts users to specific ecosystems. Cross-chain lending enables users to borrow and lend across multiple blockchain networks, making DeFi more accessible and flexible.
For instance, LayerZero and Axelar are developing solutions that allow users to move assets seamlessly between different chains. Imagine borrowing assets on Ethereum while holding collateral on Solana or Avalanche. Due to its agile design, Minterest is designed to integrate seamlessly across chains, enhancing accessibility for users. Unlike other protocols, it requires minimal additional infrastructure or third-party liquidator support, reducing deployment time and complexity.
4. Institutional Adoption and Regulatory Clarity
The DeFi lending market has become more stable and credible in recent years due to the entry of more institutions. Financial institutions must gain confidence in DeFi lending for it to reach mass adoption.
Major firms like BlackRock and Fidelity are exploring digital assets, creating permissioned lending pools so verified institutions can lend and borrow securely. These developments help bridge the gap between traditional finance and DeFi. It is important for platforms to maintain a level of compliance while maintaining decentralisation to facilitate institutional engagement in the evolving regulatory landscape.
5. The Growth of DeFi Credit Scores
Currently, DeFi lending mostly relies on over-collateralisation, meaning users need to lock up more assets than they borrow. This limits accessibility, especially for smaller borrowers. On-chain credit scores aim to change this by assessing borrower reliability based on transaction history and blockchain activity.
Projects like Goldfinch and Spectral Finance are developing decentralised credit scoring models that evaluate the user’s financial trustworthiness. In the future, users with good DeFi credit scores could be able to borrow with lower collateral requirements. Decentralised lending solutions that use alternative credit assessments could greatly enhance borrowing accessibility while preserving risk management safeguards.
6. Integration of DeFi into Fintech Applications
An emerging trend in DeFi is the integration of decentralised lending into traditional financial technology (fintech) applications. This integration makes DeFi more accessible by embedding its features into familiar financial services, such as digital banking apps and payment platforms.
For example, some fintech companies are exploring ways to offer DeFi lending options alongside conventional loans, enabling users to seamlessly transition between decentralised and traditional financial services.
Final Thoughts
DeFi lending is evolving rapidly, and 2025 is expected to be a pivotal year for innovation. Automated liquidation mechanisms, real-world asset tokenisation, cross-chain lending, institutional adoption, DeFi credit scores, and fintech integration are transforming how people interact with decentralised finance. Platforms embracing these innovations will likely play a significant role in shaping the next phase of decentralised lending.
DeFi involves risk, including potential loss of principal; all mechanisms and figures are illustrative, subject to on-chain governance and market conditions, results are not guaranteed, and nothing herein constitutes financial or investment advice.
The MINTY token plays a key role in the ecosystem of Minterest. Here is the innovative part: The Buyback Engine is designed to route up to 100% of net protocol fees to on‑chain buybacks for eligible MINTY stakers and governors when activated, subject to governance approval, available reserves, and market conditions. This approach is intended to enhance long-term earning APY and may reduce borrowing APR.
5. Built for Strength and Security
In the DeFi space, security is critical, and Minterest prioritises it with nineextensive security audits conducted by top-tier blockchain security firms, including Trail of Bits, Hacken, PeckShield, and Zokyo. Minterest aims to provide a strong and secure environment for both new and experienced DeFi users.
Minterest combines competitive returns, borrowing costs, and advanced security in an intuitive platform. Whether looking to grow your portfolio or exploring DeFi for the first time, Minterest delivers the tools needed to succeed. It is not just about financial optimisation—it is about being part of a protocol shaping the future of finance.
Ready to get started? Explore Minterest’s website to see how it can enhance your DeFi experience.
Follow Minterest on LinkedIn, and X, and join the community on Discord and Telegram for updates and discussions.
All mechanisms, reward rates, fees, and security features are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. Figures are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
2. Claim MINTY: Claim tokens contained in the NFT on Starship.network after the public listing while retaining the ability to trade any remaining tokens tied to the NFT.
Why the Fan Card NFT?
The Fan Card NFT empowers holders by:
Flexibility: Choose how to interact with MINTY, trade upfront or claim tokens over time.
Control: Access tokens securely through trusted platforms within the Viction blockchain ecosystem.
Key Partners
The Minterest Fan Card NFT leverages partnerships with trusted platforms to provide a streamlined experience for holders:
Dagora.xyz: An NFT marketplace for trading your Fan Card NFT, giving you liquidity options even before the public listing.
Starship.network: A community-driven token launch platform enabling gradual token claims based on the vesting schedule.
Viction Blockchain: Transactions are processed fully on-chain, aiming for transparency and security, leveraging the Viction blockchain ecosystem.
Community Giveaway!
To celebrate the launch of the Minterest Fan Card NFT, we are excited to announce a special giveaway!
A total prize pool of 10,500 $MINTY tokens is up for grabs, with 210 Fan Card NFTs available to win.
Giveaway Duration:22 January – 5 February Prizes: 210 NFTs, each worth 50 $MINTY tokens for 210 lucky winners
The giveaway is hosted on Galxe, a platform that provides tools to create and manage on-chain campaigns. It enables users to engage with blockchain projects and earn rewards by completing interactive tasks.
Earn up to 210 points by completing tasks on Galxe, such as liking posts, sharing content. Once you qualify, you will be entered into a raffle to win a Fan Card NFT.
The campaign is powered by Minterest, Starship, Dagora, and Viction Blockchain.
Stay tuned for more details on how to participate and win your very own Minterest Fan Card NFT.
Getting Started
The Minterest Fan Card NFTis now live! Explore, acquire, and trade these digital assets through the official Minterest collection on Dagora.xyz.
Head over toDagora.xyz now to browse the collection.
Why the Fan Card NFT Matters
The Fan Card NFT represents a unique approach to token airdrops. Whether you’re trading on Dagora.xyz or claiming through Starship.network, the Fan Card NFT enables a flexible way to hold MINTY tokens.
Next Steps
Want to learn how to get started? Check out our detailed tutorials:
Experience the future of token airdrops with the Minterest Fan Card NFT.
Legal Disclaimer
The information provided in this blog post is for informational purposes only and does not constitute financial, investment, legal, or professional advice. Participation in the Minterest Fan Card NFT program and the use of related platforms, including trading or claiming MINTY tokens, involves risks and should be undertaken only after careful consideration of your individual circumstances.
Minterest does not make any guarantees regarding the future value, performance, or market conditions of MINTY tokens or related NFTs. Users are responsible for conducting their own research and due diligence before engaging in any transactions.
Minterest does not engage in price speculation or provide guidance on token price movements. Discussions on the vesting schedule and its mechanisms are intended solely to provide clarity on the distribution process and should not be interpreted as financial advice.
By participating in this program, users acknowledge and accept all associated risks, including but not limited to market fluctuations, trading risks, and regulatory uncertainties. Minterest and its associated platforms are not liable for any losses or damages incurred as a result of participating in the program or engaging in transactions involving MINTY tokens or NFTs.
The Minterest Fan Card NFT is a distinct offering separate from the Minterest NFT. Ownership of a Minterest Fan Card NFT does not provide any boosts or advantages within the Minterest protocol.
For further assistance or clarification, please reach out to the Minterest support team or consult with a professional advisor.
The redesigned homepage reflects Minterest’s commitment to innovation, transparency, and fairness. Here is what users can expect:
High APY: Base APY combined with additional rewards to drive earnings.
Lower APR: Competitive rates that help reduce costs for borrowers.
Rewarding engagement: Users who actively use the protocol benefit from optimised rewards. If a user supplies and borrows on Minterest, the protocol is designed to reward them with a MINTY token, Minterest NFT, a loyalty boost, and higher staking rewards.
Dynamic NFTs: Minterest NFTs evolve with user engagement, offering additional perks for active users.
User-focused protocol: Sustainability and user rewards are at the heart of Minterest’s operations, aligning with the needs of the DeFi community.
The Bigger Picture
This homepage relaunch is just the beginning. A new DApp interface that aligns with the updated design is planned to be launched shortly, further enhancing the user experience. These updates are part of Minterest’s ongoing effort to provide a seamless, rewarding DeFi experience. Future enhancements will focus on meeting the evolving needs of the platform’s growing user base.
Features, timelines, reward rates, and fee parameters are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. Figures and examples are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
$cmETH is a LRT – liquid restaking token on Mantle Network. $cmETH to $mETH token is pegged 1:1. This new addition enables users to earn yields from various restaking protocols without the need to switch between them including Eigen Layer, Symbiotic, Karak Points and Veda Points. Users also accrue Powder rewards for Mantle Network’s governance token $COOK.
For a detailed explanation of how rewards are calculated and distributed, take a look at this blog post from Mantle Network.
Borrowing and Lending Dynamics on Minterest
As $cmETH integrates into the Minterest lending protocol, borrowing will initially be capped at a conservative percentage, allowing us to monitor and grow liquidity pools for $cmETH. This approach is designed to strengthen stability for all users, aiming to provide a gradual and reliable market entry as liquidity pools deepen. You can easily get started by supplying $cmETH to earn competitive APYs, with more substantial borrowing limits coming soon as the pools grow.
Methamorphosis Season 2: Earn Rewards as You Supply
With Methamorphosis Season 2 that has just begun, both $cmETH and $mETH are set to gain exclusive Powder incentives. For the first 30 days, each $cmETH and $mETH token on Minterest will accrue 20 Powder per unit per day, providing early users a chance to earn Powder points at a significant rate. This also gives users substantial time to switch over from $mETH to $cmETH while both positions are indexed for Powder accrual. After this period, for the remaining 80 days, only $cmETH will continue to earn these incentives. You can switch from $mETH to $cmETH during this without losing any rewards.
Powder points aren’t just about boosting your rewards—holding Powder makes you eligible to earn $COOK, Mantle’s governance token. Through $COOK, you’ll be able to participate in future decisions for the Mantle ecosystem and play a role in shaping its path forward.
Where Can You Get $cmETH?
You can swap any asset for $cmETH on partner DEXes – Agni Finance and Merchant Moe amongst others. Soon, you’d also be able to swap $mETH to $cmETH right here.
Why Supply $cmETH on Minterest?
AttractiveReturns: With APYs tailored for DeFi growth, early participants can leverage favourable lending rates and Powder accumulation for additional rewards.
Long-Term Engagement: Holding $cmETH may open up avenues for ongoing Powder rewards and potential $COOK earnings, making it a compelling option for users invested in the Mantle ecosystem.
Dynamic Ecosystem: By supplying $cmETH, you’re actively supporting the expansion of Mantle’s interconnected markets, and contributing to a growing liquidity pool while accruing benefits.
Start Your $cmETH Journey Today
We’re thrilled to bring $cmETH into the Minterest stable and can’t wait to see the impact it has on our community. With Methamorphosis Season 2, now is the perfect time to explore the benefits of $cmETH and join a transformative journey in decentralised finance. Supply $cmETH on Minterest, earn rewards, and become an active part of building the future with Minterest and Mantle Network 🙂
Token-reward schedules, borrowing limits, swap availability, and protocol parameters are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. The 1:1 peg between $cmETH and $mETH relies on external mechanisms and is not guaranteed. Figures and examples are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
Thank you for your continued trust and support as we work towards building the future of DeFi together.
Smart-contract audits reduce, but do not eliminate, risk. Findings are limited to the scope and time of review; new vulnerabilities may emerge. Use of the protocol remains subject to on-chain governance, technical updates, and market conditions. Nothing herein constitutes financial, legal, or investment advice, and past security reviews do not guarantee future security or performance.
12, September 2024
Minterest is excited to have a new token market FBTC—a wrapped version of Bitcoin that is designed to operate seamlessly across multiple chains available on Mantle chain. Early adopters can participate in the Sparkle Campaign, an exclusive opportunity to earn additional rewards simply by supplying FBTC on Minterest.
What is FBTC?
FBTC is an omnichain Bitcoin asset pegged designed to be 1:1 with BTC, offering enhanced accessibility and utility across various blockchain networks. You can read more about FBTC here. By converting idle BTC into FBTC and supplying on Minterest, earn multiple yields – in MNT & MINTY while also securing lucrative benefits in the Sparkle campaign.
The Sparkle Campaign
Through Sparkle Campaign, early adopters are rewarded with a share of 5,000,000 Sparks and the chance to secure a rare Early Igniter NFT. By supplying FBTC, you become eligible for these exclusive rewards while benefiting from Minterest’s optimised APYs, driven by its innovative fee-capture mechanism and emission rewards.
How to Participate in the Sparkle Campaign
Supply FBTC on Minterest and maintain a daily average holding of ≥0.001 FBTC during the campaign period, which runs until September 22, 2024.
Scheduled to receive 4x Sparks per 0.001 $FBTC daily.
A dashboard is planned to be available soon by Ignition where you can see your sparks grow. Check here for more info.
Participants also share in a pool of extra 5,000,000 Sparks, with rewards distributed based on the number of Sparks you hold relative to the total Sparks.
Join the Sparkle Campaign Today!
Don’t miss out on this exciting opportunity to earn extra rewards while exploring the benefits of FBTC. Supply your FBTC on Minterest today, and become a part of the Sparkle campaign. Whether you’re new to DeFi or a seasoned pro, this is your chance to shine!
For any questions, feel free to contact our mods on Discord/Telegram or email us at [email protected].
FBTC is an external, third-party asset that is designed (but not guaranteed) to maintain a 1 : 1 peg with BTC and is issued, custodied, and redeemed outside the control of the Minterest protocol. All reward schedules, peg mechanisms, borrowing limits, and product timelines are subject to change through the Sparkles programme’s governance or market conditions; figures are illustrative only and results are not guaranteed. Nothing herein constitutes financial, legal, or investment advice.
FBTC is now live and ready to be supplied on Minterest. Note that borrow capability will be offered in due course as we assess adequate depth of liquidity available on partner DEXs.
For any questions, feel free to contact mods on Discord/Telegram or email us at [email protected].
FBTC is an external, third-party asset issued, custodied, and redeemed outside the control of the Minterest protocol and is designed (but not guaranteed) to maintain a 1 : 1 peg with BTC. Sparkle-campaign reward schedules and parameters are determined by the campaign organisers and may change through their governance processes. Reward schedules, dashboard availability, peg mechanisms, and network expansions are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. Figures and examples are illustrative only; results are not guaranteed. Nothing herein constitutes financial, legal, or investment advice.
The Minterest Protocol recently underwent a comprehensive security audit conducted by PeckShield. PeckShield is a leading cybersecurity firm specialising in blockchain technology and smart contract auditing. This audit examined the MUSDY contract and extended to the MToken, MEther, and Supervisor contracts that are essential for the functionality of all token markets on the platform. The Minterest team has thoroughly addressed the findings, supporting the platform’s readiness for a secure and reliable reopening. You can read the summary of the audit report here.
Minterest Reopens with 2x Emissions
To mark the reopening, Minterest is scheduling to offer a three-week period of increased MINTY & MNT emission rewards for all suppliers and borrowers:
August 3 – August 9: +100% emission rewards
August 10 – August 16: +75% emission rewards
August 17 – August 23: +50% emission rewards
+40% Emissions Boost for Affected WETH and mETH Suppliers
In addition, a further +40% boost in emissions is scheduled for three months (until 2nd November 2024) to all impacted WETH and mETH suppliers who had $50 or more in supply before the incident.
Token Markets Include Audit Verified Badges: All token markets now feature a verified audit badge for added transparency. You can read more about the recent security audit completed by PeckShield here.
Base Interest Rates Return: Base interest rates, which were paused for the past 2 weeks, have now returned to normal. Borrowers are again paying interest to suppliers, supporting the continued health of the platform.
You can also find all the pertinent information catalogued in GitBook here.
During the initial reopening phase, there may be periods of increased volatility as users rebalance their portfolios, which could temporarily influence interest rates and withdrawal processes. We ask for your patience during this phase as market dynamics help bring Minterest back to equilibrium.
Thank you for your understanding and support over the past few weeks as we worked through the reopening process. We’re excited to return to normal operations and focus on our upcoming plans, including new token markets, partnerships, and potential new deployments. The entire team is committed to driving the platform forward and achieving new heights.
For any questions, feel free to contact our mods on Discord/Telegram or email us at [email protected].
Reward schedules, emission boosts, borrowing limits, and other parameters are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. Audit findings are limited to the scope and time of review and do not guarantee future security. Figures and examples are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
07, August 2024
Minterest has successfully completed a security audit for the USDY contract, conducted by PeckShield, delivered on August 4, 2024. PeckShield is a leading cybersecurity firm specialising in blockchain technology and smart contract auditing. This audit is part of our ongoing commitment to enhance the security and integrity of our platform. Below, you will find a summary of the findings, recommendations, and resolutions.
Audit Overview
Coverage of Audit
This audit covers the MUSDY market support, i.e., the MUSDYToken contract, focusing on ensuring contract security, efficiency, and robustness against potential vulnerabilities. The investigation also includes holistic auditing coverage across all Minterest token markets on supported chains (Ethereum, Mantle Network, Taiko) by examining the related contracts required to support the MUSDYToken market, including MToken, MEther and Supervisor.
MToken Contract Audit
The MToken contract, covered in the audit, is the parent smart contract to the MUSDYToken.sol contract. This base contract is integral to the majority of the other token markets, including:
Mantle Network: USDT, USDC, mETH, and WETH
Taiko: TAIKO and USDC
Ethereum: USDC, USDT, and WBTC
MEther Contract Audit
The MEther.sol contract, covered in the audit, is specifically used for native tokens on chains that can be wrapped into ERC20 token standards and then unwrapped back. This includes the following token markets:
Mantle Network: MNT/WMNT
Ethereum: ETH/WETH
PeckShield’s Audit Approach
PeckShield’s audit process is thorough, starting with automated scans for common vulnerabilities, followed by an in-depth manual review to identify more complex issues. Their methodology includes cross-comparison with industry standards and testing against a wide range of attack vectors. Findings are ranked from critical to informational, with the final result reflecting the overall security status of the contract.
Audit Findings
The following are the key findings from PeckShield’s audit of the USDY contract:
Audit Summary
The PeckShield team performed a thorough analysis of the MUSDY market implementation within the Minterest protocol. The audit process involved both automated and manual reviews of the smart contract code, examining the business logic, system operations, and potential vulnerabilities. The findings are categorised based on their severity:
Critical: 0
High: 0
Medium: 1
Low: 2
Informational: 0
Total: 3
Key Findings and Resolutions
1. Possible Precision Issue in Token::redeemFresh()/autoLiquidationSeize() Severity: Medium Description: A precision issue in the redeem logic could lead to small numerical errors, potentially exploited under certain conditions. Recommendation: Revise the routine to prevent precision loss and ensure markets are never empty by minting small MToken balances at market creation. Status: Resolved. The team has ensured that all new markets start with a zero utilisation factor and provides an initial supply that will not be redeemed.
2. Inconsistent Non-Reentrancy Enforcement in Supervisor Severity: Low Description: Inconsistent use of the nonReentrant modifier in the Supervisor contract’s routines could lead to reentrancy issues. Recommendation: Add the nonReentrant modifier to the beforeLend() implementation for consistency. Status: Resolved. This issue was fixed in commit d57385c2.
3. Improved Ether Transfer with Necessary Reentrancy Guard Severity: Low Description: The use of the transfer() routine in MEther could lead to gas limit issues due to EIP-1884, and it is recommended to use call() instead. Recommendation: Transfer ETH using call() to avoid potential gas limit issues and improve security. Status: Resolved. The team has confirmed that the current implementations will remain until new requirements arise, prioritising user experience and preventing potential reentrancy attacks.
Next Steps
We have addressed all key issues identified in the audit. Detailed findings and resolutions have been implemented to enhance the overall security and robustness of our platform.
Thank you for your patience and continued support. For any questions or further information, please contact the mods on Discord/Telegram or send an email to [email protected].
Audit findings reduce—but do not eliminate—risk. Results are limited to the scope and date of review; new vulnerabilities may emerge. Use of the protocol remains subject to on-chain governance, technical updates, and market conditions. Nothing herein constitutes financial, legal, or investment advice; past security reviews do not guarantee future security or performance.
Consistency in code style is vital to ensure readability. We check that our code follows an internal Code Style guideline based on the official Solidity Style Guide. This includes details from naming conventions to code layout.
Step 4. Analysis Tools
To catch potential issues early, we utilise several industry-leading static analysis tools and benchmarks.
Slither: A powerful static analysis tool that scans Solidity code for vulnerabilities and errors, acting as the primary quality gate in the review process.
Solhint: Used to standardise and format the code, ensuring alignment with the Style guide.
Hardhat: A versatile toolkit that helps maintain unit test coverage at a 98% level, validated by Codecov. Hardhat also supports various testing and deployment workflows, making it an integral part of our development process.
Mocha: A testing framework that helps create benchmark tests.
Finally, the contracts are covered with integration tests that check that changes on the blockchain level do not interfere with the web infrastructure.
Step 5. Simulations
To test how the code would function in a real world setting, simulations are designed to walk through various user behaviour scenarios.
In a general scenario the team defines all potential user groups, including lenders, borrowers, stakers, vesting owners, and parties thereof.
Then, a live protocol simulation test is conducted, where those user groups perform multiple operations like lending, borrowing, staking, and withdrawing.
The outcome is then compared to the expected results to answer one simple question: in real life, could a user experience any challenges or negatively impact the protocol through their actions? If yes, the decision is made on how to modify the code, and the revision loop iterates until we are satisfied with the output.
Step 6. Integration Testing
The final step before peer review involves integration tests. These tests ensure that changes at the blockchain level do not disrupt the web infrastructure or other critical components of the system.
Code Review
Step 1. Peer Review
Once the code creator is satisfied with the initial result, a peer who has familiarity with the architecture and codebase of Minterest is selected to review it. This approach allows for fresh eyes to evaluate the work and catch potential issues.
The selected reviewer mindfully reads the code, tests it and reaffirms that the output serves the end goal.
Step 2. Verification Against Known Issues
The peer reviewer runs the fresh code through a checklist of known issues. We track different levels of vulnerabilities and so-called “smelly code” — bad practices that should be avoided. The team uses a comprehensive Security checklist compiled from credible sources like Beirão, to guide this process.
Independent Peer Review
We are adding independent peer reviewers as part of the development pipeline to enhance code quality and security. This involves engaging with external experts to provide an unbiased evaluation of the underlying codebase.
Step 1: Engaging External Reviewers
We select reviewers with expertise in blockchain and smart contract security from trusted partners and the broader community. They bring fresh perspectives to identify potential issues.
Step 2: Review Process
These external reviewers thoroughly analyse the code and documentation, focusing on security vulnerabilities and best practices, using the same tools and standards as our internal team.
Step 3: Feedback and Iteration
The feedback is reviewed with our team, necessary revisions are made, and the code is retested until both parties are confident in its security and reliability.
This process adds an extra layer of scrutiny, reinforcing our commitment to delivering secure and reliable smart contracts.
Third-Party Audit
Security Audit Policy
The final line of defence is the third-party audit. Audits are specifically scheduled for code that directly interacts with user assets. This includes code changes that impact money markets, MINTY distribution, or processes related to assets, user roles, or contract ownership.
Other changes are accumulated for periodic full-scale audits, like previously audited integrations with bridges or Internal changes in liquidation engine contracts.
Step 1. Audit Prep: Tag and Organise
Both code creator and a peer reviewer mark the code that requires third-party auditing. This organisation helps streamline the audit process and ensures that no critical changes are overlooked.
Step 2. Audit Scope
We document the changes from the previous audits and intended functionality in fine detail, catering to the auditing firm’s needs.
Then, we prioritise revision areas based on the deployment schedule and coordinate with the audit provider to establish a timeline for deliverables.
Step 3. Audit Kickoff
The batched code and documentation are sent to the third-party audit team. Throughout the audit, our team provides any additional context or explanations needed to help the auditors fully understand the changes.
Step 4. Audit Process
When the audit team is ready to provide results, we review the audit report together with the audit team to make sure we understand all findings.
We then prioritise and implement necessary fixes, re-test the code to ensure no new issues arise, and resubmit the update to the audit team for another round of reviews. This process iterates until the teams agree to sign off.
Finally, the auditor provides a report with the finalised review, findings and recommendations.
Step 5. Go Live
Finally, the code is deployed to the main network. Post-deployment, we monitor the code to ensure stability, performance, and security.
Conclusion
This document is provided to show our commitment to transparency and continuous improvement by sharing Minterest’s development process. If you are a domain expert with feedback, please share it with our team on any of our social channels.
And, thank you to the community for your continued support of Minterest.
Point-reward schedules, referral features, NFT multipliers, and chain expansion timelines are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. Figures and examples are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
09, July 2024
Minterest NFTs are more than just digital collectibles. They’re integral to the Minterest protocol. They enhance your yields while also acting as cool and unique art pieces.
Let’s take a closer look at how our NFTs can make your experience on Minterest more rewarding.
Overview of Minterest NFTs
Minterest NFTs enhance user engagement and returns. Spanning 12 tiers, the collection includes 3,000 unique NFTs, each meticulously crafted to honor key pioneers and innovators in the blockchain space.
These NFTs vary in rarity and in the functional benefits they offer. From increasing yields to providing exclusive access to new features, each tier adds a layer of value.
The artworks themselves serve as a tribute to the influential figures who have shaped the cryptosphere. Each NFT is a piece of blockchain history. Whether you’re a novice in the digital assets space or a seasoned collector, Minterest NFTs offer a way to commemorate these icons while enhancing your returns on Minterest.
Expiry alert for Level 12 NFTs
Level 12 NFTs are the most attainable of our Minterest NFT collection. They offer yield boosts – of 20%. These premium NFTs supercharge your returns AND stand as digital representations of your commitment to the DeFi space.
However, these NFTs come with an expiry date. Level 12 NFTs are set to expire in July 2024. This means that the exceptional benefits they offer will no longer be accessible after this date.
If you are the lucky holder of a Level 12 Minterest NFT, utilise your NFTs before they expire and enhance your returns. Reap the full benefits of your investment. For every bit of yield you obtain through supplying or borrowing on Minterest, you get a boost through an NFT too.
Levels 8 and 9 NFTs
Looking for longer term benefits? Levels 8 and 9 of Minterest NFTs offer long-lasting benefits to their holders. These tiers aim to balance between yield enhancement and longevity.
Level 8 NFTs come with a yield boost of 27.5% and are valid until October 2025. Level 9 NFTs give you a 22.5% boost and their validity stretches until next April.
These levels are designed for those who want to sustain high returns over an extended period. The longer validity means you can enjoy the benefits deep into 2025, making these NFTs particularly sought after by long-term DeFi strategists.The yield boosts associated with these NFTs significantly enhance the returns on both lending and borrowing activities. They are powerful tools for those looking to maximise their investment outcomes on longer time frames.
You can buy Minterest NFTs from Mintle here or bridge your Minterest NFT from Ethereum.
How to bridge Minterest NFTs to Mantle Network
You can now bridge your Minterest NFTs directly to the Minterest app! Bridge your NFT today to utilise your yield boosts.
Here’s how to do it:
1. Log in to your Minterest account and navigate to NFT Bridge on the menu in the top right corner.
2. Click on NFT Bridge to open the NFT Bridge widget. This is where you can pick your wallet where the NFT is stored.
3. Go through the permission allowance and transfer process with the wallet of your choice.
4. If your transfer is successful, you will receive a transaction success message like below.
5. Click on See transaction in block explorer to monitor the status of the bridging.
6. When the transfer is complete, the Delivered status will appear.
7. After you have successfully bridged your NFT to Minterest, the NFT will appear on your Dashboard page of the Minterest App when logged into the Mantle Network.
8. On the main page of the Minterest App, the Mantle dashboard will show an activated NFT gauge once the APY boost feature is launched.
Pick up a Minterest NFT on OpenSea or Mintle today to boost your yields and get privileged platform access.
Join the Minterest community on Telegram, Discord and Twitter to meet like-minded people and position yourself for upcoming opportunities.
Yield-boost percentages, NFT validity periods, bridging functionality, and platform features are governed by on-chain proposals and market conditions; they may be modified, delayed, or suspended without notice. Boosts apply only while relevant NFT tiers remain active and do not guarantee specific returns. Figures and examples are illustrative; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
Here are five reasons you should get your hands on a Minterest NFT on Mantle right now.
1. Boost the yields on the assets you lend
Minterest NFTs act like turbochargers that can amplify the rewards you earn from lending and borrowing.
Every transaction on Minterest earns you rewards in the currency you’re lending/borrowing AND the platform’s native token $MINTY. Depending on the tier of your Minterest NFT, it can increase your yield by up to 50%.
Even lower-tier NFTs can provide meaningful yield boosts. For example, holding a tier-10 NFT gives you a 20% boost. For example, if you are earning 40% APY in MINTY tokens, this pushes it up to 48%.
Minterest NFTs also allow autostaking of the emissions you earn, compounding your bonuses further. A very rewarding cycle for Minterest users.
2. Get $MINTY bonuses
Beyond enhancing your yield, Minterest NFTs unlock extra $MINTY bonuses and additional benefits. This is part of Minterest’s unique model of redistributing up to 100% of net fees back to users, enhancing the overall profitability of participating in the platform.
$MINTY token holders have the right to participate in governance decisions. This includes voting on proposals and making changes to the protocol. By holding Minterest NFTs and maximising your $MINTY, you can have a bigger say in the development and operational strategies of the Minterest platform.
3. NFTs are time-limited
These yield-boosters are time-limited and their benefits are coming to an end soon. Some lower-tier Minterest NFTs expire in July.
If you’re a Minterest NFT holder or you’re planning to get one, make sure you’re aware of this, and get the most out of its yield-boosting benefits while you still can. Make sure to use them while active to optimise potential rewards.
4. Maximise your $MNT yield with Minterest NFTs
Take advantage of Mantle’s growing popularity and the $MNT token. By using Minterest NFTs, you can boost your rewards in $MNT by up to 50% too and get premium tokens without the extra spend. It’s a smart way to enhance your portfolio and get more benefits from Mantle’s vibrant ecosystem.
5. Exclusive community
By joining the Minterest NFT community you become part of an exclusive circle.
Minterest is planning to launch a special Discord channel, offering unique insights and benefits only available to NFT holders. And as an early supporter, you get access to NFTs with higher rarity and longer validity but also the opportunity to trade them within the community.
What are you waiting for?
If you’d like to explore higher yields, consider picking up a Minterest NFT.
Pick up a Minterest NFT on OpenSea for Ethereum and Mintle for Mantle Network today.
Percentages, fee-return amounts, yield boosts, and examples are illustrative targets based on current parameters and may change through governance, audits, or market conditions; they may be modified, delayed, or suspended without notice. Results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice. † “Up-to” figures show maximum theoretical boosts; actual boosts depend on NFT tier, market conditions, and emission schedules.
This approach aims to improve value capture, can increase rewards for lenders and may reduce effective cost of borrowing. By redirecting captured net fees to users when the Buyback Engine is activated, the model is intended to encourage ongoing participation.
TVL drives rewards
As Minterest’s TVL grows it can create a positive feedback loop since increasing TVL generates more fees, fees generate greater buy back, greater buy back provides greater rewards for users, and thus attracts further liquidity. This cycle of growth improves the net yields for both lenders and borrowers, drives sustainable tokenomics, and increases rewards to strengthen users’ loyalty to Minterest.
Governance rewards
Governance rewards are the key to protocol value in the Minterest model. Minterest governance rewards are directly connected and sourced from the buyback mechanism. The longer users stake $MINTY, the more incentives and governance weight they receive in voting rights based on a loyalty boost, rewarding long term active participation in the governance process.
This voting right and reward system enriches the governance process and ensures that true Minterest supporters are given generous yields and bonuses.
Strategic reserve
The Strategic Reserve is a treasury of $MINTY tokens to be utilised by the future Minterest DAO to support the protocol’s growth.
A portion of the Strategic Reserve is staked and grows. The rewards can be used by the Minterest DAO in a multitude of ways via fiscal and monetary policy-inspired levers to benefit the protocol and its users including, but not limited to:
Growth: The DAO can utilise treasury earned from the buyback to fund new developments beneficial to the community.
Token supply management: The DAO can elect to stake and lock any buyback tokens away to reduce on-market supply.
Refresh emissions: As opposed to other lending protocols that run out of token emissions, Minterest can utilise Strategic Reserve earnings to recycle them back into emissions to continue providing greater rewards than other protocols.
Minterest NFTs
Minterest NFTs are designed to provide a unique use case in DeFi as a core of the protocol. 3000 NFTs span across 12 levels, each granting a holder a different perk. The main utility of the NFT is the emission booster granted to the holder, currently increasing yields by up to 50% depending on the tier.
NFTs attract early adopters to Minterest, bootstrap liquidity, encourage education and loyalty to the protocol. Minterest NFTs fulfil a multi-layered mission as they increase emission rewards, effectively boosting the amount of $MINTY staked in governance, which in turn increases governance rewards received from the buyback mechanism.
Learn more about Minterest NFTs here, check out the beautiful Minterest NFT Gallery and get started on your collection on OpenSea and stay tuned for the upcoming Minterest NFT collection launch on Mintle.
Wrapping up
Minterest creates an economic model that rewards long-term engagement and participation. Through its solvency engine, governance rewards, strategic reserve, and the resulting token scarcity, Minterest has developed a cohesive ecosystem that incentivises users to invest in the platform’s future.
Fee‑routing percentages, yield boosts, governance mechanics, and illustrative APYs/APRs are targets based on current parameters and may change through on‑chain governance, audits, or market conditions; they may be modified, delayed, or suspended without notice. Figures and examples are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
You can consider adding a Minterest NFT to your collection to pursue higher yields. Add them to your collection by purchasing from OpenSea and Mintle.
Percentage boosts, fee-routing amounts, and example APYs are illustrative targets based on current parameters and may change through governance decisions, audits, or market conditions; they may be modified, delayed, or suspended without notice. Results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.† “Up-to” figures show maximum theoretical boosts; actual boosts depend on NFT tier, market conditions, and emission schedules.
For the uninitiated, Minterest NFTs are not just a unique work of art, they have inherent utility too. Holding one of Minterest’s limited edition 3000 NFTs in 100 unique characters can currently boost yields by up to 50% for 5-38 months.
Minterest NFTs also serve as a snapshot in time of the 100 most notable names in Blockchain.
The NFT’s are available now on Mantle Network and a limited collection is available on Mintle to acquire. The APY boosts for holding a Minterest NFT in your wallet while supplying and borrowing begin on 18 March 2024.
To celebrate the launch of Minterest NFTs on Mantle Network, we ran a Galxe campaign led giveaway. The winners shall receive the NFTs on the wallet address provided. Without further ado, here are all the winners – Congratulations
In addition to the Galxe campaign, Minterest gave ample opportunities to our awesome community to win one of these yield boosting NFTs. The winners are –
Mantle Discord Stage Live Giveaway Winners
Last 5 characters of wallet ID
Levels awarded
be5d3
Tier-9
6Ce11
Tier-9
772D3
Tier-9
6AB50
Tier-9
Mantle x Minterest Space on X Giveaway Winners
Last 5 characters of wallet ID
Levels awarded
86652
Tier-12
aF607
Tier-12
55db1
Tier-12
Winners of Giveaway hosted by Crypto Lark
Last 5 characters of wallet ID
Levels awarded
3f1f5
Tier-11
ce906
Tier-11
232CC
Tier-11
Bf616
Tier-11
c9Dd7
Tier-7
Winners of Giveaway hosted by Crypto Zombie
Last 5 characters of wallet ID
Levels awarded
e985D
Tier-11
C4a26
Tier-11
345BE
Tier-11
8527a
Tier-11
60986
Tier-7
Winners of Giveaway hosted by Viktor
Last 5 characters of wallet ID
Levels awarded
1154d
Tier-11
E7d65
Tier-11
b9dFc
Tier-11
13c3a
Tier-11
a78c7
Tier-7
Winners of Giveaway hosted by Coach K
Last 5 characters of wallet ID
Levels awarded
c7ED4
Tier-11
7B00e
Tier-11
7E917
Tier-11
0fCbB
Tier-11
b5A79
Tier-7
Winners of Giveaway hosted by arndxt
Last 5 characters of wallet ID
Levels awarded
6f363
Tier-11
59656
Tier-11
2312b
Tier-11
4e514
Tier-11
c9b1E
Tier-7
Find Minterest NFTs on NFT Marketplace, Mintle. And, keep your eyes peeled for more opportunities to win more Minterest NFTs and potentially boost your yield!
We also have exciting announcements in store for those who hold a Minterest NFT on Ethereum for bridging and utilising them on Mantle Network. Stay tuned!
Boost percentages and durations are illustrative and depend on NFT tier, market conditions, and emission schedules; they may change through governance or protocol updates. Results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.† “Up‑to” figures indicate maximum theoretical boosts.
There is no way to hide our excitement, Minterest NFTs – now coming to Mantle Network. Minterest NFT collection includes 3,000 unique NFTs divided into 12 tiers, 1 being the highest & 12 – lowest. Each NFT presents a unique artwork featuring prominent figures in Web3 and currently offers emission boosts of up to 50% for supplying and borrowing for a duration of 5 to 38 months.
To celebrate the launch of Minterest NFTs on Mintle, a leading NFT marketplace on Mantle, we’re hosting a massive competition on Galxe in partnership with Mantle Network & Mintle launching on Tuesday, February 27.
Keep reading this blog post and be among the first to win Minterest’s limited edition yield boosting NFTs on Mantle Network.
Campaign structure
Our competition will be hosted on Galxe and offer a combination of social and on-chain tasks for crypto beginners and Web3 natives.
X space
We’ll kick off the campaign with a dedicated X Space hosted by Mantle where you can win 3 Level-12 NFTs. Don’t miss the chance to get answers to all your burning questions and start climbing the leaderboard. Book the date:here
Social (off-chain) tasks
Social campaigns will be split into two equal phases:
Phase 1: February 27 – March 4.
Phase 2: March 5 – March 11.
In both phases, you’ll be able to enjoy similar quests such as interacting with our social communities, inviting friends to join the contest, as well as tweeting about your experience with Minterest NFTs. By splitting the campaign into 2 equal stages, we’re giving away double the amount of prizes! All you have to do is complete all the tasks and you enter the raffle.
At the end of each phase, we’ll pick 25 winners totalling to 50 who supercharged our socials through a raffle. Each lucky community member will be rewarded with a Level-12 NFT. If you don’t win an NFT in the raffle of Phase 1, you will be added to the raffle of Phase 2.
On-chain tasks
If you want to take it up a notch and aim for NFT tiers offering higher boosts and longer validity, participate in the on-chain tasks. Unlike social and referral quests, on-chain activities will not renew and stay the same for the entire duration of the competition: from February 27 to March 11.
XP points
When you choose to do on-chain activities, you’ll be earning experience (XP) points. Your experience points will stop accumulating on March 11, 11:59 UTC. We’ll take a snapshot of the leaderboard wherein Top 100 contestants enter a raffle to split a prize pool of 25 Level-11 NFTs, 15 Level-10 NFTs, 9 Level-9 NFTs, or even a Level-4 NFT. In case of tie, all participants with equal XP up till position 100 on leaderboard shall be entered in the raffle.
Benefiting Citizens of Mantle NFT holders
Issued by Mantle Network, Citizens of Mantle is a NFT collection developed in collaboration with famed international visual artist Chen Man, whose signature style merges elements from both Eastern and Western traditions, enhanced by 3-D rendering and image manipulation techniques.
If you already hold Citizen of Mantle (CoM) NFT, this is your one-of-a-kind opportunity to boost your potential yields on Minterest on Mantle Network. Take part in this pool to win a Minterest NFT and aim for higher yields for all supplying and borrowing activities.
To support Citizens of Mantle holders, we’ll give away additional 50 Minterest NFTs of different tiers to Galxe participants who complete the tasks in this quest.
Final surprise
In addition to the X space and Galxe campaign, we’re teaming up with top Key Opinion Leaders to give away more NFTs. Turn the bell on for the Minterest X, formerly Twitter account and stay tuned for daily alpha and a lineup of opportunities to bag an NFT.
Save the date for our Twitter Space hosted by Mantle Network
Keep an eye on Minterest NFT giveaway from your favorite opinion makers.
Already own a Minterest NFT on ETH? Read this step-by-step guide for bridging Minterest NFTs to Mantle Network.
Boost percentages and durations are illustrative and depend on NFT tier, market conditions, and emission schedules; they may change through governance or protocol updates. Results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.† “Up‑to” figures indicate maximum theoretical boosts.
Keys to one-of-a-kind emission boosters of up to 50%, depending on the tier, and privileged access for both supply and borrowing activities during the Private and Public Launches.
Not all NFTs are created equal: the collection varies by rarity and yield-boosting capabilities. With each NFT represented by 1 of 100 unique artwork, rarer NFTs have fewer copies of each artwork, have higher Emission Boost, and longer validity periods.
Minterest NFTs are rewards to active users during community events like AMAs, giveaways, lotteries, and other activities, and were initially awarded to Minterest LBP participants. They are also sold by community members across various NFT marketplaces, including on OpenSea, so that users can trade NFTs and transfer ownership of the corresponding boost, with previously earned MINTY kept by the original owner.
How to bridge Minterest NFTs to Mantle Network
We are proud to introduce NFT Bridging directly to the Minterest app! The NFT Boost will be activated on March 18, 2024, so bridge your NFT before then to potentially enhance your yields.
Follow the process below to migrate your Minterest NFTs to the protocol:
1. Log in to your Minterest account and navigate to NFT Bridge on the menu in the top right corner.
2. Click on NFT Bridge to open the NFT Bridge widget. This is where you can pick your wallet where the NFT is stored.
3. Go through the permission allowance and transfer process with the wallet of your choice.
4. If your transfer is successful, you will receive a transaction success message like below.
5. Click on “See transaction in block explorer” to monitor the status of the bridging.
6. When the transfer is complete, the Delivered status will appear.
7. After you have successfully bridged your NFT to Minterest, the NFT will appear on your Dashboard page of the Minterest App when logged into the Mantle Network.
8. On the main page of the Minterest App, the Mantle dashboard will show an activated NFT gauge once the APY boost feature is launched.
5 reasons to get Minterest NFTs NOW
The Public Launch is just around the corner, and many Minterest NFTs have already been distributed, but you still don’t have one. Why should you get Minterest NFTs?
With multi-layered utility and unique use case, there are 5 main reasons why the best time to get a Minterest NFT is now:
Minterest NFTs can currently boost your yields on lending and borrowing by up to 50%, helping your capital work harder in the protocol.
Minterest is planning to open an exclusive Discord Channel for the community of Minterest NFT holders with unique benefits and alpha.
As an early community supporter, you have a chance to access NFTs of higher rarity. A higher tier means bigger boosts and a longer expiration period so that you can enjoy higher-yield bonuses.
Minterest NFTs can work across all chains Minterest deploys on, including the Mantle Network. Take your yield-boosting NFTs wherever Minterest deploys and potentially boost your rewards.
Trade Minterest NFTs within the community to diversify your collection and access additional yield boosters.
Yield‑boost percentages, fee‑return mechanics, and other figures are illustrative targets based on current parameters and may change through on‑chain governance, audits, or market conditions; they may be modified, delayed, or suspended without notice. Results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice. † “Up‑to” figures indicate maximum theoretical boosts; actual boosts depend on NFT tier, market conditions, and emission schedules.
Get your Minterest NFT on OpenSea and stay tuned for the upcoming Minterest NFT collection launch on Mintle.
Jump into our community on Telegram, Discord and Twitter, and be the first to grab the next chance to claim your Minterest NFT.
Crypto borrowing is a DeFi feature that allows investors to take loans using their crypto assets as collateral. Collateral means using your crypto holdings as a security against your loan.
By being alternatives to traditional banks, decentralised platforms play the role of intermediaries in connecting borrowers with lenders directly. In crypto borrowing, transactions are governed by smart contracts. With their terms coded in, these self-executing contracts make every transaction transparent with all information recorded and easily verifiable on the blockchain. While such contracts don’t set the rules themselves, they enforce the predefined terms of borrowing and lending automatically.
Borrowers have access to a variety of loan options. Collateralised loans are the most common in the industry and require over-collateralisation to mitigate risk. This structure means you can borrow only a fraction of your collateral’s value. For those who prefer flexibility, crypto lines of credit offer more funds, with interest rates applied only to the amount you use. Another type, uncollateralised loans, depends on creditworthiness and trust, but they are rarely offered in crypto due to the high risks involved.
Benefits of crypto borrowing
Crypto borrowing offers numerous benefits and provides an efficient way to manage your portfolio. Here are the key advantages as opposed to TradFi loans:
Access to liquidity: Borrowers can get cash by taking out a loan against their crypto. It allows them to keep their assets and any potential future increase in their value.
Investment leverage: By using crypto as collateral, investors can access funds to diversify or increase their investment portfolio.
Hedge against volatility: Crypto borrowing can help mitigate some of the risks that come with market value changes.
Efficiency and accessibility: The process avoids the credit checks and paperwork of traditional banking and offers a faster borrowing experience.
Competitive rates: The interest rates for crypto borrowing are currently more profitable compared to traditional banks.
Crypto borrowing on Minterest
Minterest is among the first decentralised lending protocol that is designed to route up to 100% of net protocol fees back to users. As opposed to lending protocols like Aave, Compound, and others, the protocol design is deflationary and benefits both lenders and borrowers. It’s engineered to attract and reward long-term liquidity providers and holders. The platform gives back the value it earns to users and those holding $MINTY tokens.
Borrowing
Borrowing on Minterest is flexible. The amount that can be borrowed depends on the value of assets you have supplied as collateral and the available liquidity in the protocol. If there isn’t enough liquidity or if your health factor drops below its threshold, you won’t be able to borrow. You can check the liquidity and borrowing parameters for each market on the market details page of the app.
Interest rates and $MINTY rewards
On Minterest, the interest rate for borrowing is dynamic and it adjusts based on the demand for the asset you want to borrow. You can always see the current rate right on your dashboard.
When you borrow on Minterest, you’ll be paying interest on what you borrow, but you’ll also be earning $MINTY rewards based on how much you’ve borrowed. Both the interest rates and $MINTY rewards change often, and you can find all the latest details, like APR and any rate changes, on the market details page in the app.
How to avoid liquidation
Keeping a good health factor well above “1” is key to avoid liquidation on Minterest. If it drops below “1” into the red zone, the protocol will use some of your collateral to pay off your loan. To prevent this, you can do two things: pay back a portion of your loan early, which is usually a preferable choice, or supply more collateral to improve your health factor.
Minterest offers a variety of tools and features to help you keep track of your loan, lower the chance of your collateral being used to support a stable and safer borrowing experience.
How to get started
Getting started with Minterest borrowing is easy. To borrow an asset on Minterest, follow these steps:
1. Begin by supplying an asset to the platform, which will be used as collateral for your loan.
2. After supplying your asset, go to either the “Markets” or “Dashboard” page on Minterest.
3. Enable collateral for all token markets you want to borrow against.
4. Choose the “Borrow” button for the specific asset you wish to borrow.
5. Decide on the amount you want to borrow.
6. Finalise your borrowing decision by confirming the transaction.
7. Interest payments will automatically commence once your borrow is registered, based on that asset’s current borrowing interest rate.
Conclusion
Crypto borrowing on Minterest opens a new chapter in DeFi. Minterest aims to offer competitive sustainable yields and borrower friendly terms as the only DeFi lending protocol designed to return 100% of fees to its users through its unique Buyback Engine once activated.
Fee‑routing percentages, yield boosts, interest rates, and borrowing terms are illustrative targets based on current parameters and may change through on‑chain governance, audits, or market conditions; they may be modified, delayed, or suspended without notice. Figures and examples are illustrative only; Borrowing on the protocol carries collateral and liquidation risk: if asset prices move against you, some or all of your collateral may be sold, and you could lose principal. Past performance does not guarantee future results. Nothing herein constitutes financial, investment, tax, or legal advice; always conduct your own research and consult professional advisers before making decisions. † “Up‑to” figures indicate maximum theoretical boosts; actual boosts depend on NFT tier, market conditions, and emission schedules.
Don’t miss out on the latest in DeFi and crypto borrowing: follow Minterest on Telegram, Discord and Twitter.
06, February 2024
Minterest is thrilled to announce the launch of two new next-generation assets on the Minterest protocol: $USDY/$mUSD, powered by ONDO Finance, and $mETH, powered by the Mantle Network! As we support further advancements in lending and borrowing, we invite you to an in-depth look into the native yield-bearing $USDY/$mUSD and $mETH markets.
Lending $USDY/$muSD and $mETH earns you a variety of yield too:
Base interest.
$MINTY.
$MNT.
Yield-bearing APY.
In this article, we’ll dive into the details of our partnerships and provide a guide on how to be the first to access the new assets on the platform.
What is $USDY/$mUSD?
$USDY and $mUSD are native assets on ONDO Finance backed by real-world assets that generate native yield.
Here’s a brief overview of each:
$USDY: $USDY is an accumulating token. Holders of $USDY experience a direct increase in their token’s value. The yield is generated from underlying assets in the form of increasing redemption value. In simpler terms, the value of 1 USDY will automatically increase over time as interest is accumulated. $USDY can be purchased on any of the supporting DEXs: FusionX, iZUMi.finance, and Agni.Finance.
$mUSD: At its core, $mUSD is a tokenized bearer note designed to maintain a $1 peg. Its unique mechanism allows it to rebase, with interest distributed through the issuance of new token units. This ensures that $mUSD holders enjoy stability and benefit from the accumulated interest.
Which asset does Minterest support?
Minterest now supports deposits in both $USDY and $mUSD within the same token asset market.
The two assets are utilised interchangeably. Minterest utilises $USDY so $mUSD deposits will be converted to $USDY automatically. Tokens can also be withdrawn to either asset type. All native interest generated will continue to be earned on the chosen asset.
mETH is a permissionless ERC-20 receipt token offered by Mantle, enabling users to stake ETH and receive mETH in return.
It serves as a value-accumulating token that can be seamlessly integrated into applications, representing the underlying staked ETH and accumulated rewards. This innovative token is part of Mantle’s Liquid Staking Protocol (LSP), aligning with the goal of mass adoption of DeFi.
More markets, more crypto, and more opportunities to lend and borrow with the only lending protocol that is designed to redistribute 100% of fees back to its users through the protocol’s Buyback Engine, once activated.
Stay tuned for more announcements and community updates on Twitter, Discord, and Telegram.
$USDY / $mUSD (issued by Ondo Finance) and $mETH (issued by Mantle) are third-party assets. Their issuance, redemption, peg mechanics, and native yields are managed outside the control of the Minterest protocol and may change without notice. Fee-return percentages, peg targets, and yield illustrations are based on current parameters and may be modified, delayed, or suspended through external or on-chain governance, market conditions, or technical audits. Figures are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
29, January 2024
We’re excited to announce that Minterest is now integrated with API3, a leading blockchain oracle provider. This partnership bridges the gap between off-chain data and on-chain applications like Minterest with high security and low latency.
Our collaboration combines API3’s advanced data services with Minterest’s next-generation style lending protocol. Minterest is now integrated into the robust Mantle Network to unlock lending and borrowing in $mETH and $MUSD.
Together with API3 and the Mantle Network, we’re aiming to create a DeFi space that is more secure and user-focused. This partnership will introduce new opportunities and much-anticipated mETH and mUSD markets, expanding our potential in the DeFi landscape. Read more to uncover the details of our collaboration.
What is API3?
API3 is a leading blockchain oracle provider bridging traditional third-party oracle networks to first-party oracle solutions.
API3 offers a range of tools for developers who are creating advanced applications, including:
Airnode, which lets API providers connect directly to the blockchain.
Decentralized data feeds (dAPIs) available on the API3 Market.
QRNG services that generate genuinely random numbers on the blockchain.
OEV Share, is a feature that helps decentralized apps (dApps) enhance their performance and benefit from Oracle Extractable Value.
And much more.
API3 builds an interconnected, sustainable ecosystem with verifiable, decentralized, and secure oracle solutions.
What is Minterest?
Minterest is a decentralised lending protocol designed to capture 100% of fees and then redistribute those fees back to users through a buy-back of the $MINTY governance token once the feature is activated. Minterest is also able to tap into greater fee capture through its proprietary Solvency Engine, which manages liquidations at the protocol level instead of relying on third parties.
The protocol’s architecture is intended to attract and retain long-term liquidity over inflationary mechanisms and aims to benefit the Minterest community and $MINTY token holders from our value-centric ecosystem.
Minterest is designed to redistribute significant value from the protocol back to users and $MINTY token holders. As a result, Minterest is effectively able to offer potentially improved lending and borrowing interest rates that are sustainable.
Minterest partners with API3 to unlock mETH and mUSD
This integration enables Minterest to launch the mETH and mUSD markets for lending and borrowing.
This integration enables Minterest to launch the mETH and mUSD markets for lending and borrowing. This collaboration will spark a high APY generation event for Minterest, presenting an attractive opportunity for liquidity providers.
Minterest’s collaboration with API3 is central to the protocol’s growth strategy and marks an important step in its roadmap to broaden cross-chain interactions, minimize liquidity fragmentation, and aims to expandaccessibility for DeFi users.
What’s next for Minterest?
The partnership between Minterest and API3 seeks to advance DeFi by combining API3’s data expertise with Minterest’s lending innovations, creating a more integrated, efficient, and user-centric platform.
Opening Minterest to mETH and mUSD markets is a huge milestone in our roadmap, and the API3 integration will continue to bridge our protocol to attractive opportunities for users. Celebrate the announcement on Twitter and join the community for upcoming updates.
$mETH and $mUSD are third-party assets issued and managed outside the control of the Minterest protocol. Their peg mechanisms, yields, and redemption processes may change without notice.
API3 oracle services are likewise provided by an independent third party; data availability, accuracy, and timeliness are subject to API3’s own infrastructure and governance decisions.
Fee-return percentages, APY illustrations, and roadmap timelines are targets based on current parameters and may be modified, delayed, or suspended through governance, market conditions, or technical audits. Figures are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
A prize pool of 66,000 MINTY and additional rewards were up for grabs to participants who completed the tasks, such as setting up a Galxe account, minting a Mantle Soulbound NFT, and completing quests!
The campaign was an overwhelming success:
$2.7M in total value locked (TVL) on Minterest.
7,000+ On-Chain Suppliers
4,874 Galxe users interacting with Minterest
Minterest entered the Top 10 on Mantle Network by Users
Following this remarkable success, let’s delve deeper into the strategic elements and collaborations that propelled Minterest’s Moonshot campaign, starting with its partnership with Mantle, the insights from a recent AMA session, and a recap of the campaign stats.
Minterest and Mantle: A Strategic Partnership
Minterest’s collaboration with Mantle is central to the protocol’s growth strategy and marks a crucial step in its roadmap to broaden cross-chain interactions, minimise liquidity fragmentation, and aim to expand accessibility for DeFi users.
Mantle stands out as one of the industry-leading L2 solutions due to a range of features:
Optimistic Rollups: Accelerates transactions and slashes fees, enhancing the efficiency of DeFi lending and borrowing for Minterest users.
EVM Compatible L2: Ensures seamless access to the Minterest platform using familiar tools while inheriting the robust security of Ethereum’s base layer.
Liquidity Boost: More liquidity on Minterest’s platform post-integration can improve lending and borrowing rates.
Enhanced Network Capacity: Mantle’s capability to handle high transaction volumes supports Minterest’s scalability.
Interoperability: The integration aligns with Minterest’s strategy to bridge DeFi liquidity gaps across multiple blockchains.
Leveraging Mantle’s efficient transaction processing and modular architecture has enhanced Minterest’s offerings in DeFi lending and borrowing.
Minterest launches on Mantle at quite the opportune time, taking advantage of a recent climb in total value locked (TVL) or the dollar value of all assets on the Mantle Network. TVL is an important metric for a lending protocol like Minterest because as the money on Mantle grows, it will continue to look for more opportunities to earn yield. Mantle Network TVL is pictured below:
Minterest, with its MINTY token, is designed to return 100% of net protocol fees to users, which may lead to competitive and sustainable yields.
Galxe Users, TVL, and Minterest App
The Galxe campaign was a resounding success, with total users crossing 4,800 as the final day of the Mantle Moonshot campaign commenced. All these users have contributed to the impressive TVL statistic of $2.7M by the end of the campaign (viewable on the app) and enjoyed MINTY and MNT rewards. You can see a live update of the yields that are being paid to suppliers on the home page of the Minterest app, pictured below:
Thanks to our Galxe quest, users were encouraged to turn on “Governance Rewards,” which auto-compounds earned MINTY into more staked MINTY. In this audio clip, you can learn about the MINTY flywheel and how protocol fees are redirected to MINTY buybacks from Minterest CEO, Kyn Chaturvedi.
Mantle x Minterest x iZUMi Finance AMA
During the Moonshot campaign, Kyn (CEO of Minterest) had the chance to catch up with the Mantle and iZUMi teams for an AMA session. Topics covered strategic partnerships, the introduction of innovative protocols, plans for cross-chain liquidity development, and a focus on community feedback and transparent evolution.
Here’s a recap in case you missed it:
Minterest’s Confidence in Mantle: Minterest selected Mantle from over 30 L1s and L2s for its openness to innovative growth strategies, highlighting a mutual commitment to long-term viability.
Innovative Moonshot Protocols: The campaign’s eight protocols, including the Citizens of Mantle NFT upgrade, were discussed, emphasising Minterest’s approach to dynamic user engagement.
Earning Yield Through Mantle Moonshot: The AMA addressed how Minterest retains users post-campaign with up to 25% yield offerings†, illustrating its user-centric approach.
Building a Cross-Chain Liquidity Pool: Collaboration with LayerZero and Stargate to enable cross-chain lending and borrowing was a focal point, indicating a step towards a more interconnected DeFi ecosystem.
2024 Growth Protocol and User Base Expansion: Minterest’s future direction, including exploring NFTs and token governance, was outlined.
ByBit x Minterest x Mantle x iZUMi Finance AMA
Minterest also participated in an exclusive X Space with ByBit and provided some alpha on Minterest’s upcoming roadmap on Mantle Network.
Key points in this recap:
Minterest’ Purpose of Participating in the Moonshot: DeFi Lending is largely new to most Web3 users. The Moonshot campaign provided a platform to educate the community about the value of lending and how simple it is.
Minterest’s Goal to Drive Liquidity to Mantle Network: Minterest’s direction is a multi-chain one allowing users to lend on one chain and borrow on another. Minterest seeks to support liquidity growth on Mantle Network by allowing it to tap into other networks that Minterest plans to deploy to in the future.
mUSD & mETH Coming Soon: Mantle Network native interest-bearing assets mUSD and mETH are arriving soon to Minterest!
Wrapping Up
Minterest’s Mantle launch and Moonshot campaign have led to substantial protocol growth and have helped position it as an active participant in the DeFi lending and borrowing sector.
With a focus on strategic partnerships, technological advancements, and community-centric growth, 2024 is set to be a big year for the $MINTY community.
For the latest news and updates, visit the blog, and don’t forget to join Minterest and Mantle Network on social media and our community channels to connect and discuss!
Fee-return percentages, yield illustrations, and performance projections are targets based on current parameters and may be modified, delayed, or suspended through governance votes, market conditions, or technical audits.
† “Up-to” yields are illustrative and may vary with liquidity, emissions, and market rates.
$mETH and $mUSD are third-party assets issued outside the control of the Minterest protocol; their peg mechanics, yields, and redemption processes may change without notice. Nothing herein constitutes financial, legal, or investment advice, and results are not guaranteed.
Connect your web3 wallet and select the Mantle blockchain.
Click the Mint Mantle Journey Soulbound Token (MJSBT) link.
Click the Mint MJSBT button and sign the transaction in your wallet. Please note that minting requires a small amount of $MNT to pay gas fees.
Once you’ve received your Soulbound NFT you can verify your social media account or accounts and customise your user profile.
You’re all set up and ready to start earning MJ Miles!
Journey mile points are awarded based on the completion of tasking. Simple tasks – such as executing transactions on Mantle – earn fewer points than more advanced tasks, such as participating in governance or interacting with verified protocols.
A full list of MJ tasks and their associated points can be found on the Mantle Journey website.
Discord Verification
Now that you’ve minted your Soulbound NFT, you must verify yourself as a holder on the Mantle Discord channel. After accepting the Discord invite, complete the verification process by connecting the web3 wallet that your NFT is stored in.
There are currently 89,557 verified Soulbound NFT holders, so you’ll be in good company!
Social Media Verification
Time to share what you’ve been up to!
Connect your Twitter (X) account and click the ‘Tweet’ button. A popup will open with a pre-configured post verifying your account and providing your GalxeID.
Share the post, paste the link, and you’re good to go.
Minterest’s Galxe Quests
Congratulations, you’ve successfully completed the required tasks and are ready to start ticking off Minterest’s Galxe quests and earning rewards and yield!
Minterest has 8 Galxe tasks, ranging from social media engagement to governance participation and on-chain deposits. Here are some example tasks to get you started.
Social Media Engagement
To help provide its community with as much valuable information as possible, Minterest actively shares all protocol updates, announcements and key information on Twitter, Discord and Telegram.
By following Minterest on Twitter and liking and retweeting posts, you’ll stay up to date and tick off Galxe quests along the way!
You can see all the relevant posts to engage with here on the Galxe campaign page.
On-Chain Deposit
Deposits and borrows are now live on Minterest via the Mantle Network. Depositing into the wMNT market on Minterest is quick, easy, and a great way to earn competitive yields.
To access the site from Galxe, click on the “Detail” hyperlink pictured below for each on-chain task. This will take you directly to the Minterest application on Mantle.
Click on the ‘Deposit in wMNT market’ link on Minterest’s Galxe quest page
Select the wMNT market on the interface
Click “Supply” in the top right-hand corner
Confirm the amount you want to deposit
See your deposit on the homepage UI
Here is a quick video guide on going through the lending process on Minterest.
That’s it; you’re now earning yield and have ticked off another Galxe quest!
Activating Governance Participation
Another quest on the Minterest list is to activate governance participation, which is as simple as toggling the slider when you deposit. Doing this makes you eligible to earn MINTY as a part of the buyback process.
With Minterest, up to 100% of net protocol fees are intended to fund MINTY buybacks. By staking your MINTY, you may receive buyback rewards, and potentially earn additional MINTY!
The video below shows a simple guide to toggle and approve the transaction.
Fee‑routing percentages, reward amounts, and yield levels are targets based on current protocol parameters and may change through governance, audits, or market conditions; they may be modified, delayed, or suspended without notice. Results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
FusionX is a leading DEX within the Mantle Network. Recognised for its cost-effective transaction model, FusionX provides users with a platform for trading at significantly lower fees compared to traditional networks like Ethereum mainnet.
This efficiency is a key factor in FusionX’s appeal, offering users a dual advantage of reduced costs and enhanced trading experiences, as well as complete decentralisation.
Minterest: Enhancing Yield Generation
Minterest is a DeFi lending protocol that introduces several innovative features to the lending and borrowing sector, as well as a comprehensive multi-chain roadmap aimed at bridging the lending and borrowing gap.
Its Buyback Engine is designed to route up to 100% of net protocol fees to on‑chain buybacks for eligible MINTY stakers and governors when activated, subject to governance approval, available reserves, and market conditions. The model used by Minterest ties the protocol’s success directly to its users’ benefits — as protocol TVL increases, users may receive greater $MINTY rewards.
The Minterest Solvency Engine provides an automated approach to the issue of insolvent loan liquidations. By placing a premium on precision, efficiency, and automated solutions, the engine aims to minimise the risk of toxic debt and enhance user benefits.
A Partnership Aimed at Improving DeFi
The partnership between Minterest and FusionX is a fusion of technical innovation and cost efficiency that is set to redefine user experience in the DeFi ecosystem.
Minterest will integrate FusionX into its Solvency Engine pipeline to help maintain healthy positions for Minterest protocol users while driving transaction volume to FusionX and increasing fees generated for its LPs. By merging Minterest’s exceptional yield-generation capabilities with FusionX’s efficient and decentralised trading environment, users could benefit from high yields and low-cost decentralised transactions.
Stay tuned for further development updates and to learn more about the opportunities this collaboration brings!
Join the Minterest and FusionX communities on Discord, Twitter and Telegram.
Fee‑routing percentages, yield improvements, and risk‑reduction targets are intended goals based on current protocol design and may change through on‑chain governance, audits, or market conditions; they may be modified, delayed, or suspended without notice. Figures and outcomes are illustrative only; results are not guaranteed, and nothing herein constitutes financial, legal, or investment advice.
These challenges became more pronounced through 2022 – 2023, as DeFi’s TVL decreased by 75%. While this was largely due to a string of adverse black swan events, such as the Terra crash and the bankruptcy of FTX and 3AC, many investors simply saw better opportunities outside DeFi. They moved their capital to more stable or risk-averse investments and said goodbye to the risks of DeFi.
The problem of rotating capital and a lack of sticky liquidity (investments that are held long-term) highlight the need for more safe and reliable DeFi investment options. Although stablecoins are well-positioned to solve this issue by offering stability and predictability, their integration into existing DeFi platforms has limitations.
The Current Limitations of Stablecoins in DeFi
One key issue is in generating substantial returns. Many platforms offer lower yields on stablecoin deposits, making them less attractive for long-term investors.
Another challenge is the user experience in DeFi platforms. The complexity of products is often daunting – especially for newcomers. The technicalities involved in lending, borrowing, and yield farming with stablecoins require a steep learning curve, deterring potential users from fully engaging with these platforms.
Lastly, there’s a question of trust and security. The DeFi space has witnessed its share of security breaches and failed projects, shaking investor confidence. Users are increasingly seeking platforms that not only offer the stability of stablecoins but also provide advanced security measures and transparent operations.
These challenges create a gap in the market – a need for a platform that can maximise the potential of stablecoins while offering an accessible, secure, and high-yield environment for both seasoned investors and new entrants.
Minterest: Enhancing DeFi with Stablecoins
Minterest aims to be a game-changer in the lending and borrowing sector by redefining how stablecoins are used. It tackles the issues head-on, providing a platform that not only embraces the stability of stablecoins but also maximises their potential in a user-friendly environment.
Stablecoin Yield Gets Real
All lending positions on Minterest are met with additional yield in the form of $MINTY tokens – given as a reward for supplying liquidity to borrowers. Borrowers also receive $MINTY rewards, which can help negate the costs associated with taking a borrowing position.
This attracts capital and retains it, providing an effective counter to the trend of mercenary capital, where investors move in and out for quick gains.
User-Friendly DeFi Experience
Understanding the complexities involved in DeFi, Minterest simplifies the experience. It offers a platform where new users can easily navigate stablecoin lending and borrowing across multiple blockchains and gauge the health of their position – while aiming to reduce unfair liquidations through its Solvency Engine.
Minterest’s user-centric UI and UX is key to attracting and retaining a broader user base, bridging the gap between traditional and decentralised finance.
Security and Trust
In an environment where trust is paramount, Minterest prioritises security and transparency.
Minterest has demonstrated a commitment to maintaining high security standards. The protocol has successfully completed seven audits to date by leading firms, including Trail of Bits, Hacken, and PeckShield.
With the most recent Zokyo audit scoring of 94/100 and a proactive stance on addressing findings, Minterest continues to solidify its position as one of the more established DeFi platforms.
Charting a Stable Future with Minterest
As the DeFi landscape evolves, the growing need for stable, low-risk assets like stablecoins is reshaping the lending and borrowing sector, offering a reliable alternative to the high volatility typically associated with cryptocurrencies.
By capitalising on this trend, Minterest is addressing the immediate needs of investors and setting a precedent for the future of DeFi.
Its high-yield offerings on stablecoin investments present a compelling case for retail and institutional investors, distinguishing the platform from competitor products offering significantly lower returns.
The platform’s approach goes beyond providing attractive yields; it’s about building a sustainable and stable DeFi ecosystem. By incentivising long-term engagement and aiming to offer stability during market fluctuations, Minterest is playing a crucial role in retaining capital within the DeFi space. All this will be done while helping the $MINTY community gain access to high yields and a user-friendly and trustworthy lending and borrowing experience.
To learn more about what Minterest is building and how you can get involved, check out the roadmap, join the $MINTY community on Twitter, and drop by the Telegram or Discord channel for a chat!
All references to fee‑routing percentages, yields, interest rates, and borrowing terms are illustrative and based on current protocol parameters. They may change at any time through on‑chain governance, audits, or market conditions without notice. Lending or borrowing on Minterest involves smart‑contract, market‑price, and liquidation risks that can lead to loss of principal. Past performance is not indicative of future results. Nothing herein constitutes financial, investment, legal, or tax advice—always conduct your own research and consult professional advisers before participating.
Please Note: Minterest is live on Mainnet Ethereum in a Private Launch phase and scheduled to be deployed on Mantle in January 2024.
What is Minterest
Minterest is a decentralized lending platform that aims to offer competitive, sustainable returns on their deposited assets while reducing exposure to predatory liquidations.
We’ll get into exactly what that means in a moment, but the first thing you should know about Minterest is what it will look like to be a user. Minterest has a user-friendly app dashboard that shows your current positions, position health, and what you’re earning on your assets. Borrowers and Lenders both have the same UI.
The next important topic for depositors or lenders is Minterest’s Health Gauge. Like others, this mechanism helps keep track of position and protocol solvency. The key difference lies in how Minterest handles insolvent positions.
Solvency Engine
The Solvency Engine is arguably the most important piece to the Minterest ecosystem. With the user’s interests at heart, the protocol can attract the liquidity it needs to succeed. Minterest’s solvency engine addresses this challenge. By creating and maintaining the solvency engine in-house, there is no need to incentivize third parties to liquidate a position. This is beneficial for two reasons:
It is intended to mitigate the predatory aspect of liquidations: Liquidators profit from the distressed positions of borrowers and often take far more than is required to get these positions back into a healthy state. The Solvency Engine’s sole focus is rescuing positions, not profiting from them.
Minterest is designed to redistribute fees collected back to the protocol users, aligning incentives directly with liquidity providers. The model is designed to route up to 100 % of net protocol fees* back to $MINTY ecosystem participants.
A Cross-Chain Future
Minterest plans to tap into the $25B of currently fragmented liquidity, offering users a deep pool of liquidity to borrow irrespective of the chain. Here’s how the cross-chain integrations with industry-leading builders LayerZero and Swing work. Our first non-Ethereum deployment will be on Mantle, a new optimistic Layer 2 that uses the first modular data availability solution.
Get ready for Mantle and Minterest to go live in January 2024!
MINTY Flywheel
Every protocol needs its kingmaker, and that’s the MINTY flywheel. With unique incentives around supplying and borrowing, Minterest incentivises users to stay on the platform, continue to collect their share of fees and build their stake, which invariably attracts new users. This is about building a self-sustaining ecosystem that allows Minterest to become a resilient liquidity train.
Security is Paramount
Security is one of our biggest concerns at Minterest hence we put the protocol through its paces through reputed and renowned auditors, including Trail of Bits, Peckshield, Hacken, and Zokyo. That’s seven audits in total as of November 2023!
Minterest NFTs
Minterest NFTs give (app.minterest.com) is currently operating in a private launch phase on mainnet Ethereum, allowing select whitelist and Minterest NFT participants access to supply and borrow.
Minterest NFTs can grant users bonus MINTY rewards; you can see the specific details for how the rewards work here.
But don’t let that stop you from looking around the app today and letting us know what you love AND what you would like to see improved. We’re going to be going LIVE on Mantle Network for their Moonshot campaign on January 4th, so get prepared by checking out the app today!
You can keep up to date with community activities, learn more about the protocol, and get questions answered in our Discord, Twitter, or documentation.
Have a #MINTYFRESH day!
Figures, timelines, fee‑routing percentages, yield boosts, and interest rates are illustrative based on current parameters and may change via on‑chain governance, audits, or market conditions; they may be modified, delayed, or suspended without notice. Borrowing involves collateral and liquidation risk—market movements can lead to loss of principal. Past performance is not predictive of future results. Nothing herein constitutes financial, investment, legal, or tax advice.
Minterest’s deployment on the Mantle Network, an Ethereum Layer-2 modular blockchain, marks a crucial step in its roadmap to broaden cross-chain interactions, minimise liquidity fragmentation, and expand accessibility for DeFi users. This integration with Mantle Network’s innovative technology embodies Minterest’s commitment to consistently upgrade the user experience.
Innovative Technology at the Core
At the heart of this partnership is the Mantle Network. It utilises Optimistic rollups for efficient transaction processing, significantly boosting speeds and lowering costs while upholding Ethereum’s renowned security features. Mantle Network’s distinct ‘modular’ architecture, in contrast to the conventional ‘monolithic’ structure, enhances efficiency and scalability by separating transaction execution from data storage.
The integration also features the ultramodern Eigen Data Availability (EigenDA) technology, pioneered by EigenLayer. This innovative solution promises to escalate Ethereum’s data handling capabilities to new heights, potentially achieving speeds of up to 1TB per second. Mantle, through its Mantle DA solution, powered by EigenDA technology, is at the forefront of this data availability revolution.
Enriched User Experience With $MINTY x $MNT Integration
The synergy between Minterest and Mantle Network is poised to bring a plethora of benefits to users:
Optimistic Rollups: Accelerates transactions and slashes fees, enhancing the efficiency of DeFi lending and borrowing for Minterest users.
EVM Compatible L2: Ensures seamless access to the Minterest platform using familiar tools, while inheriting the robust security of Ethereum’s base layer.
Liquidity Boost: More liquidity on Minterest’s platform post-integration can translate to more competitive lending and borrowing rates.
Enhanced Network Capacity: Mantle’s capability to handle high transaction volumes supports Minterest’s scalability.
Interoperability: The integration aligns with Minterest’s strategy to bridge DeFi liquidity gaps across multiple blockchains.
Join the Movement
We’re excited to invite the community to be a part of this transformative journey. Get involved with the Mantle x Minterest Zealy Quests for an opportunity to earn $MINTY rewards.
Keep an eye out for upcoming announcements detailing how the $MINTY community can actively participate in and benefit from Minterest’s planned deployment onto Mantle Network. For the latest news and updates, make sure to visit the blog, and don’t forget to join Minterest and Mantle Network on social media and in our community channels to connect and discuss!
Figures (including throughput claims), fee‑routing percentages, yields, interest rates, and borrowing terms are illustrative targets based on current parameters. They may change at any time through on‑chain governance, audits, technical upgrades, or market conditions. Borrowing involves collateral and liquidation risk—market movements may lead to loss of principal. Past performance does not guarantee future results. Nothing herein constitutes financial, legal, tax, or investment advice.† “Up‑to” figures denote maximum theoretical values; actual results depend on network and market conditions and are not guaranteed.
Stay tuned to our Telegram and Discord channels every day
Open the daily Christmas Calendar window to reveal the question with us every day at noon UTC time
Answer the question in the respective channel or commenting on X using #JollyMintyXmas
Accumulate correct answers throughout the week to boost your chances of winning a Minterest NFT
🦌 Spread the Joy
Tag your fellow Minterest enthusiasts, invite them to join the fun, and let’s make this holiday season one to remember!
🦌 Campaign Dates
Monday, December 4th and will run through till December the 21st.
Get ready for a month filled with knowledge, festive fun, and cool prizes. The Minterest Jolly Minty Xmas Calendar Campaign is our way of saying thank you for being part of our incredible community.
NFT perks, yield boosts, prize pools, and campaign dates are subject to change via governance decisions, technical updates, or market conditions and may be modified, delayed, or withdrawn without notice. Results are not guaranteed, participation involves risk, and nothing herein constitutes financial, investment, legal, or tax advice. Actual yield boosts depend on NFT tier, market liquidity, and emission schedules.
Centralised lenders such as Celsius Network and BlockFi were a major focus of the 2021-2022 cycle, with the allure of double or even triple-digit yields catching the attention of many investors. However, the downfall of these platforms caused things to come to an abrupt halt, leaving the industry to face a reality check.
Fortunately, the future is looking bright: 2023 is a new year, and investor focus has shifted back to where it should be – DeFi!
Before we look at how decentralised solutions offer a more sustainable, risk-averse way to earn yield, let’s break down what caused these collapses and the things to avoid moving forward.
The Downfall of Centralised Lending
Centralised crypto lending, a once hyped financial frontier, faced significant setbacks over the past couple of years following the collapse of major platforms.
Celsius Network: High Yields, High Risks
Celsius Network operated as a custodial asset manager, offering regulated loans and yield opportunities of over 20% APR. Users deposited coins and tokens like $BTC and $ETH, which Celsius then used for other investments and lending activities.
The downfall of Celsius Network began with its use of risky on-chain leverage and over-exposure to volatile markets.
Millions of dollars of Celsius funds and customer deposits were held on the Terra Blockchain. When Terra’s token, $LUNA, collapsed and its algorithmic stablecoin, terraUST, de-pegged, this resulted in a massive devaluation of Celcius’ assets.
In June 2022, the company froze withdrawals, swaps, and transfers, citing “extreme market conditions“.
This situation, compounded by layoffs and a lawsuit alleging market manipulation, led to Celsius filing for Chapter 11 bankruptcy in July 2022, revealing a $1.3 billion hole in its balance sheet.
BlockFi: Mismanagement Meets Volatility
BlockFi’s model revolved around interest-earning accounts and crypto-backed loans. It allowed users to earn interest on their crypto holdings or borrow USD against their deposited assets.
The platform promised ~10% annual earnings on deposits and offered loans with a maximum initial Loan-To-Value (LTV) ratio of 50%.
BlockFi’s collapse was primarily driven by mismanagement and exposure to market risks. The company’s downfall was accelerated by the fall of crypto exchange FTX and its sister trading firm, Alameda Research. The company had significant exposure to these firms, totalling around $1.2 billion, and filed for bankruptcy in November 2022.
While legal efforts to return customer assets from bankrupt firms such as FTX, Alameda, and Three Arrow Capital have been initiated, recoveries and timeframes remain uncertain.
Implications for the Crypto Lending and Borrowing Sector
These cases highlight the risks of centralised crypto lending: overreliance on market stability, counterparty risk, and a lack of transparency.
This also underlines the importance of risk management and operational transparency in the lending and borrowing sector – transparency offered by decentralised alternatives.
The Advantages of Decentralisation
Decentralised lending and borrowing platforms offer distinct advantages that address the shortcomings of centralised counterparts, like Celsius and BlockFi.
DeFi’s core benefits lie in its inherent design and operational framework:
Transparency and Trust: Decentralised protocols offer transparent, immutable transactions, enabling users to easily track their funds and understand how they’re being used.
Self-Custody and User Control: Web3 wallets and their self-custodial design allow users to maintain total control over their assets, reducing counterparty risk and placing ownership and responsibility directly in the hands of the user.
Programmable and Auditable: Automation through smart contracts enhances efficiency and reduces human error. When using a new protocol, ensure its smart contracts are audited and comprehensively tested by reputable firms and a trusted community of users (Minterest just completed its 7th audit by Zokyo.)
Market Accessibility: DeFi lending and borrowing platforms offer a more inclusive model, opening the door to a broader range of participants from varied financial backgrounds.
Built for Stability and Security: By not taking on debt or engaging in high-risk investment strategies, DeFi lending and borrowing protocols aren’t prone to bankruptcy and cannot misuse customer deposits. This approach, combined with over-collateralisation and algorithm-driven interest rates, ensures solvency even during periods of extreme market volatility.
Minterest: An Emerging Solution in DeFi Lending and Borrowing
Minterest is innovating and advancing DeFi lending and borrowing by offering users a platform with competitive yields, strong smart contract security, and advanced protocol features. Let’s take a look at how it works and the benefits it offers users.
Real Yield Model
Unlike the often misleading high-yield promises of centralised platforms, Minterest aims to provide a sustainable yield generation strategy.
The model is designed to route up to 100% of protocol fees back to users. This incentives strategy challenges the cycle of rotating and mercenary capital and growing protocol TVL over the long term.
Buyback Mechanism
At Minterest’s core is the Buyback Mechanism, The Buyback Engine is designed to route up to 100% of net protocol fees to on‑chain buybacks for eligible MINTY stakers and governors when activated, subject to governance approval, available reserves, and market conditions.
The system dynamically adjusts the distribution based on each user’s contribution, enhancing rewards through loyalty bonuses and compounding future rewards.
Solvency Engine
Minterest’s Solvency Engine offers an innovative approach to liquidations. The engine continually monitors all borrowers for solvency using real-time on-chain price data, aiming to keep liquidations neither excessive nor repetitive.
This is intended to reduce the need for substantial discounts to lure third-party liquidators and support a cost-effective process that aligns with the interests of the protocol and its users.
Cross-Chain Integrations
Minterest’s integration with Swing and LayerZero brings a new era of multi-chain lending and borrowing.
Swing’s bridge aggregator provides a unified interface for optimal cross-chain transactions, while LayerZero’s omnichain protocol connects with any blockchain, ensuring versatility and long-lasting utility. These integrations will be available in Phase 3 of Minterest’s Roadmap.
Comprehensive Security Audits
Minterest’s commitment to security is evident through its comprehensive and ongoing auditing process – recently passing a fourth audit with Zokyo.
The Future of Crypto Lending and Borrowing
Crypto lending and borrowing is undergoing a transformative shift. The downfall of major centralised platforms and the loss of billions of dollars have laid bare the risks and limitations of CeFi models.
Decentralised alternatives offer transparency, user autonomy, and operational resilience. Minterest builds upon this with features like buybacks, real yield and cross-chain integrations.
The end goal is to offer not just a quick-fix solution to centralised models, but to build DeFi’s high-yield, security focused, and user-centric lending and borrowing protocol.
To learn more about what Minterest is building and how you can get involved, check out the roadmap, join the $MINTY community on Twitter, and drop by the Telegram or Discord channel for a chat!
Figures—including fee‑routing percentages, yield levels, interest rates, and borrowing terms—are illustrative targets based on current parameters and may change through on‑chain governance, audits, or market conditions without notice. Borrowing involves collateral and liquidation risk: adverse price moves can lead to loss of principal. Past performance is not indicative of future results. Nothing herein constitutes financial, investment, legal, or tax advice.
The interest rate is dynamically adjusted through an algorithm that responds to lending and borrowing transactions. In active market conditions, Minterest’s interest rates may undergo frequent updates, driven by the volume of lending and borrowing transactions. However, it’s important to note that these updates are not instantaneous and may take some time to be reflected.
When there’s a shift in the market—such as a sudden increase in deposit volume—the Utilisation Ratio decreases, indicating an excess of liquidity. Minterest’s protocol detects this change and automatically lowers interest rates to encourage borrowing.
Conversely, if the market experiences a surge in borrowing, the Utilisation Ratio increases. Minterest’s system reacts by raising the interest rates to attract more liquidity, ensuring lenders are adequately rewarded for their risk during high-demand phases.
Minterest’s dynamic interest rate model and its underlying technology can translate into potentialbenefits for users.
Minterest’s Dynamic Model Illustrated
Dan, a user on Minterest, has lent 10 $ETH and is looking to borrow $USDC. Initially, the total $ETH available for lending on the platform is 100, with 20 already borrowed. This sets the Utilisation Ratio at 20%, and the interest rate for borrowing $USDC is 0.84%.
Market Change: A Bullish Report
A bullish market report triggers an increase in borrowing. The total $ETH borrowed jumps to 50, pushing the Utilisation Ratio to 50%. Minterest’s dynamic model responds by adjusting the interest rate for borrowing $USDC to 2.1%.
Impact on Dan: Balancing Lender and Borrower Benefits
As a lender, Dan benefits from the increased interest rates due to the higher borrowing demand, enhancing his returns on the lent $ETH. This responsiveness to market demand helps keep his assets productive and his returns better aligned with market conditions.
However, as a borrower of $USDC, he now faces a higher interest rate, reflecting the heightened market activity.
Despite this, the real-time adjustments to interest rates mean that Dan is not subject to static rates that may be out of sync with the market. He can access loans at rates that more closely reflect current market liquidity, potentially lowering borrowing costs during periods of high liquidity.
Please Note: This illustration is purely a hypothetical scenario.
The balance Minterest maintains between borrower demand and lender supply can contribute to a stable DeFi environment. This stability attracts more users, which can lead to an increase in the platform’s TVL, creating a positive feedback loop that benefits all participants.
Wrapping Up
Minterest’s dynamic interest rate model and automated risk management protocols are designed to directly address the needs of borrowers and lenders in the DeFi space. It’s a model that doesn’t just react to the market—it moves with it, aiming to keep borrowers and lenders engaged in a fair and balanced financial ecosystem.
Borrowers benefit from rates that reflect market liquidity, potentially reducing costs when liquidity is high. Lenders gain from increased returns aligned with market demand, ensuring their assets work effectively for them.
The system’s automated adjustments to collateral and liquidation thresholds help maintain a stable lending environment, helping to mitigate the risks associated with market volatility.
Through these mechanisms, Minterest aims to provide a lending and borrowing platform that is not only efficient and competitive but also security-focused and user-centric.
To learn more about how Minterest is improving DeFi lending and borrowing, check out some recent articles, follow Minterest on Twitter, and drop by the Telegram or Discord channel for a chat!
Dynamic-rate behavior, fee routing, yield levels, interest rates, and risk-management features reflect current protocol design and may change via governance, audits, upgrades, or market conditions without notice. Borrowing involves collateral and liquidation risk—adverse price moves can cause loss of principal. Figures (including utilisation ratios and percentage rates) are illustrative examples only and not guarantees of outcome. † Scenario values show hypothetical calculations for explanation; actual rates depend on live market utilisation, liquidity, and protocol parameters. Nothing herein is financial, investment, legal, or tax advice—always do your own research and consult a professional adviser before participating.
The Dripper contract adheres to the formula, with rewards distributed at the end of each period:
R = X*Y
Amount of fees accumulated in a period = X
A predetermined percentage of this amount is allocated for distribution in the next period = Y
The drip amount is determined using the formula: A=D∗(R/H), where A is the $MINTY amount sent to the Buyback contract, D is the number of hourly portions, and H is the number of hours in the period.
Example: The starting setup is 30 days, ending on October 1st. On September 15th, the period length is adjusted to 60 days.
The $MINTY stash is 100 tokens with an 80% distribution rate (Y). On October 1st, a new period is initiated with 80 tokens to be distributed over 60 days at a rate of 0.055 tokens per hour.
Buyback Calculations Details
Rewards within the Buyback system reflect each account’s weighted contribution, considering vested $MINTY, unclaimed rewards, and additional stakes.
For instance, an account with a combined weight of 15 units (from vested and emission rewards) stakes an additional 5 MINTY, increasing their weight and share in the reward pool.
Loyalty bonuses further enhance the weight, amplifying the user’s rewards. The system updates each user’s Buyback weight with every Minterest interaction, such as staking new $MINTY rewards, thereby compounding future rewards.
Consider a 25% loyalty bonus on a 20-unit weight. This would boost the total weight and the user’s share of rewards to 25 units.
Desclamer: The Buyback weight continues to update every time the user performs an operation on Minterest (i.e. supplying).
New $MINTY rewards are staked, updating the Buyback weight of the user, and compounding rewards as the next distribution of rewards from the Buyback incorporates the updated weight.
Distribution Dynamics
The distribution of rewards is determined through a lazy indexing mechanism, used to track $MINTY accumulation per unit of weight.
The reward for each user is calculated by multiplying the delta (the change in index state since the last interaction) by the user’s weight.
Wrapping Up
Minterest’s Buyback system, a central feature of its reward distribution strategy, distinguishes itself in the DeFi space by prioritising user incentives over protocol benefits. It combines user participation with calculated rewards based on the protocol’s performance.
By factoring in loyalty bonuses and a transparent distribution methodology, the system aims to provide a fair and dynamic allocation of earnings, aligning the benefits of the protocol’s growth with its user base.
To learn more about how Minterest is improving DeFi lending and borrowing, check out some recent articles, follow Minterest on Twitter, and drop by the Telegram or Discord channel for a chat!
Fee‑routing percentages, reward rates, loyalty bonuses, and distribution schedules are illustrative targets based on current protocol parameters and may change via on‑chain governance, audits, or market conditions without notice. Participation involves smart‑contract, market‑price, and liquidation risks that can lead to loss of principal. Past performance is not a guarantee of future results. Nothing herein constitutes financial, investment, legal, or tax advice.
Let’s examine the scoring process and the key findings from this latest Zokyo audit.
Protocol Updates
This audit concentrated on the Flasher.sol and Liquidation.sol smart contracts. The former is a new addition, enabling the protocol to execute liquidations via flash loans—a mechanism that allows borrowing and repaying within the same transaction.
To support this new feature, the Liquidation.sol contract received updates that ensure the liquidation logic aligns with the instantaneous loan settlement.
Zokyo’s Audit Approach and Scoring Process
Zokyo is a cybersecurity firm specialising in blockchain technology and smart contract auditing. They’ve tested code for hundreds of top-tier web3 protocols, including LayerZero, SushiSwap, 1inch, Polygon and Solana.
Having worked with Zokyo before and given its comprehensive auditing process and proven track record, Minterest decided to engage with them for a fourth audit.
Zokyo’s audit process is extensive, starting with automated scans for common vulnerabilities followed by an in-depth manual review to catch more complex issues. Their methodology also includes cross-comparison with industry leaders and testing against a wide variety of attack vectors.
They rank findings from critical, which could cause significant harm, to informational, which present no immediate risk. The final score reflects the contract’s security status, with a higher score indicating fewer risks.
Flasher.sol: Technical Breakdown
The Flasher.sol contract was the primary focus of Minterest’s latest audit, as this newly written code plays a key role in the protocol’s updated liquidation strategy.
Flasher.sol: This contract enables Minterest to utilise flash loans for liquidations. Flash loans allow for immediate borrowing and repayment within the same transaction block. Flasher.sol ensures liquidations are executed efficiently, with minimal market impact.
Audit Findings
Scope of Review: The audit focused on the newly implemented Flasher.sol contract and the enhancements made to the Liquidation.sol contract, which are central to Minterest’s shift towards flash loan-based liquidations.
Issues and Resolutions: Predominantly minor and informational issues were identified—related to code readability and event logging. These were quickly resolved by the Minterest team.
Security Insights
Scorecard: Minterest’s updated contracts received a high-security score of 94/100, reflecting the absence of any critical vulnerabilities.
Operational Security: The audit highlighted the necessity for dependable backend services and the secure handling of private keys.
Security as a Priority
Minterest’s consistent auditing strategy, with seven audits to date and prior Public Access, including those by Trail of Bits, Hacken, and PeckShield, demonstrates a commitment to maintaining a high security standards.
With the most recent Zokyo audit scoring of 94/100 and a proactive stance on addressing findings, Minterest continues to strengthen its position amongst the most reliable and trustworthy DeFi protocols.
Audit scores and findings reflect the code state at the time of review and do not guarantee future security. Smart‑contract use involves technical and market risk; new vulnerabilities may be discovered. Nothing herein constitutes financial, investment, legal, or tax advice.
Whether you’re new to DeFi or a lending & borrowing veteran, there’s something for everyone. Through a series of quests, you can earn rewards, such as $MINTY tokens and NFTs.
To encourage active participation and ongoing education, you’re required to successfully complete the quests in the preceding tiers. This incentives model is designed by Minterest to reward consistency and progression.
For example, incentives may be minimal for users who complete beginner level quests. However, as you progress and deepen your understanding of Minterest’s ecosystem, you’ll earn more substantial XP, additional tokens or NFTs, and even be given the opportunity to help influence the platform’s future direction as an ‘OG Mintreprenuer’.
Let’s take a quick tour of The Quest Map!
Tier 0: Base Camp
The journey kicks off at Base Camp.
There are no prerequisites, just simple quests and a straightforward way to accumulate XP, level up, and earn rewards.
By completing tasks like following Minterest on Twitter and joining the Discord and Telegram channels, you’ll earn your first 100 XP and unlock the next questline.
Tier 1: Explorer’s Trail
The Explorer’s Trail is where the adventure begins!
These dynamic quests are regularly updated to keep things interesting and the XP stacking up.
From sharing Minterest blog posts and announcements to participating in community polls, there’s always an opportunity to earn points while staying updated on what’s happening in the $MINTY universe!
Tier 2: Scholar’s Pathway
The Scholar’s Pathway takes things up a notch.
This is where you can showcase your Minterest knowledge through quizzes based on our latest blogs.
Quests to Expect:
Tier 3: Pioneers’ Peak
Pioneers’ Peak is the pinnacle of your $MINTY quest!
This is where you transition from being a member, to a leader. These quests are designed to involve you directly in the Minterest ecosystem, from joining community calls to making transactions on the Minterest platform.
Quests to Expect:
Join a Community Call: Attend a Minterest community call and enter the secret password shared during the call. Your chance to directly engage with the team and community!
Make Your MINTY NFT Your PFP: Show off your $MINTY pride by making your Minterest NFT your Twitter profile picture. If you don’t have one yet, fear not! You can also win one in the quest earning you a potential APY boost too!
Supply an Asset: Transition from observer to active participant by supplying an asset into the Minterest platform.
Borrow an Asset: Need to borrow an asset? Do it through Minterest and bank some XP.
Share Your Positions: Whether you’re borrowing or lending on Minterest, share your positions on Twitter—each share earns XP and offers a great way to showcase your personal journey and insights.
By completing the Pioneers’ Peak quests, you’ll have the opportunity to earn additional $MINTY tokens, as well as exclusive NFTs that grant you Whitelist Access. Each completed quest earns you 300 XP and a hands-on experience with the platform!
Your Next Move
Minterest’s Zealy quests offer a multi-tiered expedition through $MINTY universe. From initial exploration to active participation and influence—each quest is a stepping stone.
Along the way, earn XP, climb the leaderboard, and unlock exclusive perks and rewards like Whitelist NFTs and $MINTY tokens.
Quest structure, XP amounts, reward types, and availability are subject to change via governance decisions, campaign updates, or market conditions and may be modified, delayed, or withdrawn without notice. Results are not guaranteed, and nothing herein constitutes financial, investment, legal, or tax advice. “Up‑to” or “potential” boosts denote maximum theoretical values; actual boosts depend on NFT tier, emission schedules, and market factors.
As the DeFi ecosystem has matured, the need for more secure and efficient bridging solutions has become increasingly evident. The latest generation of bridges and cross-chain solutions incorporate advanced features, distinguishing them from their predecessors:
Cryptographically Signed Messages: Modern bridges use signed messages to instruct smart contracts on the destination chain.
Multi-Sig Wallets: Multi-sig wallets sign off on deposits and withdrawals during bridging.
Rollups: Solutions that bundle sidechain transactions into a single transaction and generate a cryptographic proof verified on the mainchain.
Decentralized Relayers: A network of relayers, backed by collateral, ensures accurate cross-chain information transfer.
Cryptographic Proofs: Techniques like zk-SNARKs and rollups validate transactions.
Interoperability Protocols: Layer-0 protocols, like Polkadot’s relay chains, facilitate communication between different blockchains.
Introducing these technologies and many more marks a significant step forward in DeFi, intended to support safer and more reliable cross-chain interactions.
Bridge Aggregators: Introducing Swing
As the DeFi sector grows, navigating new technologies can challenge everyday users.
Bridge aggregator Swing offers a unified interface to simplify this, scanning multiple bridges to find the best routes based on fees, speed, and liquidity.
Swing’s Benefits:
Aggregation: Aggregates 60+ bridges and DEXs for optimal cross-chain transactions.
Efficiency: Can eliminate manual bridge searches, automatically finding the best path.
User Experience: Intuitive interface for quick fee and transaction time comparisons.
Security: Integrates with trusted and audited bridges.
Swing aims to address the complexities of navigating multiple bridges by providing a more streamlined user experience.
LayerZero: Advancing Cross-Chain Communication
Beyond bridge aggregators, omnichain protocols like LayerZero offer a deeper level of integration with multiple blockchains, serving as a universal connector.
LayerZero Highlights:
Omnichain Design: Connects with any blockchain, ensuring versatility and long-lasting utility as different blockchains emerge.
Efficiency: Users can bypass traditional bridges, reducing fees and transaction times.
This approach allows for direct cross-chain interactions, sidestepping the need for several intermediaries.
Minterest’s Swing Integration
As Minterest continues to innovate, it’s integrating leading cross-chain protocols—Swing and LayerZero—to enhance its multi-chain lending and borrowing capabilities.
Minterest’s collaboration with Swing aims to streamline the user experience, eliminating the need for multiple intermediaries and allowing users to transfer assets between chains—all with the click of a button on the Minterest platform!
Let’s look at how the integration works and its benefits to LPs and borrowers.
Traditional Approach:
A user holding $USDC on Polygon wants to capitalise on a high-yield opportunity on Minterest’s Ethereum platform. Typically, they’d undergo multiple steps on an external platform to bridge their $USDC, involving several transactions and intermediaries.
With Minterest & Swing:
Disclaimer: The following is a hypothetical example for illustrative purposes only. Minterest does not have immediate plans to deploy on Polygon.
1. User with $USDC on Polygon sees a lending opportunity on Minterest’s Ethereum.
2. They open the Swing modal for bridging.
3. The modal detects the $USDC on Polygon.
4. With a few clicks, Swing bridges the $USDC to Ethereum.
5. The user can now lend the $USDC on Ethereum.
Thanks to Swing, users enjoy a more streamlined lending and borrowing experience and can quickly capitalise on cross-chain opportunities with reduced steps and costs.
Minterest’s integration with LayerZero’s omnichain protocol offers a direct connection to multiple blockchains. This enables users to tap into opportunities on various chains without the need to move or convert assets. Essentially, users can earn yields on assets in their native form, sidestepping additional costs like bridge and swap fees.
Let’s take a look at an example scenario:
Disclaimer: The following is a hypothetical example for illustrative purposes only. Minterest does not have immediate plans to deploy on Arbitrum.
A DeFi user wants to earn yield on Arbitrum but is holding $WBTC on Ethereum.
Traditional Approach:
1. Lend $WBTC on an Ethereum protocol to earn interest.
2. Borrow $USDC against the $WBTC collateral.
3. Transfer $USDC to Arbitrum using a bridge, incurring fees.
2. Directly borrow $USDC on Arbitrum via LayerZero, eliminating the bridge step.
3. Begin yield farming with $USDC on Arbitrum.
By integrating LayerZero, Minterest allows users to skip the bridging phase, saving on fees and time. This efficient method lets them swiftly tap into cross-chain yield farming opportunities.
Wrapping Up
Cross-chain solutions have evolved from early direct connections with security issues to today’s sophisticated bridges, aggregators, and omnichain protocols.
Minterest’s Multi-Chain Strategy incorporates the advanced technology behind Swing and LayerZero to welcome a new era of multi-chain lending and borrowing.
With Swing, users benefit from a unified interface that aggregates multiple bridges, simplifying cross-chain transfers and ensuring optimal routes for transactions.
LayerZero’s omnichain protocol further streamlines multi-chain lending and borrowing, eliminating the hassles of intricate bridging processes.
Together, these integrations allow users to effortlessly move assets across chains, reducing costs and broadening DeFi opportunities.
For a deeper dive into Minterest’s partnerships, upcoming developments, and Multi-Chain Strategy set to roll out in three stages over the upcoming year, explore the recent articles. Engage with the $MINTY community by following Minterest on Twitter, and don’t hesitate to join the conversation on Telegram or Discord!
Cross‑chain throughput figures, fee‑reduction claims, and transaction‑speed improvements are based on vendor documentation and may change as protocols evolve. Actual performance, yield, and cost savings depend on market conditions, liquidity, and network congestion; results are not guaranteed. Participation in lending, borrowing, or bridging involves smart‑contract and market‑price risks that can lead to loss of principal. Nothing herein constitutes financial, investment, legal, or tax advice.
This strategy is part of Minterest’s long-term roadmap, which will run in 3 distinct phases. The LayerZero integration is part of phase 3: Unifying Liquidity, which will run from Q4 2023 – Q1 2025.
By aiming to improve user experience and tackling cross-chain complexities such as reliance on centralised exchanges and expensive bridging fees, this alliance could provide a simpler and potentially more cost‑efficient lending and borrowing across multiple blockchains.
It also opens the door for Minterest’s LPs and borrowers to leverage a broader range of DeFi opportunities, as well as the potential for future protocol collaborations, such as cross-chain liquidations through native asset bridge Stargate.
Let’s take a look at how this integration addresses the challenges of multi-chain lending and borrowing and brings new opportunities to the $MINTY community.
The Challenges of Multi-Chain Lending & Borrowing
Navigating DeFi across multiple blockchains without the appropriate infrastructure presents distinct challenges. These could include costly and time-consuming transactions, the unnecessary use of third parties such as centralised exchanges, and the potential for technical mishaps like sending assets to the wrong chain—to name a few.
The Complexities of Multi-Chain Lending
Consider a user who wants to leverage a yield farming opportunity on Polygon using $MATIC tokens while holding $DAI on Ethereum.
Traditional Approach:
Asset Migration: Swapping $DAI for $MATIC typically involves slippage and exchange fees.
Bridging and Borrowing: Lending $DAI, borrowing $MATIC, and bridging it to Polygon incurs bridging fees and can be time-consuming (several days in some instances).
Missed Opportunities: Delays in asset transfers due to the multiple steps involved might result in missed yield opportunities on Polygon.
Cost vs. Benefit Dilemma: The associated costs can outweigh the gains.
Centralised Exchanges: A DeFi Contradiction
Without access to a direct, decentralised bridge, users often resort to centralised exchanges (CEX) for cross-chain transfers.
This process typically involves transferring assets from a web3 wallet to a CEX and immediately withdrawing those assets to a different chain on the original web3 wallet.
While this approach provides a workaround, it contradicts DeFi’s decentralised nature and introduces several issues:
Security: Centralised platforms pose potential security threats due to a lack of self-custody.
Operational Challenges: Multiple steps, such as withdrawals and deposits, complicate the process.
Fees: Various transactions accrue fees, diminishing profitability.
These challenges underscore the need for a solution that simplifies cross-chain navigation, reduces costs, and enables swift capitalisation on DeFi opportunities.
Minterest Meets LayerZero
Minterest’s LayerZero integration introduces a solution to these challenges, enabling users to leverage opportunities on alternative chains without manually to relocating or converting their assets.
For instance, users may lend assets and earn yields in their native form, potentially reducing intermediary costs like bridge and swap fees. It may also mitigate risks associated with managing multiple wallets and tracking assets across chains.
Real-World Applications
This collaboration is part of phase 3 of Minterest’s multi-chain lending strategy. It extends beyond a technical upgrade, providing tangible benefits and practical applications for everyday DeFi users. Let’s take a look at an example scenario:
Disclaimer: The following is a hypothetical example for illustrative purposes only. Minterest does not have immediate plans to deploy on Arbitrum.
A DeFi user wants to leverage a yield farming opportunity on Arbitrum but is holding $WBTC on Ethereum.
Traditional Approach:
1. Lend $WBTC: Lend $WBTC on an Ethereum-based lending protocol to earn interest.
2. Borrow $USDC: Borrow $USDC against $WBTC collateral.
3. Bridge $USDC to Arbitrum: Use a bridge to transfer $USDC from Ethereum to Arbitrum, incurring bridge fees.
4. Engage in Yield Farming: The $USDC can now be used on Arbitrum for yield farming.
With Minterest and LayerZero:
1. Lend $WBTC: Lend $WBTC on Minterest on Ethereum.
2. Direct Borrowing on Arbitrum: Directly borrow $USDC on Arbitrum via LayerZero, bypassing the need to bridge assets.
3. Engage in Yield Farming: Immediately utilise $USDC on Arbitrum.
This integration means that the user can bypass the bridging step, which could lower fees and reduce the time and complexity involved in the process. The streamlined approach allows them to quickly and efficiently capitalise on the chain-chain yield farming opportunity.
Exploring Cross-Chain Liquidations
The Minterest team is also exploring the possibilities of integrating with protocols such as Stargate—the first fully composable native asset bridge built on LayerZero.
Stargate supports unified liquidity pools and instant guaranteed finality, which could enhance Minteret’s capabilities by facilitating cross-chain liquidations.
Though this prospect remains in the research stage, liquidations across various chains could benefit the Minterest ecosystem by improving capital utilisation and aiming to lower user liquidation costs.
Summary
Minterest’s LayerZero integration simplifies the intricacies of multi-chain lending and borrowing and addresses common cross-chain challenges, such as high fees due to swaps, slippage and bridging expenses.
This collaboration is intended to enhance Minterest’s user experience and can lessen the need for multiple platform interactions and complex asset transfers. It also reduces costs by allowing users to bypass traditional bridges and to lend, borrow, and leverage DeFi opportunities across various chains—without needing to relocate or convert their assets.
Minterest is excited about future advancements and partnerships that will continue to elevate the user experience and expand opportunities within the DeFi space. To learn more about the growing $MINTY ecosystem and how you can get involved, check out some recent articles, follow Minterest on Twitter, and drop by the Telegram or Discord channel for a chat!
Cross‑chain throughput figures, fee‑reduction claims, and borrowing examples are illustrative targets based on current protocol design and may change through governance, audits, or market conditions without notice. Actual performance, yields, costs, and transaction times depend on network liquidity, congestion, and user behaviour; results are not guaranteed. Participation in lending, borrowing, or bridging involves smart‑contract and market‑price risks that can lead to loss of principal. Nothing herein constitutes financial, investment, legal, or tax advice.
This collaboration aims to simplify cross-chain liquidity. With Swing, Minterest can tap into global crypto liquidity, potentially offering users reduced fees, faster transactions, and an intuitive lending and borrowing experience.
Swing & Minterest: Bridging the Divide
Swing aggregates bridges and DEXs to enable seamless asset transfers across blockchains. By integrating Swing, Minterest can save users time and money by bypassing unnecessary transactions and avoiding potential security vulnerabilities that cross-chain lenders and borrowers often face.
In one sentence, Minterest utilises Swing’s advanced features to unlock a little cross-chain magic!
Swing’s Features & Utility:
Connectivity: Links to over 25 blockchains, offering diverse asset management options.
Aggregation: By aggregating 60+ bridges and DEXs, Swing provides a one-stop solution for cross-chain transfers.
Liquidity: Taps into about $6 Billion of ready liquidity, optimising transactions aiming to reduce slippage.
Plug-and-Play Functionality: Swing’s user-friendly widget allows users to quickly review their positions and carry out cross-chain migrations, reducing the typical bridging complexities.
Swing stands out as a unique aggregator in the DeFi space. Unlike traditional platforms, it gives users the autonomy to choose the bridge they trust the most. Every transaction depends on the user’s chosen setup—the bridge and the assets involved.
Minterest doesn’t directly display, transfer, or store bridged assets. Instead, it leverages the Swing widget’s plug-and-play functionality, acting as an intermediary. This allows users to quickly review their positions and carry out cross-chain migrations with fewer steps.
This flexibility ensures that users are not confined to a one-size-fits-all solution but have the freedom to tailor their cross-chain activities based on their preferences and risk appetite.
What does this mean for LPs and borrowers?
Minterest’s goal is to ensure that while the technology behind the scenes may be complex, the user experience remains intuitive, cost-effective and security focused.
Let’s illustrate by comparing a traditional opportunity to one utilising Swing on Minterest.
Traditional Approach:
A user wants to take advantage of a time-sensitive, high-yield lending opportunity on Minterest’s Ethereum platform but is holding $USDC tokens on the Polygon blockchain.
Traditionally, they would have to navigate multiple steps on an external platform to bridge their $USDC from Polygon to Ethereum. This process often involves several transactions and intermediaries, leading to increased costs and wasted time.
With Minterest and Swing:
Disclaimer: The following is a hypothetical example for illustrative purposes only. Minterest does not have immediate plans to deploy on Polygon.
With Minterest’s Swing Integration, the process is streamlined:
The user holding $USDC on Polygon identifies the lending opportunity on Minterest’s Ethereum deployment.
Instead of navigating elsewhere, they open the Swing modal to start the bridging process.
The modal instantly detects the $USDC holdings on Polygon.
With a few clicks, Swing facilitates the bridging of $USDC from Polygon to Ethereum.
The $USDC tokens can now be lent on Ethereum to start earning yield.
The result? A simplified and expanded lending and borrowing experience that allows them to take advantage of cross-chain opportunities in fewer steps, which may lower both time and costs and the usual hassle.
The Future of Multi-Chain Lending & Borrowing
Minterest is gearing up for a significant shift—the introduction of a multi-chain platform by 2025. Central to this is the integration of Swing, which aims to provide lenders and borrowers efficient and secure asset transfers and unlock opportunities across 25+ blockchains!
Here’s what Kyn Chaturvedi, CEO at Minterest had to say about the Swing integration:
“By incorporating this user-friendly bridging tool within the Minterest application, we’ve made it effortless for users to bridge assets to chains supported by Minterest. This tool not only simplifies the user experience but also encourages more users to engage. As a result, this integration contributes to the expansion of our user base and ensures a more accessible and efficient service for our community.”
Users may avoid intricate bridging processes and could supply assets on Minterest across chains in fewer clicks!
This collaboration not only broadens the scope of opportunities for users but also underscores Minterest’s commitment to diversifying and enhancing DeFi’s lending and borrowing sector.
For more insights into Minterest’s partnerships, development announcements and how you can be a part of the $MINTY community, check out some recent articles, follow Minterest on Twitter, and drop by the Telegram or Discord channel for a chat!
Cross‑chain throughput, fee savings, transaction times, and yield outcomes depend on network conditions, liquidity, and user behaviour; they may change or be suspended without notice. Results are not guaranteed, and nothing herein constitutes financial, investment, legal, or tax advice. Figures are approximate and based on third‑party data; actual liquidity and chain coverage may vary.
As Minterest gears up for its public launch early 2024, our team is working diligently to ensure a smooth roll-out. With launch preparations underway, we are ready to reveal a larger strategic roadmap which has been brewing behind the scenes: Minterest’s multi-chain direction.
A New Blockchain Landscape
Between 2022 and 2023, there has been a remarkable surge in the number of Layer 1 and Layer 2 blockchains. With Vitalik, himself, championing an ecosystem of Layer 2s on Ethereum, the emergence of parallel operating L2s like Polygon 2.0 and Optimism, and the availability of rollups-as-a-service that can establish L2s in mere minutes – the blockchain landscape is rapidly changing.
Despite the ambition, these blockchains face a challenge: establishing dynamic ecosystems that draw both substantial user traction and high-value transactions. With most chains being general-purpose, integrating DeFi becomes essential. And, there is a growing demand for reliable lending protocols, with blockchain foundations eagerly scouting for teams and protocols that epitomise security and stability.
Liquidity Fragmentation: The Challenge
Liquidity remains a cornerstone for chains. Yet, over 50% of active liquidity is anchored on Ethereum, while the rest is spread across over 100 chains. This dispersion poses macro inefficiencies and systemic challenges, such as inconsistent token asset pricing across chains to the emergence of incompatible derivative tokens (i.e. multiple wrapped versions of USDT), further fragmenting liquidity.
Total Value Locked Across Chains (source: DefiLlama.com)
As more chains emerge, this fragmentation is set to escalate, possibly hampering the expansion of Web3 liquidity. Addressing this issue becomes vital.
Minterest’s Roadmap to Unify Liquidity
We envisage a multi-chain future where diverse chains can seamlessly interact. Minterest aims to help build a landscape where chains have access to ample, compatible liquidity. The vision is for liquidity to act as a public good and significantly enhance macro-level market efficiency where chains can then focus on their unique offerings and treat access to liquidity as a given.
The aspiration is to expand Minterest’s architecture to pursue authentic cross-chain interoperability. This approach enables lending on one chain while borrowing on another, seamless liquidity migration, swapping of debt assets across chains, and holistic protocol health maintained via the Minterest Solvency Engine that expands to handle cross-chain liquidations among other features.
Minterest’s roadmap now expands into 2025, encompassing three distinct phases.
Phase 1: Public Launch – Q1-Q2 2024
Minterest’s Public Launch on Ethereum and Mantle Network. $MINTY tokens and Minterest NFTs can move across supported Minterest deployments while retaining the same benefits as on the Ethereum deployment.
Phase 2: Multi-Chain Expansion – Q2-Q4 2024
Sequential deployments of Minterest across chosen blockchains. Here, lending and borrowing activities are chain-specific.
Phase 3: Cross-Chain Lending – Q1 2025
Introducing genuine cross-chain lending and enhancing the solvency engine for cross-chain liquidations.
Each Minterest deployment is intended to support liquidity unification, enabling partner chains to tap into an ever-growing liquidity network. The aim is to create a liquidity flywheel effect that could attract additional liquidity.
Stay tuned for additional details on Minterest’s cross-chain design, roadmap, and key partnership announcements.
Phase 1 Roadmap Revision
The comprehensive Minterest roadmap will be publicly updated to incorporate the multi-chain initiative. Additionally, after taking feedback from our community and partners into account we are adjusting the elements leading up to Public Launch to support the broader objectives for community growth and onboarding liquidity.
As communicated earlier, Public Launch will occur at the same time and are currently scheduled for Early 2024. We are actively working with key partners to set a firm date. Early access campaigns will roll out several weeks ahead in order to drive awareness and traction before the grand launch.
Why the campaign dates are being adjusted is related to a number of recent engagements with liquidity providers. Many have shifted to a monthly P&L framework necessitating meticulous capital allocation plans that prefer a liquid $MINTY token. Streamlining the campaigns will now align closely to Public Launch. This phased approach is strategic, intending to help Minterest to leverage $MINTY emissions to amplify rewards and onboard TVL rapidly.
$MINTY Fresh Community Campaign Teaser
We acknowledge that many in the Minterest community cannot contribute liquidity to Minterest due to the cost prohibitive nature of Ethereum so our team has been ideating solutions to reward proactive members in the run-up to the Public Launch.
November 2023, we’re launching an incentivised community campaign: $MINTY Fresh. This campaign will promote community growth, engagement, and education of Minterest. Exciting rewards, including a sizable pool of $MINTY and potential NFT drops, await. More details to come shortly!
Closing Off
We are proud to finally share the future multi-chain vision of Minterest. Be on the lookout for a number of related announcements over the next several weeks that provide greater context and clarity.
The Minterest team is operating with best laid plans for the success of the Minterest protocol and testing it methodically at every quarter. Some adjustments along the way are to be expected, but we will continue to progress forward with the intention of fulfilling Minterest’s mission to be the leading decentralised money market in Web3.
Roadmap phases, launch dates, liquidity targets, and reward structures are forward‑looking statements based on current plans. They may change through governance, market conditions, or technical considerations without notice. Outcomes are not guaranteed, and nothing herein constitutes financial, investment, legal, or tax advice.
Minterest’s Balanced and Sustainable Economic Model
Minterest is not just about accumulating assets; it’s about pursuing a balanced and sustainable economic model that prioritises long-term value and user benefits over misleading metrics and short-term gains.
It addresses overlooked challenges in the sector, such as insufficient incentives and the detrimental cycle of rotating capital. This is achieved through features like $MINTY utility tokens with a buyback mechanism, a dynamic interest rate model, and a unique approach to liquidations and solvency management.
To learn more about the Minterest ecosystem and how you can get involved, check out the official documentation, follow us on Twitter, and drop by the Discord channel for a chat with the $MINTY community!
Figures—including APYs, boost percentages, token amounts, and timelines—are illustrative examples based on current protocol parameters and may change through governance, audits, or market conditions without notice. Past performance is not indicative of future results. Participation in lending or borrowing involves smart‑contract and market‑price risk that can lead to loss of principal. Nothing herein constitutes financial, investment, legal, or tax advice. “Up‑to” figures denote maximum theoretical boosts; actual boosts depend on NFT tier, emission schedules, and market conditions.
Minterest’s architecture is designed to allow for a basket of token assets to be used collectively to back loan positions. This structure aids users in diversifying their exposure across a wider set of collaterals to mitigate risk. However, it concurrently introduces a nuanced layer of computational complexity.
In Minterest’s holistic approach, liquidity is aggregated as the user marks which supply positions can be used as collateral. From there Minterest calculates the maximum allowable loan available to the user.
For illustrative clarity, if Alice commits 10 USD each to DAI, USDT, and USDC markets and designates DAI and USDT for use as collateral, her total collateral valuation is 20 USD.
The maximum amount of her loan borrow position is defined by the “Utilisation Limits” of each market. Let’s say that USDT has an 80% limit and DAI a 70% limit. The maximum permissible loan available for Alice is computed as:
10 USD * 80% (USDT) + 10 USD * 70% (DAI) = 15 USD
This computation underscores that Alice maintains a stable position with a collateral value of 20 USD, provided her loan remains within the 0 to 15 USD bracket.
To come back full-circle with this example, assume Alice decides to borrow 7 USDT. The ratio between this and the value of her total collateral is her position’s Health Factor:
15 USD / 7 USD (USDT) = 2.14
Since Alice’s Health Factor is above 1, she is currently safe from a liquidation event.
Advancing Portfolio Risk Management
Beyond the Health Gauge, Minterest has been developing AI-imbued mathematical models for an advanced risk engine. This model draws from year-spanning data sets and evaluates real-time price fluctuations to estimate potential liquidation events. A key challenge highlighted during our focus group studies is that while predictive models do offer valuable insights, they don’t always translate to direct, actionable steps for liquidity providers.
To address this, Minterest’s team is developing a broader set of risk management tools to facilitate informed portfolio management decisions. These enhancements include risk alerts based on key metrics, allowing for automating select actions such as repayments, and superimposing a user’s loan position atop chart data of aggregated historical liquidation “heat zones” among other features which will be included in the 2024 roadmap.
Minterest’s primary aim is to equip users with accurate, timely data to support informed portfolio decisions. With tools like the Health Gauge and the forthcoming refined risk assessment tools, Minterest remains committed to meeting the practical needs of its user base.
All examples, health‑factor thresholds, and risk‑management features are illustrative and based on current protocol parameters. They may change via governance, audits, or market conditions without notice. Maintaining a Health Factor above 1 reduces liquidation risk but does not eliminate it; adverse market moves can still lead to loss of collateral. Nothing herein constitutes financial, investment, legal, or tax advice.
The Minterest token icon — the heart of the Minterest brand — got some TLC too. The team made subtle adjustments to the size of the leaf, colour combinations, and the shape of the coin icon to provide a bit of a visual lift.
Minterest’s new Token icon.
The new colour palette really aligned well with the recent rebranding of the Minterest token ticker symbol to MINTY as it symbolises more than just a token; it has a playful nature that brings to mind child-like enjoyment akin to “minties” — refreshing candies that leave a memorable taste in your mouth. We had some fun playing around with that concept, with more to come in the future.
Style of minties.
The Minty-er Minterest App
The Minterest application should be intuitive, user-friendly, and efficient — just like the dashboard of a car, where crucial information is clear at a glance, but where deeper insights are always at your fingertips. The visual refresh certainly improves readability and makes it easier to navigate the app since there are now fewer contrasting elements.
The updated Minterest dashboard.
Final Thoughts
As we share insights for refreshing the Minterest brand, we do reflect on the journey taken until this point and how the process led us down a captivating rabbit hole of creativity for several months.
Even after finalising the “winning” style, we fine-tuned it for even better resonance. Every nook and cranny of the Minterest app needed a new brand review — from the navigation bar to modals and even dashboard gauges. It’s a meticulous but necessary process to ensure a seamless user experience.
In the end we are really satisfied with the new look-and-feel of the product, and how it all came together piece-by-piece. Kudos to the entire product team and Minterest ambassadors for their incredible support in helping to refresh Minterest.
The updated design is now a foundation to build from and we have quite a bit more work coming down the pipeline as the Minterest app expands to incorporate more features moving towards its public launch. Stay tuned.
28, September 2023
Minterest is excited to announce its partnership with CUBE3.AI, a collaboration aimed at fortifying Minterest lending protocol and community against threats. This strategic partnership empowers Minterest to not only monitor and Inspect transactions in real-time, but once fully integrated it may be able to block malicious threats before they resolve on chain.
Through this integration, Minterest leverages cutting-edge machine learning algorithms that evaluate every blockchain transaction interaction with its contracts. In addition to monitoring and detecting exploits, fraud and scams, CUBE3’s Runtime Application Self Protection (RASP) “Protect” product can block malicious transactions. Once CUBE3 RASP product is integrated, Minterest aims to enhance transaction security, which could improve community sentiment and incentives for liquidity providers and borrowers.
Denis Romanovsky, CTO at Minterest, commented on the partnership:
“Minterest invests heavily in the security of its protocol. CUBE3.AI’s monitoring solution is a valuable addition to our security toolkit. It’s easy to set up, robust, and autonomous, providing real-time insights into potentially threatening transactions. We highly value the quality of services provided by CUBE3.AI and plan to deepen our partnership by integrating more of their security products.”
Stay tuned for updates and follow @Minterest and @cube3ai on Twitter for our upcoming Ask Me Anything (AMA) session.
For more information about CUBE3.AI, please visit their website to sign up for Detect and Manage for free or request a demo.
CUBE3.AI is the first-ever web3 real-time transaction security platform. Leveraging advanced machine learning, CUBE3 detects and blocks threats before they can be executed, guarding against cyber exploits, wallet hacks, fraud, vulnerabilities, and compliance risks.
Forward‑looking statements (e.g., expected security improvements) are goals based on current plans and may change through technical developments or market conditions without notice. Actual results are not guaranteed, and nothing herein constitutes financial, investment, legal, or tax advice.
Our commitment to security is evident in the six successful code audits we’ve undergone so far, enhancing our platform’s robustness. These audits, conducted in 2022 and early 2023, reflect our dedication to maintaining a high standard of security and aiming to bolster user confidence in our platform’s safety.
Fireside Chat with Zokyo
A highlight of our Security Week was undoubtedly engaging Fireside Chat held on X Spaces with a distinguished security auditing company ZOKYO.
The Fireside Chat began by stressing the critical importance of cybersecurity in DeFi by highlighting that access control issues remain a common source of losses in this space, often caused by unauthorised wallet takeovers.
The conversation shifted to the auditing process, with Zokyo CTO Andrei Stefan, providing a glimpse into its intricacies. He emphasised that each audit is truly unique, influenced by factors like project complexity, team size, and auditing methodology. Denis Romanovsky from Minterest engineering chimed in, underscoring the significance of comprehensive documentation and testing to streamline the audit process.
The dialogue also touched on the challenges of auditing, including the delicate balance of knowing when to conclude the search for vulnerabilities. Additionally, it was noted that audits can catalyse improvements within teams, fostering better practices and workflows long term. In terms of safeguarding digital assets on protocols, both Andrei and Denis reiterated the importance of securing private keys, enabling two-factor authentication, exercising caution with phishing attempts, and remaining vigilant against social engineering attacks.
Furthermore, they recommended that every stakeholder or interested individual must read audit reports for projects and verify the credibility of auditing companies even if the Whitepaper seems too daunting. As Andrei said,
“At Zokyo, we are trying to audit projects first for the community, for the retail user, second for the investors and third for the technical knowledge. The community and the investors, 99% of them, are not technical people and we are trying to be as user friendly as possible without using too many technical terms and just explain as simply as possible.”
Overall, the discussion highlighted the important role of code audits in upholding DeFi protocols security and the essential nature of individual security measures.
Audits, monitoring tools, and other security measures aim to reduce risk but cannot eliminate it entirely. No security control guarantees complete protection against exploits or loss. Nothing herein constitutes financial, investment, legal, or tax advice.
The first security audit was conducted by Trail of Bits, a highly respected firm trusted by industry leaders like Compound, Aave, and MakerDAO. The audit scrutinised all protocol contracts and flagged 17 issues — two of which were critical, such as MEV attacks affecting liquidation logic and the risk of lost user rewards.
During the remediation phase, we addressed all 17 issues and optimised gas costs. We even re-engineered the liquidation system to be resistant to MEV attacks. This audit served not just as a problem-solving endeavour, but also as a catalyst for elevating our engineering practices and workflows, resulting in a marked enhancement in code quality for future audits.
The second audit was with Hacken which covers prominent projects like Binance and 1Inch. By this time, Minterest’s codebase had expanded since the first audit, yet Hacken scored us a perfect 10 out of 10. The issues identified had been reduced to 10, all but one of which were resolved during the remediation phase, with the final issue fixed before the next audit.
PeckShield carried out the third audit. PeckShield is known for their work on Polygon, Avalanche, among others in their extensive portfolio. By this time, the scope included all contracts, including those which were unchanged from the previous audit. Their overall assessment of the code maturity level had improved, described as “well-designed and engineered.” They listed only 7 minor issues in their final report, and all of them were promptly addressed during the remediation stage.
In the most recent audit phase, Zokyo conducted one full audit and two partial reviews, awarding Minterest a high safety score of 96 out of 100. The first review scrutinised the entire code base, setting the stage for Minterest’s secure deployment on the Ethereum mainnet. The subsequent audits focused on last-minute updates and patches.
The Zokyo team played a key role in the protocol’s mainnet launch, overseeing last-minute patches and confirming their safety. While most findings were recommendations for future enhancements, a few potential exploits were identified but mitigated using business flows and tooling instead of needing to alter the core code. The audits indicated the robustness of the protocol, providing an added layer of confidence for Minterest users.
Safety and Security, a Priority
Minterest has been scrutinised by some of the industry’s leading security engineering teams, providing invaluable insights that have elevated not just the Minterest codebase but also the team’s engineering culture. Regular audits will remain a cornerstone of Minterest’s development pipeline, helping to reinforce the security of assets for all users.
We hope this comprehensive article provides you with a deeper understanding of the intense time, effort, and resources used to develop the Minterest protocol, aiming to maintain a high bar for security.
Audit findings and security ratings reflect code status at the time of review and do not guarantee future protection; new vulnerabilities may emerge. Nothing herein constitutes financial, investment, legal, or tax advice.
All Minterest token holders continue to operate under the same terms as before. Cliff and unlock periods for early supporters remain unchanged, and rewards continue to accrue in the same manner for liquidity providers.
Vestings for early supporters commenced in February 2023 and are expected to be honoured as outlined in the Minterest Whitepaper and the table below.
Earlier this year, the Minterest total token supply was reduced from 100 million to 65.9 million MINTY tokens (formerly MINTY) from the burning of a third of the supply. This process streamlined tokenomics by shortening the overall emissions schedule to 5 years and making the numbers simpler to understand over that period. This decision was intended to benefit all Minterest stakeholders.
The percentage share of the overall supply is more valuable to the stakeholders than the number of tokens they possess. Early supporters, who previously held 20% of the total supply, now have a 30% share — a 50% uplift in overall token value allocation.
Beyond Numbers, a Greater Impact
This shift transcends mere numbers; it could amplify community impact in future governance decisions. For liquidity providers, this may result in an increased share of Minterest’s buyback rewards too.
Share of Token Supply Ownership
Embracing Stability and Long-Term Vision
Minterest tokenomics 2.0 introduced back in January 2023 was a carefully calculated move to benefit all token holders, magnifying the share and influence of each participant in the Minterest ecosystem. This remains a part of our ongoing commitment to instill stability and to chart a long-term vision of success with all stakeholders.
For more information on the path towards Public Launch, please read about the Minterest Roadmap.
Token supply changes, vesting schedules, reward accruals, and numeric uplifts are based on current protocol parameters and may change through governance, audits, or market conditions without notice. Figures are illustrative targets; results are not guaranteed, and nothing herein constitutes financial, investment, legal, or tax advice. † “Up‑to” and “about” figures denote approximate, theoretical values; actual percentages depend on circulating supply and future token emissions.
29, August 2023
The mission of the Minterest protocol is to be the among leading decentralised money market in Web3. Minterest’s unique model aligns incentives through innovations, such as the Liquidation Engine*, that generate greater fees and redistribute them all back to users of the protocol.
Minterest bootstraps the onboarding of liquidity by distributing its governance token, MINTY, to users of the protocol in addition to the underlying market yield. Like many DeFi projects, Minterest grapples with the challenge of aligning incentives to drive liquidity for the long-term success of the protocol. This blog post aims to shed light on how Minterest’s Distribution Gateway system provides a solution.
What is the Distribution Gateway?
The Distribution Gateway is a sophisticated contract, meticulously designed to manage the substantial distribution of MINTY during the early stages of the protocol’s life without compromising the overall health of the protocol.
This system keeps track of rewards accrued by each user and aims to ensure their even release over a 12-month span. Consequently, our early supporters can benefit meaningfully, while the influence on the circulating supply is adeptly controlled, granting the protocol the vital time it needs to achieve widespread user adoption and broader token distribution.
The Problem of Lazy Data Storing
Diving deeper, it’s crucial to address a technical nuance inherent to all blockchains – the lazy storage of data.
To minimise gas costs, when rewards are to be distributed to multiple users, DeFi projects (including Minterest) deploy indexes – ever-increasing variables that aggregate rewards. Rather than updating each user’s balances, the distributor modifies only one value – the index. Subsequently, all reward recipients bear the gas costs to deduce their respective reward share.
This method is efficient concerning gas consumption. However, the index doesn’t record the specific dates of reward distribution. As highlighted, the Distribution Gateway requires these dates to suitably release the MINTY tokens over a year. So, how do we navigate this challenge?
How the Distribution Gateway Works
Our answer to the lazy data storage dilemma is a strategic compromise in the precision of token release to the market, yet still within the bounds acceptable by our business model. The Distribution Gateway does not monitor every single token. Instead, it comprises 12 slots, each representing earnings for a month. Should a user remain active, their earnings data for the past 30 days is housed in the pertinent slot. When withdrawal is set into motion, the system computes the amount that can be withdrawn using the formula:
Here, slotBalance12 refers to the earnings of the most recent month.
The internal logic within the contract approximates the number of tokens from each slot ready for release. This method doesn’t trace the exact status of individual tokens but monitors the monthly earnings for a user’s yearly activity on the protocol.
For clarity, consider the following graphical representation that shows the total and available withdrawal balances for a user who earns a consistent MINTY amount each month and actively engages with the protocol:
Earned Balance represents all MINTY earned, both withdrawable and non-withdrawable.
Withdrawable Balance indicates the amount of MINTY that users can withdraw to their wallets.
What are Active and Inactive Users?
An “active user” is one who engages with markets or their MINTY balance at least once within 30 days. This means that a user who does a supply, borrow, repay or withdraw action, as well as stakes or unstakes MINTY in the governance process, triggers an update of the Distribution Gateway.
The Distribution Gateway system is designed to work reliably for active users. But how about users who deposit assets and then await their rewards, not making any chain transactions for several months?
The Distribution Gateway is designed with provisions for this scenario as well. If such a user decides to withdraw MINTY after months of inactivity, the system gauges the duration (or number of slots) of their absence. All collected rewards are aggregated, and an average value per slot is calculated. This value is then incorporated into the previously mentioned formula to determine the withdrawable sum.
However, a minor hiccup arises. If a user remains inactive beyond 30 days, the UI might display a decline in the withdrawable sum. This usually occurs post the slot transition, roughly every 30 days. This apparent discrepancy arises as the averaging logic employed at the contract level is mirrored on the UI.
For a clearer picture, consider this example:
On the 30th day of slot 1, a user accrues 10 tokens, enabling them to withdraw 1/12 of this total = 0.833 MINTY.
By the first day of slot 2, the user’s total earnings amount to 12 tokens. However, due to their inactivity, the averaging logic is activated. The newly averaged earnings amount to 6 tokens per slot (i.e. 12 tokens earned across 2 months = 6 tokens per month), with the total withdrawable sum being approximately 1/12 of the 6 tokens = 0.5 tokens.
This dip might seem concerning initially, but the system rapidly recalibrates. It typically takes about 6 to 9 days to revert to the withdrawal amount observed at the end of slot 1. As a consequence, inactive users might observe the following pattern on the UI:
This is the so-called “saw pattern.” A similar chart will feature on the Minterest user dashboard to offer users a clearer forecast of impending rewards.
The Distribution Gateway has been carefully designed to manage the distribution of MINTY tokens in a manner intended to be fair to early supporters and supportive to the long-term health of the Minterest protocol. We understand the complexities and concerns users might have regarding reward distribution, and this mechanism seeks to provide a balanced approach. We hope this deep dive has shed light on the intricacies and design sensibilities of the Distribution Gateway.
*Note that Minterest’s Autoliquidation Engine has been renamed to Solvency Engine.
Statements about aims, reliability, fairness, and timelines describe intended design goals and are not guarantees. Actual behaviour depends on market conditions, user activity, governance updates, and ongoing audits. Figures are illustrative only. Approximate timeframe based on current parameters; actual timing may vary.
24, August 2023
Our aim was clear: nail down the most fitting ticker symbol for Minterest’s token. Criteria? It had to resonate with Minterest, give the project extra value, be catchy, enjoy strong community support, and stand out in the crowd.
From days filled with suggestions to passionate community campaigns and an edge-of-your-seat voting round, we’re thrilled to introduce: MINTY – the new face of Minterest’s token!
Here is a rewind of this historic adventure.
The community and Minterest team submitted a plethora of ticker options. Suggestions spanned the gamut, from succinct acronyms like MNTX and MTRST to catchy ideas such as iLEND and FRESH.
Hearteningly, every finalist came directly from our community’s creative minds.
Meet the Top 3 Contenders
MINTY: Suggested by Telegram’s Bee AhhBee, MINTY was also on the radar of our in-house team. It’s a fitting name that smoothly rolls off the tongue. And judging by the enthusiasm, our marketing team is already buzzing about the mascot and merch potentials!
MIFI: Joe from Telegram threw this witty suggestion into the ring. Much like WiFi’s omnipresence, Minterest Finance aims to be an inseparable part of everyone’s digital existence. Joe‘s idea captured our goal to offer a constant financial presence that is as reliable as it is innovative.
MINTX: Hats off to Discord’s BuyNoEvil for this gem. With a subtle tweak to his original idea, MINTX is a testament to Minterest’s roots while hinting at a grander vision for a multi-chain universe.
The showdown took the spotlight on our Minterest X Twitter profile. The voting frenzy lasted a solid 48 hours with MINTX and MINTY competing for the top till the final whistle.
We loved so many community suggestions, but to cut down to the top contenders, a few considerations took centre stage:
Avoid the ‘MNT’ Trap: Kudos to Vectorize and sampeik for highlighting the potential pitfalls of ‘MNT’— it might muddy the waters with other projects out there.
Distinctiveness: Some suggestions were, unfortunately, lookalikes of existing projects.
Easy Recollection:Brands need to be memorable. Tickers such as MTRST, MINTR, and others had appeal, but when spelled or spoken, they didn’t quite hit the expectations.
Diving Into the MINTY Fresh Era!
MINTY is a calculated pick.
It’s catchy, easy-to-share, and embodies the enthusiasm of a dynamic community. It’s the kind of name people align with and speak of with pride.
Here’s what a couple of our esteemed Minterest’s advisors chimed in with:
Tough choice. I assume MINT was taken already. Personally I like MiFi best, then MintX because they are both edgy-cool, but I don’t think they are the best choice, as easy memorability for someone just learning of the project is paramount, as long as it’s still professional. So I…
With MINTY on board, we’re in for a creative whirlwind. Picture sticker packs (‘Mintojis’, anyone?), desirable merchandise, or even real-life ‘Minty Minties’ candies? This minty revival adds a ton of substance to the Minterest narrative, a tale we’re crafting hand-in-hand with our supporters.
A big thanks to every participant for turning this page in Minterest’s history book!
As Minterest ventures into a new chapter with an updated roadmap, a brand refresh is in the air. More than a mere symbol, it signifies a fresh beginning for the Minterest project and our community. And what captures the essence of a Web3 project better than its Ticker Symbol?
Ticker symbols are more than labels; they become the brand’s signature, appearing across wallets, token tracker sites, lending protocols, bridges, DEX, centralised exchanges, and more. But a ticker’s true spirit resides in the community who passionately embrace it through online discourse and in real-life conversations, allowing it to effortlessly spread fast and far.
With Minterest, we’re on the hunt for a new Ticker Symbol that resonates with you, our community, forging a strong identity that you are proud of and embracing our shared identity across Web3. Your participation matters so let’s make history and create something iconic together!
How do you participate?
August 10-14: Suggest a Ticker Symbol in the community channels on Telegram or Discord.
August 15: A final selection, including community favourites will be put up for vote on X.
August 17: A winner is selected, and you become part of Minterest history!
Ticker Symbol requirements
3 to 5 letters: Think along the lines of BTC, AAVE, MATIC.
Unique: Not actively in use by another token on top-tier DEXs or CEXs. CoinGecko and CMC are great research tools.
Relevant: No MNT or any unrelated symbols.
The Fine Print
Voice in the Process: The Minterest team will carefully consider each entry. We want to find a ticker that fits the brand and our community, and that might mean we’ll need to set aside some suggestions.
Final Say: We respect and value your input, but the final decision on accepting the ticker symbol will ultimately lie with the Minterest team.
Play Fair: We encourage creativity, but make sure your suggestions comply with applicable laws and don’t infringe on others’ rights. We’re all in this together, building something special, and that means playing by the rules.
This is an opportunity to shape Minterest’s future. Your voice matters to us, and we look forward to hearing your creative ideas.
As a preface, the Minterest protocol has been operating without issue in a closed beta format (i.e., Private Launch) since early 2023. All subsequent development will build upon the underlying smart contracts, so that Minterest LP’s do not need to change their behaviour in any way.
1. Roadmap
* Please note that while the Minterest team is fully committed to this roadmap, timelines may be subject to change.
1.1 Public Access: Q1 2024
Public Access opens the protocol to anyone with a supported Web3 wallet on Ethereum and Mantle Network.
Included with Public Access:
High rewards: Planned increase in emissions and staking rewards.
NFT Boost Starts: Rewards on emissions increase up to 50% via Minterest NFT.
Solvency engine launches: Borrowing allowances are expected to increase to match industry LTV ratios of 70%-90%. Learn more about why the Minterest solvency engine matters here.
Governance token: Non-transferable during this phase.
1.2 Phase 1: Public Launch: Q2 2024
Public Launch builds on Public Access and unlocks vested governance tokens, allowing them to be transferable.
Included with Public Launch:
Governance token: Transferable.
Listing: Key integrations and listings.
1.3 Phase 2: Multi-Chain Expansion: Q2-Q4 2024
Minterest’s movement towards true cross-chain lending includes new chain deployments of Minterest across additional L1s and L2s in a controlled manner.
Included with Multi-Chain Expansion:
Updated Minterest App UI to manage multi-chain access
Common token markets such as certain stable coins (i.e. USDC) and/or volatiles (i.e. ETH) alongside unique token markets specific to the chain
Minterest NFT deployments
1.4 Phase 3: Cross-Chain Lending: Q1 2025
Minterest’s cross-chain architecture is planned to go live, allowing users to lend on one chain and borrow on another. Minterest’s solvency engine expands to support cross-chain liquidations.
Once the dates are finalised, further information will be provided.
Marching Forward Together
There is a lot to digest with the roadmap. And yet, there is still so much more to share, detailing out each phase, new and updated product features, community activities, and exciting campaigns planned – all coming to the blog in the weeks ahead.
Join us in the Minterest community channels on Telegram and Discord to participate in the conversation as we work together to shape the future of decentralised finance.
The Minterest team has addressed community questions related to the roadmap on the Minterest Gitbook under section Community Asks.
Edit: The Minterest team has addressed community questions related to the roadmap on the Minterest Gitbook under section Community Asks.
Edit: Nov 7, 2023 – Roadmap has been updated based on the latest announcements which positions Private Access and Public Access right ahead of Public Launch in Q1 2024 and includes the broader multi-chain strategy roll-out.
Edit: Feb 25, 2024 – Roadmap has been updated removing Private Access as per the latest announcements and developments.
Edit: April 2, 2024 – Roadmap updates to public launch timeline and additional deliverables through Q1 2025.
Road-map phases, timelines, reward levels, borrowing parameters, and all token-related features are subject to on-chain governance, technical audits, and market conditions; they may be modified, delayed, or suspended without notice. Figures and projections are illustrative only, results are not guaranteed, and nothing herein constitutes financial or investment advice.
All NFT parameters, emission-boost periods, and token allocations are subject to on-chain governance and market conditions, they may be modified, delayed, or suspended without notice. Names and images of historical blockchain figures are illustrative homages and imply no affiliation or endorsement. Figures are illustrative only. Results are not guaranteed and nothing herein constitutes financial or investment advice.
Our dedicated core team, the original builders of Minterest, are hard at work. We’re focusing on key features that will attract early adopters and building upon Minterest’s solid architecture. The engineering and product teams are working in tandem, plotting the roadmap ahead and setting up the technical infrastructure to support these plans.
Brand & Identity
The Minterest brand remains active, and you’ll soon see our online and social properties coming back to life. As we enter this new era, we’re also subtly refreshing our visual identity, symbolising the beginning of a new stage in Minterest’s journey.
Technology Foundation
Minterest audited smart contracts deployed on the Ethereum mainnet form the foundation we will build upon. All six security audit reports by reputable firms including Trail of Bits, Peckshield, Hacken, and Zokyo are readily accessible on Minterest’s Gitbook, underscoring the breadth and depth of Minterest’s technology and aiming to support secure and smooth lending and borrowing operations.
Minterest Governance Token
The Minterest token contract remains unchanged, and currently rewards early supporters and liquidity providers. We’re planning a discussion with the community about the token’s future branding. Stay tuned!
Stable Tokenomics
Our tokenomics currently remain unchanged, honouring all vesting schedules established earlier this year. This includes the 50% proportional uplift provided to all early supporters. You can check out the details of the tokenomics here.
Empowering NFTs
Minterest NFTs are intended to continue serving their original purpose, providing key card access to the protocol and acting as emissions boost for liquidity providers.
And, if you’re an existing NFT holder, watch this space for some exciting news in a future post.
This is just the start. In the next post we’ll delve into the broader roadmap for 2023 and shine a spotlight on key product updates and plans towards public launch.
All token-, emission-, and NFT-related parameters are subject to on-chain governance and market conditions. They may be modified, delayed, or suspended without notice. Nothing herein constitutes financial or investment advice.
A “Community Asks” section has been set up on the Minterest Gitbook to address your questions. Our next update will share a roadmap for the remainder of 2023, offering insight into your key queries on topics including product highlights, Minterest NFTs, token vesting, supported token markets, DAO, and more.
We are also reopening the Minterest Telegram and Discord channels shortly and look forward to resuming regular communication with the Minterest community.
Throughout this difficult period, we have appreciated the messages of support. There is an incredible opportunity in front of us and we are excited to share it together.
Best regards,
The Minterest Team
Important Clarifications
Corporate structure. In 2023 the protocol’s intellectual-property (codebase, brand assets, and supporting technology) was acquired via a secured-creditor sale following repossession by a service-provider creditor. No historical liabilities or contractual obligations of Minterest Labs OÜ transferred as part of this process.
Token allocations. MINTY tokens have been minted and allocated in line with the published tokenomics, however, all tokens remain fully locked, non-transferable, and non-tradable. Unlocking and any future liquidity are voluntary and conditional on a compliant public launch, which is still subject to product-market fit, adequate liquidity, and regulatory approvals, and therefore not guaranteed.
Forward-looking risk factors. Development timelines, funding milestones, and launch plans may change based on market or regulatory conditions. Nothing in this post constitutes an offer of securities or a promise of future value.
Decentralized Finance (DeFi) lending protocols are marketplaces which allow its users to lend, borrow, and trade cryptocurrencies in a decentralized and trustless way. They do so by facilitating liquidity pools, which are also referred to as token markets. These liquidity pools allow users to earn yield on the crypto assets they supply by enabling borrowers to borrow them.
Liquidity Pools on DeFi Lending Protocols
A liquidity pool is a smart contract on a blockchain-based platform such as Ethereum that allows users to supply their cryptocurrency into a pool of the same asset. Assets are pooled with other suppliers, hence the name pool. The protocol functions then allow these assets to be lent to borrowers who borrow the asset from the pool.
Liquidity pools providing borrowers with access to assets in this way is referred to as the provision of liquidity. When a borrower wants to borrow, they use their crypto assets as collateral, which may be in another pool, and borrow from the liquidity pool. In doing so the borrower pays interest, which is distributed to the liquidity providers in the pool based on their proportional share of the pool.
How Liquidity Pools Work
Users deposit crypto assets into a liquidity pool, with each pool designated by a single asset. The lending protocol then allows borrowers to borrow a predetermined percentage of the total amount in each pool.
In return, users gain a share of the interest the protocol collects from borrowing in the pool. The interest rate is determined by the supply and demand dynamics for each pool. If borrowing increases in proportion to the amount supplied in a pool, the interest rate for borrowing increases and conversely falls if the opposite is so.
Benefits of Liquidity Pools
Liquidity pools offer several benefits to both liquidity providers and borrowers. Interest can be thought of as the price of using an asset over time. For liquidity providers, lending protocols enable this process, with yield being earned on their crypto assets with the flexibility of withdrawing their assets at any time from the pool.
For borrowers, liquidity pools offer an immediate, trustless means of accessing liquidity without having to rely on traditional financial institutions like banks.
Lending protocols also issue users with additional rewards in the form of their native token for using the protocol, known as emissions. The value of emissions act as a form of interest bonus for suppliers and as a subsidy for borrowers, and in aggregate with interest earned may cause the protocol pools to deliver highly competitive outcomes.
Risks of Liquidity Pools
While liquidity pools offer several benefits, they also come with some risks. One of the main risks is liquidations. Most crypto assets can fluctuate dramatically in price. When a borrowing or lending position sees a rapid shift in the price of one of the assets, there is a risk of the borrower’s position becoming insolvent.
DeFi lending protocols almost exclusively rely on a collateralised lending system, meaning any borrow position requires the borrower to supply a greater amount of collateral to the protocol’s pools. When the value of that collateral decreases dramatically, or the value of the borrowed asset increases, the loan position can become insolvent. Insolvent loans are liable to liquidation, where collateral is sold off to repay the pool of the borrowed asset.
Another risk associated with liquidity pools is smart contract risk, which occurs when there are vulnerabilities in the smart contract code. This can lead to hacks or exploits that result in loss of funds for liquidity providers or borrowers. It is important to do thorough research and due diligence before providing liquidity to a liquidity pool on a DeFi lending protocol.
DeFi Lending Protocols and Yield Farming
Yield farming involves leveraging the value of the protocol’s emissions. The form and nature of emissions in lending protocols are specific to each one but commonly emissions are issued to both suppliers and borrowers of token assets in the liquidity pools. If the value of emissions earned subsidizes the cost of borrowing significantly enough, borrowers may participate solely to exploit such an occurrence, and this type of user behavior is known as yield farming.
A number of established yield farming strategies exist, including single-asset borrowing where users are seeking to exploit the value of emission rewards as well as strategies leveraging different types of crypto assets, such as stablecoins and non-stablecoins.
Conclusion
As recently witnessed in traditional finance with volatility in the banking sector, there are risks associated with financial services and lending protocols are no exception. They do however deliver significant upsides over traditional finance in the areas of flexibility and immediate and trustless access to liquidity, plus innovative and at times highly competitive yields.
The popularity of lending protocols has made them foundational to the overall crypto economy. For any economy to flourish it requires effectively functioning debts markets, which is what lending protocols have become. As the overall crypto sector grows in scale lending protocols will be key drivers and beneficiaries in enabling that future.
The single biggest challenge facing the crypto space isn’t a lack of technological innovation or uncertainty over regulation; instead, it’s the continuing struggle to grow crypto adoption among largely non-native crypto users.
DeFi, short for decentralized finance, refers to a system that allows individuals to conduct financial transactions without the need for intermediaries like banks or brokers. DeFi has gained traction in recent years, with billions of dollars now locked into various DeFi platforms, indicating a shift towards a more decentralized financial system.
To convince traditional finance customers to shift to DeFi, Minterest and other lending platforms need to demonstrate concrete value for potential users.
DeFi currently holds at least three key advantages over traditional finance.
Accessibility
Photo by Viktor Forgacs on Unsplash
DeFi platforms offer increased accessibility to financial services by enabling individuals to participate in the financial ecosystem without requiring permission from intermediaries like banks or brokers.
DeFi increases financial inclusion by providing access to basic financial services to those who are underbanked or unbanked. All of the core elements of TradFi exist in DeFi. Decentralized exchanges, for example, provide users with the ability to trade cryptocurrencies without the need for a centralized exchange. Lending protocols like Minterest allow instant access for collateralised loans, and staking tokens to earn interest generally returns far higher APY in DeFi than in a traditional bank savings account.
Crucially, each of those elements is accessible to anyone with internet access, without the need for financial records, credit checks, or extensive hassle. While self-custody of assets can still be inconvenient for early adopters, with the speed that blockchain applications develop ease of use should quickly overcome this.
DeFi brings wealth-building tools to everyone.
Transparency
Photo by Nathan Watson on Unsplash
Blockchain provides DeFi platforms with a far higher degree of transparency than TradFi financial institutions. Publicly verifiable transactions on the blockchain can be inspected by anyone as a distributed public ledger.
That transparency not only has profound implications for personal business (ensuring that assets sent from one wallet to another actually arrived), but also impacts the institutions themselves. Users can perform greater due diligence on DeFi protocols than on real-world banks, where balances are rarely (if ever) publicly disclosed.
Transparency also increases trust. Smart contracts, which execute automatically based on predefined rules and conditions, eliminate the need for intermediaries, while being externally verifiable themselves. That leads naturally to the third DeFi advantage:
Security
Photo by Shubham Dhage on Unsplash
Security and trust go hand-in-hand. While there have been high-profile breaches in the DeFi sector, smart contract audits and bug bounties help identify and fix vulnerabilities in the code and ensure secure execution of transactions.
Individual protocols, such as Minterest, gain trust by following established best practices and by proving reliability over time. Deploying reliable architecture from skilled developers and then inviting third-party verification via audits and bug bounties remains the bedrock of DeFi security.
Crypto Adoption and the DeFi Advantage
Photo by Rohit Choudhari on Unsplash
Accessible, transparent, and secure access to financial services lies at the heart of DeFi. And unlike TradFi, the DeFi sector lacks the gatekeepers and countless third parties that hinder access.
That being said, DeFi adoption remains low when compared to TradFi. Regulation, volatility, and cybersecurity risks can discourage new users. All three are legitimate areas of concern, though it is worth noting that TradFi regularly struggles in the same areas.
Regardless, DeFi holds the potential to become a truly mainstream financial system in the near future. DeFi continues to evolve, and Minterest forms an important part of that growth.
The final stage of Private Launch is live. That means money markets are growing, TVL is climbing – and the dev team is busy fixing bugs and adding new features ahead of public launch.
Here are some of the key updates in the roughly three weeks since the final stage went live.
Integrated Gas Price Prediction 28.02.2023
Activated the gas price prediction feature to set the correct gas for swap/transfer transactions and to prevent transactions from hanging.
Codebase Optimizations 02.03.2023
Integrated Manual Swap Manager into all inquisition services. Adjusted the codebases for increased efficiency.
User Interface Add-ons 07.03.2023
Implemented several updates to the user interface. Added a button that enables easy access to available NFTs on OpenSea. Created a dedicated block to display total rewards, and included total supply/borrow values in the table headers.
Bug Fixing Spree 09.03.2023
Fixed several bugs related to collateral and net APY display. Added helpful tooltips for staking and withdrawing. Temporarily hid some graphs until they can be fixed to ensure optimal user experience.
Risk Endpoint Testing 16.03.2023
Introduced an API endpoint functionality that calculates the probability of default for a given portfolio using collateral and borrowing data. The tool enables monitoring the overall health of a selected portfolio by assessing the risk over the next three days.
Zokyo recently completed a third audit iteration of the Minterest smart contract system.
Thefirst Zokyo audit reviewed the entire body of Minterest smart contracts. The second audititeration focused on the review of new implementations added by the Minterest team. This third audit examined a number of smaller, more minor changes to the code.
These changes centred around the Buyback, Vesting, and Liquidation operations. Per Zokyo’s findings:
The Zokyo Security team hasn’t detected any issues in the updated code. There were two informational issues described in the third iteration: one of them was about the absence of validation, and the other one was connected to logic clarification in Buyback.sol. The Minterest team has verified both of the issues. Since most of the changes were added to already existing functions, the Zokyo Security team has updated their set of unit tests prepared during previous audit iterations to validate new logic. Additional test-cases were prepared for the vesting flow.
This audit – the sixth audit of Minterest smart contracts to date – continues to demonstrate the underlying reliability of the Minterest protocol and the team’s commitment to due diligence.
The results of the audit were positive. Zokyo awarded Minterest a “Pass” with a score of 96 out of 100. A few smaller issues were highlighted to the Minterest team, with appropriate actions taken.
In the light of ongoing high-profile exploits, Minterest’s safety and security will continue to play a determining role in the protocol’s long-term success. To that end, Minterest has already commissioned a further Zokyo audit, and will continue to regularly audit the protocol.
Updates to the Minterest protocol after the start of Private Launch in November 2022 necessitated a fifth security audit to the protocol. That audit was undertaken by the leading security auditing firm Zokyo, ranked #1 Smart Contract Auditing firm by Forbes in 2018.
In keeping with Minterest’s standards of transparency and quality, the team is pleased to announce that the protocol passed the most recent Zokyo audit, the second audit from that firm and the fifth audit of the protocol overall. You can find previous audit reports here and here.
Goals of Fifth Audit
The most recent audit prior to this one was also undertaken by Zokyo, a detailed summary of which can be found here. Zokyo “audited all changes since the last audit iteration,” to ensure that any of the changes were in keeping with the rest of the protocol.
Key Takeaways
Minterest passed this fifth audit with a total score of 96/100, indicating that no major problems were found with any changes to the underlying smart contracts.
98% of the code was testable, well above the industry standard of 95%.
Final Thoughts
Submitting to a fifth audit demonstrated Minterest’s continuing commitment to the highest security standards in crypto.
Further details on the audit can be found in the Zokyo Executive Summary below:
With five audits completed and a sixth underway, and with the final stage of Private Launch now live, Minterest is well-positioned to proceed to Public Launch.
Minterest Private Launch entered its final stage last Tuesday, Feb 28, 2023. TGE happened, NFTs were minted, and the protocol’s emission rewards started.
Here’s a snapshot of the week’s milestones and the roadmap for what’s next.
NFT Minted and Distributed
Early participants noticed NFTs started appearing in their wallets on Monday, Feb. 27 as NFTs were minted and distributed and since access to Minterest from now till its public launch requires an NFT.
The first Minterest NFTsale happened shortly after for 1 ETH on the Monday on OpenSea.
Protocol Goes Live!
Minterest is now live!
50,000 hours in the making, we’re incredibly excited to announce that the Minterest protocol is fully live in Private Launch.
Last Tuesday afternoon, February 28, 2023, the Minterest protocol officially entered the last phase of its Private Launch. All core protocol functions went live including emission rewards,, with TVL pouring in right away.
One day later, on March 1, Minterest attracted > $1,000,000 TVL. Users benefited greatly from the smaller pool of participants, with some markets reporting APYs over 3,000%!
Launch AMA Gains Hundreds of Listeners on Twitter Spaces
The Minterest team wrapped up the week with a truly epic Twitter Spaces, a freewheeling conversation with the management team of JR, Kyn, Veiko, Kevin, Martti and Denis. The event gained hundreds of listeners over the course of an hour, and formed the capstone to a phenomenal first week.
The end of the week saw a flurry of activity on OpenSea, with a growing number of NFT sales and a floor price currently sitting around 0.23 ETH.
The number of protocol users grew 60% over the week.
TVL exceeded $4,500,000 by the end of the first week, marking a highly significant achievement in such a short time
What’s Next?
All eyes start to look towards April as a potential date for the full public launch.
Next developments on the protocol include enabling auto-liquidations and the long-anticipated risk index – the first of its kind.
Minterest Launch FAQs
Excited to start using the protocol? Head over to OpenSea to grab an NFT for access.
Not sure where to start? Access the app here. You can also check out the Minterest FAQ on Gitbook, where you’ll find everything you need to know about:
Accessing the protocol
Supplying liquidity
Borrowing assets
Minterest NFTs
Staking
Start with the FAQ, then head to the blog to learn more about the only DeFi protocol with sustainable real yield.
“Minteresting” Fun Facts
To whet your appetite, some Minterest fun facts from the first week:
TVL and Markets:
First week TVL: $4.5 million+
2 markets $1M+ supply (wBTC & USDC)
Whales swimming to Minterest:
Top 4 users provide greater than 50% supply,
Top 10 users provide greater than 90% supply
Top 3 borrowers account for roughly 50% total borrow
Top 10 borrowers account for 90% total borrow
More than 60% of all users borrow
More than 80% of available supply borrowed
Current 20% borrow cap set to increase soon
NFT Sales
34 total sales
1 sale at 1.5 ETH – Level 5 “Sergey Nazarov”
2 sales at 1 ETH – Level 7 “Winklevoss Twins” & Level 7 “Roger Ver”
No one survived the crypto downturn unscathed. Noted CEXs failed, major NFT projects lost most of their value, and DeFi protocols collapsed.
Compound and Aave, in contrast, remain strong.
Source – https://defillama.com/
The two DeFi lending protocols have carved out a position as industry leaders, with $2.8 billion and $7 billion in TVL respectively. Together, they stand at the head of a DeFi sector poised for a potential rebound.
If Compound and Aave represent the best of DeFi 1.0, what comes next? What are they doing right? And what will DeFi 2.0 do better?
In an ongoing series on the current state of DeFi (see part 1 here), this article describes how leading DeFi protocols are currently structured, and how Minterest and DeFi 2.0 aim to improve.
Compound and Aave both rely on similar principles. Users of each protocol fall into two general categories: liquidity users (borrowers) and liquidity providers (lenders). Aave and Compound create asset pools for various crypto tokens, and users add to and withdraw from those pools.
The premise is straightforward. All borrowing is collateralised, meaning no user can take out more than they have put in. The actual practice gets a bit more complicated; since users rarely lend one token and borrow the same token, protocols rely on token pairs, with asset pools for each pair.
DeFi 1.0 Value Creation
Why use a DeFi lending protocol?
Access and inclusivity.
DeFi lending, as opposed to lending in traditional finance, reduces the friction of participation to anyone with a wallet, and provides absolute transparency to the inner workings of the protocol.
Permissionless – Anyone can participate. DeFi users don’t need to pass extensive financial scrutiny to participate. With sufficient collateral, whether it is Minterest, Aave, or Compound, users can simply connect a wallet and begin staking or borrowing.
Trustlessness – No one entity controls a user’s finances in DeFi. There is no loan approval and no extra hoops to jump through when supplying or withdrawing funds. Note that “trustlessness” does not mean “poor security.” For example, Compound touts “institutional” levels of reliability and safety. For its part, Minterest has undergone four security auditsto date.
Liquidity
DeFi lending protocol participants gain access to liquidity, opening up a variety of use cases for both individuals and other ecosystem protocols. Borrowers utilize liquidity for several reasons.
Arbitrage. Arbitrage opportunities are aplenty across the market. The price of one asset may be higher or lower across different DEXs. A flashloan would allow a user to borrow that asset, swap the asset on the DEXs, make a tidy profit, and then pay back the loan all in one transaction.
Trading Positions. Borrowing assets to gain exposure to an asset forlonging or shorting it is a widespread use case. For example, if a trader believes the price of BTC will drop, they can lend a stablecoin, borrow BTC, sell BTC at spot price, wait for the price to drop, purchase BTC again, pay back the loan, and pocket the difference.
Short-Term Loans. Purchasing real-world goods and services without selling the original assets is commonplace for groups, like Bitcoin miners. Bitcoin miners fund the expansion of their operations by using their BTC portfolio as collateral to borrow stablecoins to purchase new mining equipment. Why?
Miners maintain exposure to the underlying asset
Miners do not trigger taxable events for selling the underlying asset (depending on the jurisdiction, of course)
DeFi’s True Value: Wealth-Building from Tokenized Assets
All of the above benefits get to the beating heart of DeFi: providing advanced wealth-building tools for users.
In DeFi 1.0, this took the form of yield farming. Demand for certain assets meant lenders on DeFi protocols could expect significant returns on their positions; rates of 20% APY were remarkable compared to TradFi savings interest rates of less than 1% but entirely unsustainable.
DeFi 1.0 quickly developed a yield farming problem. Investors earned sky-high returns built on the foundations of hyperinflationary tokenomics where tokens contained no underlying value. The unraveling of this flimsy structure came tumbling down during the crypto bear market, resulting in bank runs on protocols. Users withdrew and sold off their assets in droves as high-profile projects, like Terra, highlighted critical weaknesses in their designs.
Yield Farming Transitions to Real Yield
Despite high-profile failures, lending protocols functioned as they were designed to during the adverse market conditions, protecting lenders and borrowers where CeFi players did not due to their opaque walls and reliance on unwarranted trust from their users. In 2023, DeFi lending protocols are emerging as foundational layers for every major blockchain, as Aave and Compound have demonstrated.
Aave and Compound, with significant TVL, collect fees from activities (borrowing, lending, flash loans) on the protocol. Both protocols feature a governance token, providing some limited utility for repaying fees.
The question for DeFi remains how to develop dependably attractive yields (thus attracting greater TVL) without relying on an inflationary model.
So where does DeFi go from here, and how can Minterest improve the existing model?
Current DeFi Challenges
Dysfunctional governance tokens. Both Aave and Compound feature governance tokens. Both tokens convey voting rights for their respective protocol.
However, neither Aave nor Compound have made their tokens integral to the function of the protocol. The tokens do not derive any utility from the underlying lending and borrowing activities on these respective protocols, nor do the protocols derive value from the tokens outside of governance.
Predatory liquidations and outflow of fees. Protocol fees are generated from three areas: interest rate differential between lenders and borrowers, flash loans, and liquidations. Most of this value is parties who are not liquidity providers, even though the value is derived from them. Additionally, current DeFi lending protocols rely on third-party liquidators to remain solvent. Those liquidators are incentivized by collecting a portion of each loan liquidated, essentially a bounty for detecting under-collateralised positions on the protocol. And these liquidations siphon approx 50% of protocol value to themselves. What is clear is that there needs to be more alignment of incentives between liquidity providers and the protocols.
Future-Focused User Benefits
In both cases, DeFi 2.0 can build on the existing model to create additional value for users. Minterest is designed to do just this.
Minterest captures more fees. Minterest captures more fees than others because it handles liquidations through its innovative auto-liquidation engine*. Thus, Minterest can capture those fees unlike other protocols where this value is lost to third parties.
Minterest transfers all value back to users through its Buyback Engine. The Buyback Engine is designed to route up to 100% of net protocol fees to on‑chain buybacks for eligible MNT stakers and governors when activated, subject to governance approval, available reserves, and market conditions.
MNT is more than just a governance token. It’s a medium of value transfer, and the above benefits feed into the core function of the MNT token. Minterest distributes the value it accrues from its various operations right back to the users of the protocol. The MNT token is the medium by which this value is transferred back to participants, linking MNT to the growth of the protocol’s TVL.. Such performance capabilities in a token are unique in the sector and form the bedrock of a new evolution of DeFi protocols.
Minterest provides Sustainable Real Yield. Minterest is designed to align the incentives of its core user, liquidity providers. Greater liquidity generates more significant fees, increasing the distribution of value back to these users. The results are fully sustainable yield farming for users and a DeFi revolution with the highest possible long-term APYs with the sector’s lowest borrow cost.
*Note that Minterest’s Autoliquidation Engine has been renamed to Solvency Engine.
As the DeFi economy grapples with a bear market and the threat of looming regulation, one question is driving investors as they evaluate old and new protocols alike:
Where is the underlying value?
Or put an old-fashioned way, what does this protocol offer its users? One answer to that question is the idea of “real yield”, a topic that has generated increasing buzz in the crypto world. To understand what real yield is – and how Minterest provides real yield – you need to start with the current state of DeFi: where it is, what went wrong, and how DeFi 2.0 promises to improve.
DeFi (Decentralized Finance) refers to a growing ecosystem of financial applications built on blockchain technology that aim to provide financial services without the need for traditional intermediaries such as banks or financial institutions. The last crypto bull run saw easy money pumped into DeFi in vast quantities, fueled by the sector’s vast potential:
Decentralized exchanges, for peer-to-peer trading of cryptocurrencies and other assets without the need for a centralized exchange.
Lending and borrowing platforms, enabling users to earn interest on their assets or to borrow funds from others using smart contracts to manage the terms and conditions of the loans.
Stablecoins, tying digital assets to a stable asset such as the US dollar, allowing for more stability in volatile crypto markets.
Tokenization, converting traditional assets such as real estate or art into tokenized form and making it possible to trade those assets.
But in the rush to claim the vast wealth DeFi promised, new protocols started to take shortcuts. DeFi startups lured retail investors, flush with cash, by promising sky-high yields. Unsustainable yield farms grew in popularity, fueled by ever-greater demand.
What drew users in? Part of the allure was found in DeFi’s inherent advantages over TradFi. With DeFi, anyone could access advanced financial tools; borrowing and lending functions were no longer walled off behind staid financial institutions and vested interests.
DeFi held immense promise as an entirely new financial model. Unfortunately, in the rush to build a new model, DeFi began to repeat some of TradFi’s mistakes.
DeFi: New Financial Model, Same Old Problems
The early wave of DeFi protocols – DeFi 1.0 – eventually developed a set of core problems that were exposed dramatically during the crypto crash of 2022.
Complexity
Many DeFi platforms were difficult for average users to understand, leading to potential security risks and difficulties in accessing the platform.
Centralization
Despite being marketed as decentralized, many DeFi platforms werehighly centralized and controlled by a small group of individuals, undermining the decentralized nature of DeFi and leaving it open to manipulation.
Market Volatility
DeFi proved highly susceptible to market volatility with dramatic and rapid price changes. As ETH went, so did the market; at its peak, the Ethereum blockchain was responsible for nearly 97% of DeFi TVL. That market share has since decreased to around 60% as more players have entered the DeFi space, providing some much-needed flexibility.
Fraud
Ponzi schemes abounded in DeFi 1.0, as bad actors took advantage of the hype and capitalized on DeFi’s unknowns. This was the case for many protocols that only produced high yields by relying on a steady stream of fresh liquidity, primarily from retail investors.
Scalability/Sustainability
DeFi 1.0 largely rode the wave of the crypto bull market, foregoing long-term development in favor of short-term gains.
The bear market forced a reckoning. Fraudsters were exposed, poor business practices came to light, and major players in the sector (3AC, Celsius, FTX, etc.) collapsed.
Maturing Markets
In the aftermath, a new vision for DeFi emerged. Despite DeFi 1.0’s problems, it served as a clear proof-of-concept. The market wanted DeFi exchanges, borrowing and lending protocols, tokenization, etc. The underlying use cases were sound, even if numerous protocols didn’t hold up.
In fact, DeFi 1.0, and the resulting crash, bears strong similarities to an earlier tech market cycle: the dot-com bubble of the late 90s and early 2000s.
Note this comparison of the two:
Dot-com companies crashed – hard – in the early 2000s. In fact, value just after the initial crash rested at a level not much higher than before the boom took off. On the surface, dot-coms seemed to be right back where they started a few years before.
Zoom out, and a vastly different story emerges.
When the dot-com bubble burst, two things happened:
Companies with poor underlying fundamentals failed.
The underlying technology grew.
Why? Because there was genuine underlying value in the technology – just not in most of the applications.
DeFi 2.0 finds itself in the same position.
There’s a renewed emphasis on sustainability and profitability. With the hype largely gone from the market, investors can evaluate projects more clearly.
On the project side, new DeFi protocols need to deliver clear value based on rock-solid industry fundamentals. And in typical crypto fashion, this search for underlying value has led to a new term: real yield.
Finding Real Yield
Real yield implies sustainability and value. Gone are the sky-high yields of Anchor Protocol and a yield-farming model built on attracting an endless stream of new investors. DeFi 2.0 relies on real yield, returns based on protocols that meet proven use cases and have a clear path to profitability.
DeFi 2.0 also involves a return to the core principles that set DeFi apart from traditional finance, including:
Decentralization
Accessibility
Trust
Reduced costs
Speed
Minterest leads the charge towards DeFi 2.0, building a protocol with solid fundamentals to create genuine underlying value. It’s that value that powers real yield in a way that DeFi 1.0 never did.
Minterest HODLers will receive a 51.7% uplift in their proportion of total circulating supply due to a tokenomics update announced today.
A streamlined improvement of Minterest tokenomics will result in a total circulating supply reduction from 100 million MNT to just less than 66 million. Emissions now occur largely over 5 years, with only 1.3% of supply via Standard Emissions, vesting over the 6th year.
The streamlined, more efficient tokenomics achieves all of Minterest’s original design needs; allowing the protocol to develop a fully self-sustaining, self-funding token economy.
Users retain all their MNT allocation
All MNT holders retain the same number of tokens. The marked reduction in circulating supply delivers a major boost to all current allocations, since the proportional value of existing token allocations has increased by over 50%.
Lock & Load
Supporters who opted into Lock & Load reap extra benefits. With the tokenomics update, allocations doubled with Lock & Load add a further 51.7% increase to their relative, newly doubled value.
Minterest’s self-sustaining model is better than ever
Nothing in the revision changes the long-term goal – to create a sector-leading, self-sustaining DeFi protocol. The changes tighten tokenomics, shorten the overall emissions schedule, and generally make things simpler and easier to understand.
Launch Schedule
Updating the tokenomics requires amendments to the protocol’s vesting contracts. Private Launch will be rescheduled next month to enable this to occur. The final date depends on completion of Minterest’s final security audit, now expected to occur in the latter half of February.
The revised Private Launch schedule only marginally impacts other key roadmap events, like the protocol’s DAO and final interface roll-out and Minterest’s Public Launch, which are progressing to schedule.
2022 marked a year of dramatic developments at Minterest. The protocol switched chains, never a small endeavour, making the jump from Moonbeam to Ethereum. Broader market developments forced major shifts in Minterest’s launch and product cycle, delaying its intended unrefined early launch strategy to deliver instead a finalised, highly advanced protocol feature suite.
The year finished with a flurry of activity, including revisions of Minterest’s tokenomics. All together, it’s no surprise the Minterest team has poured more than 50,000 hours into the project since inception, with Minterest now the most extensive, most secure code base ever conceived in DeFi.
So, what went down last year exactly? Here is a selection of key milestones in 2022.
Early 2022: Planning to launch
As 2022 began, Minterest was in the middle of community-focused fundraising events. The Community Allocation Event (CAE) took place in late January, and allowed supporters to secure MNT token allocations up to 500 USDC at the lowest price in the upcoming Liquidity Bootstrapping Pool (LBP).
That event was quickly followed by the LBP, which in February raised over $5.5 million to support continued bootstrapping of the protocol. Together, the CAE and LBP provided crucial early support for the protocol and established an ever larger base of supporters.
Early-to-mid 2022: Major market shift
In late February, Russia’s invasion of Ukraine played into emerging macro-economic factors, which together saw market sentiment decline significantly. Hindsight showed the broader crypto market cap had peaked in November 2021 and by early April 2022 was beginning to face stiff headwinds.
Minterest planned to launch on Moonbeam, but increasing instability in the sector combined with Ethereum’s continued DeFi dominance, caused the switch to Ethereum in April 2022, a critical strategic decision. It resulted in extensive unforeseen development work, but the decision has been applauded ever since.
In May, the crypto crash, aka the Do Kwon Krash, began with the infamous Terra/Luna implosion. The algorithmic Terra USD stablecoin lost its peg and Luna’s value plummeted from over $100 to mere fractions of a cent.
What no one saw coming was the brewing macroeconomic negativity that turned Luna’s implosion into a match which ignited crypto’s sector-wide collapse.
Minterest did not sit idly by during these events. A constant stream of information came from key players with regular AMAs and community discussions held on Discord and social media to keep supporters informed.
Minterest responded rigorously to the changing market conditions. First and foremost, that meant reappraising not just the launch schedule but the overall protocol product strategy. Doing so protected the interests of all token holders investors while ensuring the protocol’s best chance of success.
A snapshot of fundamental improvements the team worked over the year include:
The team also unrolled Lock & Load, a key opportunity to reward early supporters who participated in the CAE and LBP events at the start of the year. Lock & Load was a unique chance for such supporters to double their MNT token allocation in return for locking up their MNT for a year and vesting them over the following 12 months. The offer was hugely successful, with over 600,000 tokens or more than 50% of eligible participants taking it up.
2022 into 2023: Building a better DeFi
Where does that leave Minterest today?
Key token markets deployed
Whitelisted access to key features for product testing
Lock & Load concluded in December, with over 50% acceptance for eligible tokens
4th security audit completed
5th security audit on the way
Full functionality rollout and NFT access early 2023
Public launch early in 2023
Despite the carnage of the broader crypto market, Minterest has never panicked. The bear market has separated, and continues to do so, the good from the bad, with the opportunity now open for new projects with strong fundamentals to emerge and stake a claim for dominance as the cycle resets.
DeFi is evolving. Its new reality means hyper-inflationary token emissions are no more. This has allowed sound, sustainable projects to now develop and flourish, which will be the building block of the next generation of DeFi, with Minterest leading the way.
For DeFi to fulfill its promise and powerfully contribute to the financial world’s mainstream it must deliver absolute reliability over time. That means total security in everything from liquidity provision to third party integrations.
Security gets delivered in numerous ways, but it starts with rock solid smart contracting architecture designed with a minimum of external contact points to prevent exploit potential. In almost all cases, the KISS principles applies; Keep It Simple Stupid. A lack of inter-relationships between protocol assets is also essential, as it reduces vectors for economic attacks.
Security also relies on token markets maintaining deep liquidity over time, because low liquidity in specific pools is a factor in almost all economic attacks. A lending protocol, like any financial application, must de-risk such events well in advance as changing circumstances warrant. Waiting till later is simply never an option.
Rigorous, independent security audits are fundamental and confirm a secure, high-quality code base. That is why Minterest has undergone four of such audits even before launching. A relentless ongoing security audit schedule is also part of Minterest’s operational future.
An effective bug bounty program brings it all together. It allows a community of blockchain savvy developers to ongoingly contribute to the protocol’s security and the value and importance of such a program cannot be overstated.
Security Audits
To date Minterest has completed four security audits by leading firms.
As is normal, all issues identified were addressed during the process.
Security audits are vital in identifying external threats and provide recommendations to address them. Essentially, when it comes to network security there can never be too many eye-balls. Security audits also apply industry standards and are important in reassuring users such safety and security standards have been met, which is key to trust.
What were the results of the security audits?
Trail of Bits (Q1 2022): identified one critical issue which was immediately addressed, as well as other non-critical items which were addressed in the later version audit report.
Hacken (Q2 2022): scored Minterest a 10 out of 10 for both documentation and architecture quality.
PeckShield (Q2 2022): found no vulnerabilities of critical or high severity levels, stating “The current code base is well structured and neatly organized. Those identified issues are promptly confirmed and addressed.”
Zokyo (Q4 2022): scored Minterest 93/100, confirming its qualification for listing on exchanges, with 98% testable code exceeding industry standard 95% and total contract security being high.
Bug Bounty Program
Minterest’s upcoming bug bounty program will incentivise and reward individuals who contribute to Minterest’s security. If you’re interested in the bug bounty a summary is at the end of this article.
What else?
Minterest also builds on the following:
In house security team.
24/7 monitoring – automated and on-call.
Treasury security with multi-sig hardware wallets.
Crisis planning with scenario processes and mitigation plans.
Security protocol for the physical safety of the wallet holders.
Undertaking a fourth independent audit demonstrates Minterest’s commitment to security with high scores from all auditors providing external insight into Minterest’s professional and measured approach to protocol security.
Yield Gets Real with Minterest – and that starts with rock-solid protocol safety.
Security takes top priority at Minterest, and the protocol is subject to the highest standards of security auditing possible. In line with our mission of maintaining transparency and delivering a great product, we have engaged Zokyo to undertake an independent fourth security audit of the Minterest protocol.
Zokyo sports sterling credentials as an end-to-end security resource that provides distinguishable security auditing and penetration testing services alongside prominent vulnerability assessments. Their team consists of world-renown hackers, cryptographers, and engineers that have focused on the nuances of cybersecurity within the blockchain space since 2016. In 2018, they were ranked #1 Smart Contract Auditing firm by Forbes.
What’s Inside the Zokyo Security Audit Report?
Extract from the audit report
The goal of the audit was to verify that the contracts function correctly and with a known level of security. To that end, Zokyo checked the code line by line. Auditors also checked the code of the contracts against their own checklist of vulnerabilities, validated the business logic of the contracts, and made sure that best practices in terms of gas spendings were applied.
Zokyo Security has concluded that the smart contract passes security qualifications to be listed on digital asset exchanges, giving it an Audit score of 93.
Extract from the audit report
According to the evaluations performed by Zokyo, 98% of the code is testable, which is above the industry standard of 95%. The total contract security was high, and the contracts were well-tested and well-written.
There were two high-severity and two low-severity and informational issues found during the manual part of the audit. One of the high-severity issues was connected to unsafe contract initializations. The other one concerned the absence of swap parameters validation.
The first issue was successfully fixed by the Minterest team, while the second will be fixed later. All other issues were successfully fixed or verified by the Minterest team.
High Severity Issues
1) Possible re-initialization of the contracts
Some of the contracts did not utilize the initializer modifier from standard OpenZeppelin contracts.
Recommendation: Use the standard initializer modifier from OpenZeppelin in all contracts to ensure that the contract is initialized only once.
Status: Resolved
2) Swap parameters are not validated
DeadDrop.sol: function performSwap()
Those parameters that are packed in the ‘data’ bytes parameter are not validated. This can lead to some of the possible attacks.
Recommendation: Validate swap parameters. Validate the correctness of tokens, recipient, and the minAmountOut parameter.
Status: The fix will be implemented till the next audit revision. Until then, the contract will not be used.
Low Severity Issues
1) Pause on the Buyback might block protocol actions
Buyback.sol: function updateBuybackAndVotingWeights(), line 232. This function is called every time by RewardsHub.sol (in distributeSupplierMnt()and distributeBorrowerMnt()), which are called every time the user performs actions in MToken, such as deposit/borrow/repayBorrow, etc. Thus, in case Buyback.sol is set on pause, all the actions on the platform will be frozen as any transaction will revert.
Recommendation: Verify that protocol actions are not blocked due to the pause on Buyback.sol.
Status: A ‘relaxed’ version of function was added, which doesn’t block the protocol due to pause.
2) Validation is missing
Validation is missing in the following functions:
1) Liquidation.sol: function constructor()
2) KinkMultiplierModel.sol: function constructor()
Minterest holds to the highest levels of security in the crypto space. The broader industry has significantly stepped up measures to protect funds by employing more rigorous external and internal code audits and overall platform security processes. By undertaking a fourth security audit, Minterest has built a well-tested platform fully capable of protecting our users and customer funds in a truly decentralized manner.
UI/UX design in the DeFi space has come a long way in recent months. Clunky, lacklustre user experience (UX) is on the decline. Design no longer feels like it focuses solely on developers in the space. Instead, intuitive and customer-centric user experiences are increasingly designed for retail and institutions alike.
However, just like crypto, DeFi is still in its infancy, and most users would agree that the majority of the DeFi applications out there today can be difficult to navigate. There’s a steep learning curve, information presentation can be confusing, and there are few (if any!) tools to help manage your risk.
Exceptional UX is especially important in DeFi due to its complex and multifaceted nature. With clear information and user-oriented design, Minterest aims to deliver DeFi’s best user experience.
Presenting the Minterest UX (Beta)
The Minterest Design Philosophy
Minterest began rebranding from the ground up after the collapse of the Terra ecosystem that pushed the entire DeFi space into an evolutionary ecosystem shift. At the same time, there was an opportunity to improve Minterest and position it to be among the frontrunners of the new DeFi world.
The design team revisited everything: the target market, their behaviour and needs, and the broader DeFi ecosystem, all with the goal of building a best-in-class user experience.
Here are some of the key components that came out of that effort.
Note: Minterest is in Beta right now and there will be significant design changes in the public release. More awesome things to come so stay tuned!
App Core Design
If you look at other DeFi protocols in the space, they provide very little information for you to track your investment behaviour and current status of your positions. That includes critical information for borrowers and lenders, including the result of any additional actions like re-supply or withdrawals.
To solve this problem, Minterest combines every piece of information and fits them into a compact dashboard, all in one place. With more accessible information, you can make better decisions when it comes to your investments and risk management.
Minterest positions performance metrics right in your face; the idea was inspired by a car dashboard (more about that later, surprise!). When you’re driving a car, let’s say a sports car, you have a split second timeframe to stare at the dashboard and get all the information that you need, be it RPM, Fuel, or speed levels.
The Minterest dashboard operates on similar principles. All the information, at one glance, with intuitive gauges, so you don’t feel overwhelmed trying to hop around to different sections of the application.
Colour Theme
The DeFi space right now is divided into dark/white themes. Instead of going with one single theme, Minterest utilises the black theme for visual design elements and white theme for more technical and robust table style data.
Minterest also analyses users’ logical eye movement and follows 5-second readability rules, keeping the data easily understandable and visual noise to a minimum.
Extract from the Guidebook
Device Types
Unlike Web 2.0, Minterest follows other DeFi protocols in shying away from a mobile-first approach. Financial decisions are not made purely on mobile, particularly with advanced systems like lending protocols.
That said, Minterest does focus on mobile friendliness and usability. Minterest users should be able to act on the go whenever and wherever they need to. Minterest provides more data more easily through the dashboard, and in the event of market turbulence or extreme volatility, Minterest users need to be able to take action on mobile as well as desktop-based interfaces…
Alert System
Another design vector that Minterest provides is greater awareness of your current positions. Many protocols today don’t have any notification or alert systems in place, and it can come as a surprise when your positions are liquidated.
For that reason, awareness is one of Minterest’s main goals and a key part of its customer-centric approach. Minterest provides multiple tools to alert you before anything happens to your assets, so you can sleep better at night, or enjoy that vacation.
Note that Minterest does not 100% guarantee that your positions will not be liquidated with little or no warning, but the protocol is designed to provide the best possible information before things get to a point of no return.
Minterest UI/UX: Knowledge is power in the new DeFi
The crypto market crash exposed just how little information many investors had about the crypto world. From FTX revelations to sudden stablecoin collapses, there was a great deal of misinformation and noise in the ecosystem.
Minterest’s new UI/UX provides a bit of clarity, giving users improved access to vital information in an easy-to-grasp display.
In the emerging, post-crash DeFi world, knowledge is power, and Minterest delivers.
Bonus: Minterest Merch is coming…
Community members asked for it, and Minterest answered. Here’s a taste of the upcoming Minterest merchandise.
Wear a Satoshi shirt with a Satoshi case on your mobile, that’ll be quite a flex!
Here are the illustrations of what is about to drop!
Minterest announced the revised tokenomicsearlier this month, delivering significantly reduced circulating supply over the first 18 months. The revised tokenomics reflect the new reality of DeFi and underpin the protocol’s success in tight market conditions.
Specifically, lower circulating supply supports the protocol’s token economy, reinforces the value of emissions rewards as Minterest launches and enables the growth of TVL. One major change made in Minterest’s tokenomics goes even further, and reduces circulating supply long term to further support the protocol’s ability to sustainably outcompete. This is the implementation of a Strategic Reserve.
What Is Minterest’s Strategic Reserve?
The role of the Strategic Reserve is to act as a sink. It stakes MNT to earn Governance Rewards which it never sells. Soaking up MNT over the long term creates on-market scarcity which supports demand and benefits from the effect of compounding.
At launch a significant portion of total circulating supply, approx. 5 million MNT tokens or 5%, is held in the Strategic Reserve. These tokens were previously part of the Minterest team token allocation.
The Strategic Reserve grows its balance beyond just earning MNT as Governance Rewards. It will add any unused surpluses from both NFT Rewards and Buyback Rewards. In both cases, surpluses are expected, as those allocations are deliberately larger than required, for 2 reasons:
The allocation of NFT Rewards of 50% of Standard Rewards guarantees no one is ever disadvantaged by the presence of NFT holders.
The allocation of Buyback Rewards allows for absolute worst case scenarios, where a black swan event requires more emissions to attract TVL.
Given this, over the first 3 years the Strategic Reserve will likely accumulate a very significant proportion of total circulating supply, possibly as high as 20%.
Why Include a Strategic Reserve?
On-market scarcity created this way supports long term demand of MNT. For Minterest, more TVL correlates to more value able to be spent in its buyback, which results in more value being captured and held by the Strategic Reserve. All of this further empowers Minterest’s flywheel effect.
More TVL allows more fees which fuels more buybacks. More buybacks means the Strategic Reserve accumulates more MNT tokens, reducing on-market supply to spur even further demand for MNT.
Simply put:
More TVL = More Buybacks = More value accumulated by the Strategic Reserve
The offer can be accepted until December 21, 11 UTC
Minterest is a sustainable lending protocol that creates real underlying value in its token economy and rewards contributors for their support. Consistent with that ethos Minterest announces Lock & Load: an exclusive offer for Minterest LBP and CAE participants.
Lock & Load allows participants to opt-in to receive double the amount of their allocation for locking their tokens for 12 months. The increased allocation is then vested block-by-block over the following 12 months.
Why Lock & Load?
Lock & Load reduces MNT circulating supply in the first 24 months, supporting the protocol’s token economy in what are likely to be tight market conditions. Users who take up Lock & Load receive the token reward for contributing to Minterest.
This exclusive offer helps jump-start the protocol’s flywheel effect and keeps MNT token liquidity on-chain during the crucial launch phases, positioning Minterest for early success.
Lock & Load is intended for and best suits strong project supporters who believe in Minterest’s ability to carve out a significant role in the future of DeFi.
How Does It Work?
Lock & Load is rewarding, but not complicated. Connect your wallet, the same wallet used in the CAE or LBP, confirm your MNT, your Lock & Load allocation and choose the Lock & Load option. At that point, your tokens will be locked for 12 months.
A few key considerations:
Your MNT allocation doubles immediately on accepting Lock & Load. After the 12-month lock, your newly-doubled MNT will vest to you block-by-block over the following 12 months.
While after 12 months an increasing proportion of your MNT will continually become tradeable, in total it will take 24 months for all of your MNT to be fully tradeable.
When MNT is locked, it cannot be transferred to another wallet or staked. MNT will become transferable as you receive them block-by-block during the 12-month vesting period.
Your MNT may be locked, but your voting rights aren’t. Voting rights vest block-by-block over 12 months based on your total Lock & Load allocation. Your voting rights also develop voting weight. As your voting weight increases, so does your loyalty reward, which increases your proportion of Governance Rewards earned when your MNT unlocks. Please check out Minterest’s white paper for more details.
What About NFT Rewards?
Lock & Load does not depend on NFTs; having one or not does not prevent you from taking up Lock & Load.
Minterest NFTs provide greater benefit for liquidity providers (LPs) who intend to supply and borrow over time. NFTs increase Standard Emissions for the holder once public access begins. Since Standard Emissions are tied to the amount of liquidity supplied and borrowed, the greater the amount, the greater the emissions. LPs with large amounts of liquidity who own NFTs therefore, gain more value from it than someone with less.
Users with a Minterest NFT who opt for Lock & Loadcan consider trading them to liquidity providers seeking Private Launch access and/or increases in their Standard Rewards when public access occurs. With only just over 400 allocated to date, the rarity of Minterest NFTs may make them highly sought-after by LPs seeking to maximise their yields.
How To Get Started?
The Lock & Load offer is exclusively available to Minterest CAE and LBP participants until just prior to MNT emission rewards starting.
If you are a Minterest CAE and LBP participant, and you have an MNT allocation, you can log into app.minterest.com and opt-in to the Lock & Load offer.
To learn more about the Lock & Load, head over to the terms & conditions.
“The species that survives is the one that is able to adapt to and to adjust best to the changing environment” – Charles Darwin, Origin of Species.
Since the Fed started tightening interest rates in 2022 to curb inflation and reduce market liquidity after a record cycle of qualitative easing, markets have completely changed. Sharply rising interest rates created a liquidity blackhole. Terra Network’s collapse initiated a market-wide correction, and crypto entered into a clear bear market.
Markets move in cycles, including booms and busts. This is not the first time crypto has found itself facing strong headwinds. And with each cycle, markets often go through a cleanse. Projects with unsustainable fundamentals get wiped out, removing them from the ecosystem. It happened in the infamous 2000 dotcom bubble with technology companies and crypto is no exception. Just as post-2000, the current bear market provides a new dynamic for emerging entrants to adapt to and exploit.
Minterest was built during a bull market and the protocol’s tokenomics were designed to satisfy the prevailing demands of both retail and institutional users. Post Terra’s collapse, everything changed. In some ways, this works to Minterest’s favour, but it requires being aware of and accommodating the newly emerging dynamics of DeFi demand.
To that end, we’ve made adjustments in the features and token economy of the Minterest protocol, and with it a corresponding revised whitepaper. The current DeFi ecosystem emphasises strong fundamentals and sustainability, and we believe Minterest excels at both. This blogpost explains in summary some of the changes that have been made.
DeFi’s New Reality
During the 2021 bull run, liquidity providers maximised yields using DeFi models with unsustainable inflationary emission rewards. Such projects’ high yields attracted tens of billions of dollars in liquidity. Super-returns became the ‘new normal’, fuelling even further boom-market speculation.
What happened next? Terra Network collapsed, markets followed suit, and the contagion of counterparty risk evaporated capital, adding fuel to the inferno of bankruptcies and insolvencies across the sector.
The super-yield party was over. The resulting hangover from unsustainable, hyper-inflationary models caused liquidity providers to fundamentally reassess how they deployed capital.
Minterest’s Revised Tokenomics
The revision of Minterest’s tokenomics takes full advantage of DeFi’s new environment.
Circulating supply is highly disciplined, on-market supply even more so.
For project supporters, other than LBP participants, MNT is locked for 12 months prior to 12-month vesting.
All emission rewards vest over 12 months.
Standard emission rewards are markedly reduced; only one-third of previous rewards, better reflecting DeFi’s new reality.
Governance rewards emissions are maintained, strongly favouring staking and governance participation and incentivizing long-term holding.
A new Strategic Reserve accumulates MNT from buyback processes, supporting on-market scarcity and MNT demand.
Disciplined tokenomics that constrict supply powerfully support the protocol’s token economy. The new tokenomics protect Minterest from likely worsening macroeconomic headwinds while allowing the protocol to successfully attract long term TVL despite such conditions.
Finally, Minterest’s tokenomics achieve something else. Standard emissions that vest over 15 years and the Strategic Reserve enable the protocol to become fully self-sustaining.
Minterest Circulating Supply Comparison
Month
1
6
12
18
24
30
36
42
48
54
60
On-Market
1,780,938
2,162,165
3,538,364
14,279,624
24,080,576
26,678,958
29,277,339
30,768,052
32,258,765
33,749,478
35,240,191
Minterest
3,612,915
6,456,115
9,786,404
15,574,119
21,372,886
27,160,601
32,959,368
36,437,798
39,468,625
41,936,968
44,405,310
Whitepaper 1.2
5,393,853
8,618,280
13,324,768
29,853,742
45,453,462
53,839,559
62,236,707
67,205,850
71,727,391
75,686,446
79,645,502
Whitepaper 1.1
10,513,873
23,080,738
38,160,975
46,490,713
54,820,450
62,537,875
70,255,300
77,972,725
85,690,150
92,845,090
100,000,030
Month
1
6
12
18
24
30
36
42
48
54
60
On-Market
1,780,938
2,162,165
3,538,364
14,279,624
24,080,576
26,678,958
29,277,339
30,768,052
32,258,765
33,749,478
35,240,191
Minterest
3,612,915
6,456,115
9,786,404
15,574,119
21,372,886
27,160,601
32,959,368
36,437,798
39,468,625
41,936,968
44,405,310
Whitepaper v1.2
5,393,853
8,618,280
13,324,768
29,853,742
45,453,462
53,839,559
62,236,707
67,205,850
71,727,391
75,686,446
79,645,502
Whitepaper v1.1
10,513,873
23,080,738
38,160,975
46,490,713
54,820,450
62,537,875
70,255,300
77,972,725
85,690,150
92,845,090
100,000,030
Month
1
6
12
18
24
30
On-Market
1,780,938
2,162,165
3,538,364
14,279,624
24,080,576
26,678,958
Minterest
3,612,915
6,456,115
9,786,404
15,574,119
21,372,886
27,160,601
Whitepaper v1.2
5,393,853
8,618,280
13,324,768
29,853,742
45,453,462
53,839,559
Whitepaper v1.1
10,513,873
23,080,738
38,160,975
46,490,713
54,820,450
62,537,875
continued
Month
36
42
48
54
60
On-Market
29,277,339
30,768,052
32,258,765
33,749,478
35,240,191
Minterest
32,959,368
36,437,798
39,468,625
41,936,968
44,405,310
Whitepaper v1.2
62,236,707
67,205,850
71,727,391
75,686,446
79,645,502
Whitepaper v1.1
70,255,300
77,972,725
85,690,150
92,845,090
100,000,030
What’s Next?
This Whitepaper Update is the tip of the iceberg. Detailed tokenomics analysis will follow, then protocol Private Launch, NFTs, an offer specific to LBP participants (including the CAE), the roadmap to full public access, new branding and interface design, plus much more.
Stay tuned and watch this space for more information!
Lending is the second largest sector in DeFi space, with more than $18.79 billion worth of TLV locked across 159 different protocols as of Aug 2022. In July last month, the borrowing volumes were sitting at $5.1 billion, even during the worst bearish market cycle that we are currently witnessing.
During the second quarter of 2022, we saw many CeFi (Centralised Finance) companies like Celsius, BlockFi, and Voyager going either bankrupt or insolvent, with more than $26 billion assets under management combined, forcing customer withdrawals overnight.
However, DeFi worked flawlessly 24×7, despite the bad macro conditions. Celsius was forced to pay down its $400M DeFi loans on Maker, Aave, and Compound to prevent its collateral from being liquidated.
How do DeFi protocols ensure solvency of the system?
DeFi leverages a process called the liquidations, which is handled by the liquidators.
DeFi loans are over-collateralised. Liquidations in lending protocols occur when a borrower’s position becomes under-collateralised, and this may occur when the price of a borrowed asset increases and so reduces the comparative value of collateral backing of the borrowing, or the price of collateralised assets fall.
External Liquidators – The traditional way of handling liquidations
Just like miners in a Proof of Work system and validator nodes in a Proof of Stake system, external liquidators are entities that are incentivised to keep the entire system functioning and solvent.
External Liquidators individually maintain bots to scan lending protocols and identify under-collateralised borrower positions and buy those positions at a discount that ranges anywhere between 5% to 15%.
One of the issues with this design is that a borrower’s position is almost always over-liquidated beyond the amount required to return the borrower’s position to solvency. This happens because a liquidation needs to be economically viable for liquidators.
Minterest Innovation – Automated Liquidation
Instead of relying on external liquidators, Minterest protocol itself undertakes the liquidator role and that directly benefits the borrowers, as algorithms do not require economic incentives to participate in the liquidation processes.
The protocol is therefore able to economically liquidate significantly smaller percentages of borrower collateral which results in a more equitable and fairer liquidation process.
Liquidators play an important role in the DeFi ecosystem to keep the system solvent, and they are economically incentivised to do so. Minterest is bringing new innovations in the space with its automated liquidation engine to directly benefit the borrowers and remove reliance on third-party counterparties.
There is one truth about the markets; they move in cycles of booms and busts. This spring and summer is not the first time crypto has been in a strong downtrend. And what has made this bear market so brutal is the global macroeconomic conditions that caused a liquidity crunch across all sectors.
You might have heard about the recent insolvencies and bankruptcies of centralised lending institutions with billions of dollars under management, resulting in the freeze of customer withdrawals overnight.
Celsius, a crypto lender with $20 billion worth of assets under management, was recently forced to freeze customer withdrawals.
BlockFi, one of the top 5 largest crypto lenders, was essentially bailed out by FTX with a deal that provided a $400M line of credit.
Voyager filed for bankruptcy protection blaming a crypto market crash that caused it to freeze customer withdrawals. Just like Celsius and BlockFi, Voyager is also one of the largest crypto lenders with $5.9 billion in crypto assets at the time of its bankruptcy filing.
Voyager went one step further advertising blatantly that customers’ funds held by Voyager are FDIC insured. The FDIC issued a cease-and-desist statement to Voyager because of the false claims that its customers would have government protections.
However, those were the centralised finance institutions (CeFi) with no transparency on the usage of customer funds. They went silent, but DeFi is working 24×7.
Decentralised Finance worked well, and protocols like Aave, Compound, MakerDAO – all functioned flawlessly 24×7. DeFi allows customers to monitor the protocols on the blockchain. CeFi institutions rely on vague promises and false claims, with little to no transparency.
The collapse of the major CeFi institutions can largely be attributed to the fact that they did business with counterparties (the likes of 3AC) that went either insolvent or bankrupt. However, The troubled CeFi institutions were forced to pay back the outstanding loans on DeFi protocols first, as the rules were enforced by smart contracts that are fully transparent and don’t rely on counterparties for settlement.
Celsius was forced to pay down its $400M DeFi loans on Maker, Aave, and Compound to prevent its collateral from being liquidated. The over-collateralization in DeFi protects the solvency of the protocol and customers’ funds.
These unfortunate series of events during Q2 2022 have proved that core pillars of DeFi, like lending and AMMs function as intended with foundations that are rock solid and fully transparent.
DeFi is the financial backbone for the entire economic ecosystem built on blockchain, both for retail and institutions. DeFi lending protocols rely on over-collateralization with far better risk management to secure the lenders’ funds in case of an unforeseen scenario where chances of a default are higher.
We see lending and borrowing in DeFi becoming the ultimate gateway to crypto for retail and institutions that are looking to grow their capital in a secure and sustainable way with full transparency.
Bear markets are part of the market cycles. History tells us that bear markets drive innovation where the sidelined capital flows towards high quality projects that focus on long-term sustainability. At Minterest Labs, we started #BUIDLing in September 2020 and have achieved numerous technical milestones since then, including a highly sophisticated risk probability engine enabling users to mitigate their portfolio’s liquidation risk and significant improvements in the product design inspired by the elegant design of the Porsche 911 GT3 dashboard. We are now targeting an early Q4 2022 launch date with updated tokenomics.
DeFi will rise and shine because of the sheer nature of true decentralisation where you don’t need to trust a counterparty who is incentivized to twist the truth. The rules are enforced by smart contracts, providing visibility and transparency on every transaction that brings accountability.
Minterest is delighted to announce the completion of its third security audit by PeckShield, an industry leading blockchain security company, serving global customers including the likes of Maker and Aave.
PeckShield found no vulnerabilities of critical or high severity levels. There were 2 medium-severity vulnerabilities and 5 low-severity vulnerabilities found that got immediately fixed by the team.
According to PeckShield, “The current code base is well structured and neatly organized. Those identified issues are promptly confirmed and addressed.”
The full audit report is now public and available on our website.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to participating platform users. This way, users get protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses to users.
An excellent User Experience (UX) and a functional User Interface (UI) are vital components of any successful digital product. They are make or break design features that help a user successfully navigate a platform’s products, tools, and services. The way a user experiences a platform will ultimately determine whether they become a long-term user, or jump off to find an easier alternative. Exceptional UX is especially important in DeFi due to its complex and multifaceted nature.
The DeFi space has traditionally focused on functionality and tech, with the UX element often being sacrificed. Due to the rapidly changing iterations of DeFi, the industry has its work cut out; maintaining a balance between function and usability is a challenge that requires constant attention. The Minterest development team is well aware that the entire process of accessing a DeFi protocol requires a degree of technical aptitude which many potential users may not have. So in addition to building a robust platform, they are equally focussed on ensuring that the dashboard presents a frictionless and satisfying experience for all its users.
A clunky and convoluted UX or poor execution of UI on initial engagement with a protocol can result in a significant user drop-off. Someone who is new to crypto has to face a steep learning curve. To get to the point where they will be interacting with a protocol, they will have already had to figure out the crypto ecosystem, this may include deciding which blockchain network they want to hold assets on, understanding how to bridge assets from one chain to another, understand the impact of gas fees, and how to navigate the risks associated in participating on a DeFi protocol. The last thing they need is a confusing UX experience.
Minterest Continues To #BUIDL And Evolve
The entire industry has an incentive to improve UX on their protocols, as their mission to provide fair and equitable finance for all means that everyone needs to be able to access them. The Minterest dashboard journey has significantly evolved in the last year. After a series of lively workshops and brainstorming sessions, the vision grew from a few whiteboard images, to the current architecture and user interface that we have now.
It is important to note however, that what you will see in the Beta versions is not the final design, you should rather view it as a draft. The team is workshopping the final design over the next few weeks.
Minterest has come a long way, with two community allocation events, an LBP event, two major successful smart contract security audits, as well as the Beta launch under our belt. The UX and UI designs are now a core focus. We are constantly thinking about our users, and how to ensure that the protocol is easy and intuitive to use, and this means we will soon be able to show you our elegant, unique and very cool designs.
As always, we would like to remind you how important your support is – we couldn’t do it without you. Minterest keeps on #BUIDLing and striving towards being the most inclusive and fair DeFi protocol in the industry.
We can’t deny the volatile market conditions that rocked the crypto market recently. In all long-term market cycles, you will see booms and busts but eventually, companies with strong fundamentals and network effects survive and emerge stronger than ever.
To remind you about how far we’ve come, we have put together a #BUIDL week to showcase the great strides we have made and how we continue to create and deliver a best-in-class DeFi experience with long-term sustainable growth.
Why MNT is built for long-term sustainability
Minterest aims to deliver a product that will sustainably serve the market by delivering the highest long-term yield in DeFi. We achieve this by:
Leveraging the flywheel effect, where all the surplus generated by the protocol is used for the buyback process and then distributed back to the protocol participants.
Auto-liquidations* done by the protocol to capture liquidation fees.
The token emissions mechanism is designed to incentivise protocol participants which brings a higher degree of capital efficiency.
What have we achieved in Q1 2022
We started #BUIDLing nearly 20 months ago and have achieved numerous milestones since then. During the process, we learned that flexibility and adaptability are key attributes when it comes to delivering a great product. We listened to both our community and the market to gather important information and feedback to improve our product.
What Minterest accomplished in Q1 2022:
We successfully closed a Community Allocation Event (CAE) and a Liquidity Bootstrapping Pool (LBP) event.
TheCAE attracted over 20,000 subscribers in just the first week and the LBP event raised $5.52 million on Copper for the protocol treasury.
The CAE and LBP events revealed a high level of support from both our community and institutions.
Launch on Ethereum.
Following the highly successful LBP, Minterest received significant market feedback expressing support for the proposition to prioritise Ethereum for its initial launch phase, with Moonbeam and other EVM-compatible networks coming later.
If you want to learn more about why we chose Ethereum as our first blockchain, check out this article.
Two successful security audits.
Minterest views security as its top priority, which is why we have hired several top-level security companies to review our entire development process. We commissioned Trail of Bits and Hacken to ensure that our code meets the most stringent standards of code security.
Trail of Bits audited Minterest’s smart contracts across several categories for technical and economic review, namely:
Access Controls
Auditing and Logging
Authentication
Configuration
Cryptography
Data Exposure
Data Validation
Denial of Service
Error Reporting
Patching
Session Management
Testing
Timing
Undefined Behaviour.
After initial feedback from Trail of Bits, Minterest implemented the fixes and mitigations they suggested, and the protocol was given a thumbs up.
Hacken security audit used the following methodologies, focused on smart contract code review and security analysis for commonly known vulnerabilities:
Architecture Review
Functional Testing
Computer-Aided Verification
Manual Review.
In the initial audit, security engineers found 2 high, 4 medium, and 4 low-severity issues. These issues were quickly resolved by the team during the second audit. The security score after the second audit was 10 out of 10.
If you want to learn more about how Minterest fared in the audit, check out the Hacken audit report.
Minterest Beta launch.
The beta launch was split into two phases, namely:
Phase one – Internal access went live on 9th of May 2022. This first phase is only accessible to the internal team.
Phase two – In phase 2, the protocol will be available with limited functionality to early-stage supporters. The dates for the second phase will be announced when all the testing has been completed.
The beta launch allows the protocol’s functionality to be technically and economically stress-tested in a safe environment before launching publicly.
If you want to learn more about Minterest’s beta launch, check out this article.
Minterest Development: Behind The Scenes
Aside from the most significant milestones that we have achieved during Q1 2022, the Minterest development team has been busy optimising smart contracts and adding new functionalities to the protocol, while at the same time, improving the UI and UX to deliver a seamless customer experience.
Improvements in Smart Contracts
A new set of features were added to the smart contract; they were needed for the stable growth of the total value locked (TVL). One of those features is ‘Business Development’ which is meant to incentivise business developers to find and bring liquidity providers and reward them for participation in the protocol functions.
We’ve built an extensive Gatekeeping module to keep the protocol safe, but still have it as decentralised as possible.
We have also developed sophisticated NFT and Booster systems to track the reward boosting for our users. We also completed the on-chain part of our liquidation engine. This piece of software is backed with extensive mathematical and modelling work which contains non-trivial logic, as automated liquidations have never been done before in DeFi.
Minterest dashboard and risk assessment tools
We understand that users want to take leveraged loans without excessive liquidation risk.
This is why we implemented features such as notifications, collateral ratio gauge, liquidation risk gauge, as well as the portfolio back-test risk analysis feature.
The production version of the Minterest UI
We tested on many target audiences and launched a production version of our UI. The application is not only loaded with data, but it’s also user-friendly, thanks to our Indexer – a special service that scrapes data from chains and displays it to the web pages of each user.
The successful architectural design of Guardians.
We have designed the inner workings of several Guardians – the web services that will support the Minterest protocol. Some examples include the Liquidation Guardian for off-chain calculations of liquidation, and the Restaker Guardian that keeps users’ weight up-to-date in Buyback- to optimise their earnings. These services are not yet in development, but the architecture design and polishing of details are ongoing.
We Continue #BUIDLing
With the first quarter behind us, here’s what you can look forward to. We are focusing our efforts on UI and UX – i.e., new wallets, scrapping more data, showing more charts, sending messages through Telegram and emails, and building the Risk Management tool. We are also planning to build the Guardians, with the primary ones being the Liquidator and Restaker Guardians. Each Guardian is a big sub-project that involves developers, designers, mathematicians, and many other specialists in our team.
Closing Thoughts
With much of the groundwork being done, we are now close to delivering a product that we can all be immensely proud of. We are delighted to have reached this stage of development and we couldn’t have done it without the support of our amazing Minterest community.
Keep Calm and Carry on #BUIDLing.
*Note that Minterest’s Autoliquidation Engine has been renamed to Solvency Engine.
After two highly successful security audits and 20 months of #BUIDLing and testing, we are launching Minterest’s beta phase this week. This article will cover the beta phase functionalities, dates and general information about the launch.
Why the Beta Launch is Important
Minterest is nearing its launch and this means we will be bringing significant improvements to the DeFi space in terms of both capital efficiency and value accrual, benefiting the overall ecosystem. The beta launch is a vital step in the process as it allows the protocol’s functionality to be technically and economically stress tested in a safe environment before launching publicly.
Phase One – Internal Launch
Internal access has been live since the 9th of May 2022. The first phase is only accessible to the internal team. After this initial phase, the protocol will be opened to early stage supporters and CAE and LBP participants. The dates for the second phase will be announced when all the testing has been completed.
Phase Two – Opening up the platform to our supporters
After successful internal beta phase testing, we will open up the platform to our supporters. In phase two, every MNT token holder who participated in the CAE or LBP will be granted access to the protocol’s beta version, where they can see their account balance and rewards. However, the lending functionality will only be open to the whitelisted wallet addresses (private invitation only to designated Minterest partners).
MNT tokens secured via participation in our Community Allocation Event or LBP Token Event will be automatically staked on the protocol and assigned to their holders via the wallet address they used to participate in CAE/LBP. These token holders will be able to see their MNT balance on the Minterest dashboard. They do not need to take any actions before they start earning rewards from the buyback bootstrapping pool.
All the MNT tokens available on the protocol will be locked during the beta launch. Tokens are automatically staked and rewards for the respective addresses will be loyalty-boosted. No withdrawal of MNT will be enabled in any form during beta launch.
MNT token holders can log in with their MetaMask wallet and view their holdings, as well as their staking rewards. The tokens, however, cannot be manually staked or unstaked. Certain whitelisted wallets will be able to lend on the protocol, earn MNT emissions, and limited borrowing will also be allowed.
The vesting clock starts for all those who hold tokens subject to a vesting period as per the agreements. However, the tokens will be locked and no withdrawal of MNT tokens will be enabled during the beta launch.
Closing Thoughts
We are delighted to have reached this stage of development with such amazing support from the Minterest community. We’re looking forward to your participation in the Beta phase of the project!
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to participating platform users. This way, users get protocol rewards on top of industry-leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses to users.
The DeFi space comprises several verticals, and lending is perhaps the most important one. This guide will help to give you a grasp of the core ideas behind DeFi lending, what makes it so important and why Minterest is set to raise the bar in this rapidly growing area of finance.
DeFi Lending vs. Traditional Lending
To get a clear view of why the adoption of DeFi is growing at such a pace, we need to understand the benefits it offers over traditional lending. A loan is a financial tool that’s available in both the traditional and crypto financial ecosystem, DeFi loans however, are substantially different in nature than those issued by banks.
When an individual wants to borrow money from a traditional bank, they have to go through an array of checks and meet a set of criteria imposed by the bank to qualify for a loan. The process can take over a week and an approval is not always secured. In contrast, an individual looking to borrow from a DeFi protocol only has to meet one requirement – they need enough crypto assets to overcollateralise their loan, and the transaction can be completed in minutes. Additionally, the fees for a short-term loan in traditional banks are very high compared to a DeFi loan.
Instead of the loan funds being deposited into your account by a bank, a loan on a DeFi protocol is provided by users who have staked their crypto, and in return for this, they enjoy an annual percentage yield (APY).
The ease and cost of acquiring a loan on a DeFi protocol is why the DeFi industry has seen such explosive growth in the last 2 years, with $50.63 billion in total value locked.
Why DeFi loans are attractive
A trader can increase their holdings in their portfolio without affecting other assets.
Interest rates for the borrowers are lower than those offered by traditional financial institutions.
There are significantly higher APYs on the supply side for lenders.
The fees are lower for borrowers
DeFi users can leverage lending to provide more liquidity for complex staking and yield farming strategies.
The Challenges Facing DeFi’s incumbent lending protocols
Currently, there are 142 lending protocols distributed across several blockchains. The borrowing volume has soared 58.36% since the last year — from $16.69 billion in May 2021 to $26.43 billion today. However, DeFi lending in its current form is far from being perfect, as the industry faces some critical pain points.
External liquidators
External liquidators are third-party actors that earn fees for undertaking the buy-out of under-collateralised loans at discounts to market rates. The participation of external liquidators helps maintain the overall solvency of the protocol.
The Maker protocol, one of the first stable coin issuers, first introduced the practice of third-party liquidation. Any user could participate in an incentive-driven auction to bid for the liquidation. Many protocols followed the same processes, resulting in a substantial loss of value for users.
Lack of Risk Assessment Tools
Regardless of the platform, users need a way to structure products which can help offset or mitigate risk factors related to DeFi lending.
Risk management is essential, but existing protocols do not provide tools to analyze and mitigate risks. As a result, many borrowers suffer auto-liquidations, which could have been avoided with a simple analysis of their collateral and a timely reaction.
No Value Accrual from the Protocol
Some DeFi protocols are extraordinarily effective and have large TVL within their ecosystems. However, their token value is not correlated with the rising TVL because third parties remove the value generated within the protocol.
Such protocols lose the lion’s share in liquidation and interest fees generated, and this affects the token’s price.
Standard Emissions & Linear Rewards Structure
DeFi protocols issue native tokens and incentivise users with emission rewards for providing liquidity. The same tokens are used to encourage borrowing activity and these two activities shape any DeFi protocol’s APY.
However, existing DeFi protocols do not correlate lending liquidity, borrowing, and the native platform token. This results in APY lowering over time, as the number of users grows.
Minterest’s Innovations
Minterest has identified existing DeFi lending challenges and has built a next-generation protocol that solves the issues highlighted above.
Auto-liquidation Feature
Minterest has built its own on-chain liquidation process. This feature retains up to 40% of the protocol value usually lost by other DeFi protocols.
The on-chain Treasury captures 100% of the interest rate fees and auto liquidation fees and then passes these rewards back to the users. This process boosts the total APY for all users.
Risk Assessment Tools
Minterest users will have access to an intuitive set of risk assessment tools on the Minterest Dashboard which will assist them to identify common DeFi lending risks and take action to mitigate them. Users can track data related to their positions in the protocol and activate liquidation reminders, and get notifications via Telegram, Discord, or email. This means users may significantly minimize the risk of being liquidated.
Value Accrual & Buyback
All the interest and on-chain liquidation fees are collected by the Minterest Treasury which buys back MNT tokens from the market and distributes them back to token holders. Such action generates a strong flywheel effect, as more users want to bring extra supply on-board, get more powerful buyback, and earn higher yields. Moreover, the Minterest emission structure incentivises users to adopt a long term strategy through extra rewards for loyalty.
Emission Structure
Unlike other DeFi protocols that only focus on liquidity-based incentives and borrowing, Minterest uses a special emission structure that is allocated via three buckets.
Standard Emission: 30M MNT tokens (60%) of the total Emissions Rewards pool is allocated equally over 5 years to liquidity providers who lend and borrow.
Boost Emission: 15M MNT tokens (30%) of the total Emissions Rewards pool is the maximum possible allocation over 5 years to liquidity providers who hold Minterest NFTs. Boost Emission is issued in proportion to Emission Rewards, i.e. an NFT with a 30% boost in emission results in the user receiving a 30% boost in their specific amount of Emission Rewards.
Buyback Emission: 5M MNT tokens (10%) of the total Emissions Rewards pool is the maximum possible allocation over 5 years to bootstrap the Buyback process. The Buyback Emission pool acts as a short-term subsidy of the protocol’s Buyback process, incentivising early staking of MNT tokens in supporting a more attractive APY from launch, than it would have otherwise been the case.
Conclusion
The adoption of DeFi lending protocols will continue to grow, especially as more crypto enthusiasts enter the market and provide the network effect that will, and is, driving the market. As liquidity grows, so will opportunities for market participants who traditionally use more passive assets to balance their investment strategies. Minterest and its unique features like auto-liquidation, buyback, and emission structure stand at the forefront of a vast, DeFi lending market.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to participating platform users. This way, users get protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses to users.
Shortly after successfully completing our first smart contract security audit carried out by Trail of Bits, Minterest is delighted to announce the completion of a second security audit by Hacken, a leading security consulting company that focuses on blockchain security.
The full audit report is now public and available on our website.
Why Security Matters
When making a decision to place your funds in a DeFi protocol, or for that matter, when you make any transaction that involves handing over your money to an institution or third party, security and safety of funds is one of the most important considerations. As the total value locked (TVL) within the DeFi sector climbs to all-time highs – with the latest peak surpassing $240 billion – the risk of potential exploitation is an increasing concern on DeFi protocols. In particular, code exploits are a common vector of attack, so smart contract security is front of mind for any Defi protocol.The industry has significantly stepped up measures to protect funds by employing more rigorous external and internal code audits and overall platform security processes.
Minterest views security as its top priority, which is why we have hired several top-level security companies to review our entire development process. We commissioned Trail of Bits and Hacken to ensure that our code meets the most stringent standards of code security.
What’s Inside the Hacken Report?
The smart contract security audit was performed with several methodologies in mind, namely:
Architecture Review
Functional Testing
Computer-Aided
Verification
Manual Review.
Minterest scored a 10 out of 10 for both documentation and architecture quality. In the initial audit, security engineers found 2 high, 4 medium, and 4 low severity issues. These issues were quickly resolved by the team during the second audit. The security score after the second audit was 10 out of 10.
Here is a breakdown of issues found by the Hacken team pertaining to four different severity levels.
Critical
Security engineers found no critical issues whatsoever.
High
Insufficient vesting balance – The audit has shown that the “Vesting.sol” contract’s code validated that there are enough tokens only for every single vesting. However, there was no validation verifying that the contract balance was enough to fulfil all those vesting records. The contract did not guarantee that all users would receive their funds.
Status: Fixed
Unrestricted function access – The function “updateBorrowIndexesHistory” from the “EmmisionBooster.sol” contract could be called by anyone, which could lead to an undesired contract state.
Status: Fixed
Medium
Missing events emitting – “MemberAdded” events from the “Whitelist.sol” contract were not emitted in the constructor when new addresses were whitelisted. If there was some off-chain logic that depended on the “MemberAdded” event, it could have worked incorrectly.
Status: Fixed
Redundant modifiers – The contract “MToken.sol” has redundant “nonReentrant” modifiers. As soon as no external calls are performed, “nonReentrant” modifier is redundant.
Status: Acknowledged
TODO notices – The code contained a lot of ‘TODO’ notices. This could indicate that the code was not finalised.
Status: Fixed
Costly loops – The code in the contract “EmmisionBooster.sol” did not allow emission boost enabling for different markets in batches and processed everything in a single call. The function could fail if the number of the markets returned by “supervisor.getAllMarkets()” was big enough.
Status: Mitigated
Low
The contract can be declared as abstract – The contract “SupervisorV1Storage.sol” had some functions that should be implemented and never used separately.
Status: Fixed
Misleading naming – The function name “redeemAllowedInternal” in the contract “Supervisor.sol” said that it redeems something. However, it’s a simple view function used for validation purposes.
Status: Fixed
Redundant addition – Adding 30 seconds for the current timestamp in functions “swapTokensForExactTokens, swapExactTokensForTokens” in contract “DeadDrop.sol” is redundant because the swap will be performed during the same call and using “block.timestamp” as the deadline is enough.
Summary
Minterest cares about security, after passing the second security audit with no issues, we are pleased to be delivering a fully-operational platform that you can trust to securely hold your funds.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to participating platform users. This way, users get protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses to users.
The recent Senior Mintrepreneurs exclusive Discord channel launch generated some great questions. They were really insightful and relevant for the community. So much so, that we decided to make this week all about FAQs.
Join us for an informative and interesting Q&A event and get a chance to win Minterest NFTs, which grant you private launch access and a significant APY boost!
Participate in Minterest’s FAQ Week activities to win one of 3 Minterest Next Level NFTs
All Minteresters can ask their protocol-related question on Twitter and win a Next Level Minterest NFT.
Kyn Chaturvedi stars in Minterest’s AMA session this Friday. He will choose and announce the winners on Twitter Spaces to wrap up the FAQ Week.
General Chat Tweets
Can you help us to add new questions to our FAQs? Your valuable insights will help everyone understand Minterest a little better.
In return, Minteresters will have a chance to earn a Minterest Next Level NFT and join the private launch. The rules are simple:
Post your question (only one question per user) on Twitter. Make sure to use the #MINTERESTFAQ and #ASKKYN tags, so we can spot your questions and pick the winners
Join us on Twitter Spaces this Friday to get the results. The best community question wins a Minterest Next Level NFT and gets a chance to be included in Minterest’s FAQ section
You can check the Minterest whitepaper and blog to generate your questions.
Twitter Spaces Friday
Minterest’s popular COO, Kyn Chaturvedi will be selecting the best questions from those left under the Twitter post. Winners will be announced during Twitter Spaces this Friday. The winners of the Next Level NFT will be chosen from:
General Channel Tweets. The best question wins Minterest Next Level NFT
SenMin Channel Activity. The best rephrasing of an answer from Friday’s SenMin Party wins Minterest Next Level NFT
Live Q&A during the Twitter Spaces. The best live question wins Minterest Next Level NFT
All your questions have a chance to be officially listed in Minterest’s FAQ section.
Join us on Twitter Spaces this Friday and let the questions begin!
What is Minterest?
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to participating platform users. This way, users get protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses to users.
Dear community, protecting the interests of users will always be an integral part of the Minterest protocol, so this post is a sneak preview of what’s to come once the protocol goes live. Here, we will discuss risk assessment tools that provide refined strategies in a convenient format to make lending/borrowing risks more transparent.
Risk Analysis: Why is it important?
One of the most significant risks when using any DeFi lending protocol is the risk of liquidation, which occurs when a loan becomes insufficiently collateralised, i.e., when a user’s collateral value falls below a given threshold. Liquidation is a highly unfavourable outcome for borrowers because their positions are reduced, resulting in losses.
All loan positions in the Minterest protocol are over-collateralised, meaning that the collateral value is greater than the amount borrowed. If market movements result in an under-collateralised loan position, a users collateral gets liquidated to repay the loan in a critical situation. Such a situation occurs if the Collateral Ratio, which is the ratio between the borrowed loan amount and the supplied collateral, is greater than the allowed proportion for the user’s lent assets.
Liquidation is one of the significant risks of leverage in any position, at the time of borrowing. Due to the volatility of many cryptocurrencies, liquidations occur regularly in DeFi.
That’s why the Minterest protocol offers risk analysis tools; they ensure users have more insight over their positions.
Risk Analysis Tools Walk-through
The Minterest Labs team is working to build the best lending/borrowing platform in the DeFi space. Part of this involves a Portfolio Dashboard to give users a clear overview of their positions on Minterest. Even though the dashboard has many attributes, we will focus on three main risk assessment features our users can access.
Feature #1: Notifications
Users want to make the most of a DeFi protocol, taking leveraged loans without excessive risk of being liquidated. The main reason behind any liquidation is a lack of sufficient collateral, which happens when users don’t pay enough attention to their collateral ratio. However, with notifications, users can more easily be aware of any changes in their risk profile due to market movements.
The Minterest notifications feature is designed to help users reduce the risk of being liquidated while also saving them time. In addition, notifications can remind users when they need to participate in protocol governance. Users can set notification alerts in two ways — via e-mail or Telegram. Custom notifications will let them stay ahead of the game whenever their attention is required.
Imagine if a user set up a Liquidation Risk Alert and their risk on collateral changed significantly. Timely notification would allow them to increase their collateral ratio to avoid liquidation or take other reasonable steps to preserve capital.
Feature #2: Collateral Ratio Gauge
The Collateral Ratio Gauge feature is like a forward-looking radar that estimates the collateral ratio that will result if the user takes a lend or borrow action, before they take that action. For example, if a user wants to open a position but the challenge is that they don’t know how a new position will impact their portfolio. Instead of taking chances, they can use the collateral ratio gauge tool before making a decision. It will display how their collateral ratio may change depending on the position they want to open.
Feature #3: Liquidation Risk Gauge
The Liquidation Risk Gauge is another feature, it works like a forward-looking radar, an index estimating the probability that a user will have a liquidation event over the course of the next year. The Liquidation Risk Gauge is based on the user’s current portfolio, using the prior year’s market movement data for the assets utilised, to calculate the probability for a potential liquidation event in the user’s portfolio. The user can see this Risk Gauge before they take any lend or borrow action, helping them to “look forward” and anticipate how their portfolio could be impacted by typical market movements.
Feature #4: Portfolio Back-test Risk Analysis
Using a Portfolio Back-test methodology, Minterest users will also be able to see how their current portfolio would have fared through the market movements of the past year, giving a useful indication of how it might fare in the coming year, helping users to make solid and informed decisions. Historical back-test portfolio analysis is a unique feature not available elsewhere in DeFi.
Join our Twitter Spaces on Friday, Apr 22 with our CPO David Esser to learn more about our risk analysis tools.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to participating platform users. This way, users get protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses to users.
DeFi is now multi-chain, and both Moonbeam and Ethereum are priority networks in Minterest’s roadmap. Following Minterest’s highly successful LBP which closed with a fully diluted valuation exceeding 500 million dollars, significant market feedback has supported the proposition of prioritising Ethereum as the protocol’s launch network, with Moonbeam and other EVM compatible networks occurring later.
A recent strategic review, in conjunction with advisors, liquidity providers and project investors, has resulted in strong support for this direction, so Minterest is now prioritising Ethereum for its initial launch phases.
By launching on Ethereum first, Minterest will have access to greater launch liquidity which will fast track its multi-chain strategy. The ability to attract substantial initial liquidity on Ethereum, supports the accelerated build-out of liquidity on other EVM compliant networks like Moonbeam. It’s a pathway already successfully demonstrated by numerous other protocols.
Last year, the protocol’s underlying technology stack was redesigned, switching from Substrate to Solidity. This provided the protocol with the greatest possible flexibility in its launch options, and by doing so, it has allowed for this current re- prioritisation in the protocol’s multi-chain roadmap.
There are no changes in user features or with on chain liquidations and the protocol’s automated buyback rewarding governance participation. Minterest NFTs, are all proceeding as detailed in the project’s whitepaper. This will also be the case for other EVM networks like Moonbeam, as Minterest implements its multi-chain roadmap.
Minor amendments to the protocol’s economy, to allow for Ethereum gas pricing, are already underway and will not materially impact the updated launch schedule.
Consistent with Minterest’s commitment to make DeFi accessible for all users, $100 of MNT tokens will be allocated to each wallet used in the Minterest Community Allocation Event, to ensure smaller participants are not adversely affected by Ethereum gas prices. MNT will be priced at $3.21, equivalent to the lowest average price of Minterest’s LBP event.
As stated, the war in Ukraine has had an impact on Minterest’s launch schedule and a new launch date will be announced imminently.
Dear Minteresters, we are pleased to announce the results of Quiz #1 held from April 4 to 6.
A Quick Background
Minterest Labs revealed the exclusive Senior Mintrepreneurs Discord channel launch this week. Any community member can join the channel by scoring > 80% in all three quizzes we conduct.
Looking for reasons to join the Senior Mintrepreneurs Club? Check out our detailed blog post to learn about all the benefits Minterest’s inner circle enjoys.
Quiz #1 Results
Quiz #1 was officially launched on April 4 and our community had a chance to participate until 10:00 PM UTC on April 6.
The results are out! Please check your emails and Discord level. If you’re not on our Discord already, please join here.
If you didn’t receive an email or a discord message, don’t get discouraged, these contests are just a stepping stone to help you learn more about the Minterest protocol. You can still take Quiz #2 and #3 to get special tags on the Minterest public Discord channel.
If you missed the mark on this one, you’ll have the opportunity to enter many more in the future, including the upcoming Community Education Event.
Next Steps Towards Becoming a Senior Mintrepreneur
We hope that you enjoyed participating! If you received an email, you’re officially 1/3 of your way to joining our exclusive Discord channel. Don’t forget to take Quiz #2 on Thursday and Quiz #3 next Monday, to get early access to Minterest merch, news, special events and NFT drops.
Dear Minteresters, we’re happy to announce that you can now join our exclusive Senior Mintrepreneurs Discord channel for a behind-the-scenes look at the project’s development, NFT drops and stay up to date with the latest news.
TL;DR
The exclusive Senior Mintrepreneurs Channel provides you with access to NFT drops, Minterest merch, channel member announcements and events.
Complete Minterest quizzes on April 4, 7, and 13. Correctly answer 80% or more of the questions and complete all three quizzes to get the exclusive Senior Mintrepreneurs Channel invitation.
What Is The Exclusive Senior Mintrepreneurs Channel?
The Exclusive Senior Mintrepreneurs Channel is a Discord channel for the most engaged, informed & dedicated community members.
Why Join The Exclusive Senior Mintrepreneurs Channel?
The Senior Mintrepreneurs Channel membership gives you:
Access to Minterest merch
Minterest APY boosting NFT drops
Exclusive sneak peeks of what we’re working on
First-hand news and events related to Minterest
How To Join The Exclusive Senior Mintrepreneurs Channel?
Minterest Ambassadors and Quizmeisters on Discord are automatically added to the Channel. If you haven’t participated in the Minterest DC quizzes yet, you may join the exclusive Senior Mintrepreneurs Channel this week by taking quizzes.
04.22 UPDATE: Due to significant market support to prioritise Ethereum as the protocol’s launch network, we are launching on Ethereum first and will launch on Moonbeam later.
Thank you BuyNoEvil (Minterest ambassador) for giving us an initial idea for this blog post.
The Minterest protocol recently concluded a $5.52M LBP token allocation event on Copper. Although the event was mainly designed for large participant, smaller participants also supported the LBP. This article will help you find answers to the most frequently asked questions related to the Minterest LBP token event.
This article will help you find answers to the most frequently asked questions related to the Minterest LBP token event.
Where can I track my investment and NFT level?
You can use the Minterest LBP dashboard to track your investment and NFT level. You can connect your Metamask wallet on the dashboard to see how many MNT tokens you have, their total value, and your current NFT level.
Did I win a Next Level NFT during the LBP?
To check whether you have won an NFT, you can go to the Minterest LBP dashboardand connect your Metamask wallet. Your NFT level will be displayed under ‘Your Status’ window on the right-hand side of the screen.
NFTs were allocated during the LBP event depending on how much each participant contributed. Your NFT level depends on your position relative to other LBP participants on the leaderboard.
When and where will I receive my NFT?
All the NFTs will be released after the TGE by the end of Q1 2022 during the private launch of the protocol. The Minterest NFT collection will also be tradeable on NFTrade, the upcoming multi-chain NFT marketplace on Moonbeam. More information about the Minterest and NFTrade collaboration can be found here.
AMA/Telegram/Discord/Twitter
If you win an NFT during an AMA or on social media, you will receive all further instructions on how to obtain your NFT. We will never ask you to transfer funds, nor will we ask you for private information such as your Metamask wallet password or seed phrase.
If you won an NFT during the LBP, you don’t have to take any further actions. The NFT will automatically be transferred to your Metamask wallet on the Moonbeam network during the Token Generation Event in Q1 2022.
When will the private launch of the Minterest Protocol take place?
Minterest protocol will be launched by the end of Q1 2022. The exact date will be announced a little later on our Twitter, Telegram, and Discord.
Once again, we wish to thank and congratulate all CAE and LBP participants, supporters, and community members. We couldn’t have done this without you! We are looking forward to what the future has in store for Minterest.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users get protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation surpluses with users.
04.22 UPDATE: Due to significant market support to prioritise Ethereum as the protocol’s launch network, we are launching on Ethereum first and will launch on Moonbeam later.
Thank you BuyNoEvil (Minterest ambassador) for giving us an initial idea for this blog post.
Minterest had an extremely successful community allocation event, and we appreciate all the CAE participants and project supporters that made this possible.
This post aims to address all the frequently asked questions from the community and some of the uncertainties regarding what happens after the CAE, and what they can expect in the near future.
How many MNT tokens will I receive?
All CAE participants were limited to deposits between $100 and $500, with Minterest guaranteeing them the lowest average LBP price.
After a successful LBP, we are happy to announce that the lowest average price of MNT is $3.21 – meaning that all CAE participants will get their MNT at this price. As a reference, the LBP started with an initial price of $5.88 and ended at an average price of $5.29 per MNT.
All community allocation event participants will receive an email with clear instructions on how to claim their funds.
When and where can I access my tokens?
The tokens obtained by CAE participation will have to be claimed on the Moonbeam network at the Token Generation Event (TGE) which is scheduled at the end of Q1 2022.
Did I win a NextLevel NFT?
The lottery draw for the 85 NextLevel NFTs across levels 4 and 12 will take place and be announced on 15th of February 2022.
Minterest will notify all the winners via email, so keep an eye on your inbox!
When will I receive the NFT I won participating in Telegram/Discord/Twitter or an AMA?
Those who have won an NFT through an AMA, Telegram, Discord, or Twitter, will be notified by Minterest team members. Make sure that you have provided your Telegram and Twitter handles, as well as your email address as per the instructions.
Your NFT reward will be airdropped at the time of TGE to your MetaMask wallet on the Moonbeam network.
When and where will Minterest launch?
Minterest is expected to have a private launch soon by the end of Q1 2022.
Once again, we wish to thank and congratulate all CAE and LBP participants, supporters, and community members. We couldn’t have done this without you! We are looking forward to what the future has in store for Minterest.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation surpluses with users
The token event was conducted via an LBP (Liquidity Bootstrapping Pool) on Copper, ensuring the most equitable form of token allocation possible, in-line with Minterest’s core principle of making DeFi fairer
Tallinn, Estonia – 14 February 2022 — Minterest, a value-capturing lending and borrowing protocol designed to make DeFi fairer for users, has closed $5.52 million USD in a LBP token event. Following this event, and less than one and a half years since its inception, Minterest’s fully diluted valuation stands at $514M. Leading the charge, Minterest is set to introduce its DeFi 2.0 model, with greater capital efficiency and a fairer incentive structure. The LBP was the first step towards the launch of the Minterest protocol which is expected by the end of Q1 2022.
An LBP is a tried and tested approach that allows for unrestricted access to token distribution, allowing the market to determine the fair price of any crypto asset during the course of the event itself. This way, results are completely determined by supply and demand dynamics occurring within the LBP itself and over which individuals have little or no influence on the price.
The Minterest LBP saw participation from a number of renowned funds, including DigiStrats, LucidBlue Ventures, DFG, and others. The LBP token event was held on Copper, ensuring the most equitable form of token distribution possible, in-line with Minterest’s core principle of making DeFi fairer.
JR, Founder of Minterest, said, “At any time, Minterest’s LBP result would be regarded as strong, but that Minterest has received a $514M fully diluted valuation in today’s climate, prior to launch, is an indelible sign of the immense opportunity and potential it brings to the market. It reflects the protocol’s ability to fulfil its mandate, to take a dominant position in DeFi by maximising value to its users in a fair and equitable way, and we could not be more excited to bring this to the market very soon.”
He concluded, “The success of the LBP underscores the fact that DeFi markets are maturing rapidly, with billions of Total Value Locked (TVL) pouring into the ecosystem. Users are demanding more inclusivity and our LBP reflects this. The strong support and interest from the community is truly incredible. By choosing the route of an LBP to fund the protocol’s treasury as opposed to more common practises, Minterest is setting the standard for fairness and inclusion in DeFi 2.0.”
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation surpluses with users.
04.22 UPDATE: Due to significant market support to prioritise Ethereum as the protocol’s launch network, we are launching on Ethereum first and will launch on Moonbeam later.
Minterest is delighted to announce that the Minterest Next Level NFT collection will be tradeable on NFTrade, the upcoming multi-chain NFT marketplace on Moonbeam.
NFTrade is the first cross-chain and blockchain-agnostic NFT platform. The project is an aggregator of all NFT marketplaces and hosts the complete NFT lifecycle, allowing anyone to seamlessly create, obtain, sell, swap, farm, and leverage NFTs across different blockchains.
How does it all work?
The Minterest Next Level NFTs will be air-dropped to winners’ wallets just prior to Minterest’s private launch at the end of March 2022. Holders of the NFTs will then be able to trade them on the NFTrade marketplace on the day of our TGE (end Q1 2022).
This is great news for users seeking access to the protocol’s private launch, but do not have an NFT. An NFT is essential in order to access the protocol’s super-high bootstrapped emissions until Minterest’s private launch in March 2022. You can calculate the emission rewards here: Minterest Yield Calculator.
Those participants who want the massive APY boost but didn’t get a high tier can acquire one from NFTrade marketplace. All Minterest Next Level NFTs will be tradable after the TGE as soon as NFTrade platform goes live on Moonbeam. Sellers can then list their NFTs after the TGE and start receiving bids from potential participants after setting up a 24 hour auction.
Sign up for the whitelisting and join our Telegram and Discord channels to become a part of our growing community!
What is Minterest?
Minterest is a DeFi lending and borrowing protocol operating its own on-chain liquidation and buyback mechanisms. The protocol automatically passes on the value it captures from interest rate, flash loan and liquidation fees to users. It does this via MNT tokens that it acquires on-market, ensuring highest long-term yields.
Minterest dashboard for a user-friendly experience
We created a user-friendly Minterest dashboard for a simple and transparent experience to track investment, NFT level, and the real-time changes in the price.
Minterest is a ground-breaking lending protocol built by industry leaders to challenge existing DeFi incumbents and service billions in liquidity by providing its users the highest long-term yield in DeFi.
The Minterest protocol introduces DeFi 2.0; bringing more capital efficiency that allows users to access decentralised token money markets and passes on 100% of the rewards generated to its community of active participants.
The Minterest protocol will be launching it’s only public offering starting from 8th of February 2022 – the LBP token event on Copper. The process of participating in the Minterest LBP token event is explained in this short guide.
Before we proceed, please check out these resources to learn more about our LBP token event:
UPDATE: MNT tokens acquired through the LBP are the only ones without a lockup. All other parties are subject to a minimum block by block vesting of 1 year, making the LBP participants the only ones able to participate in MNT or LP staking.
Minterest LBP Token Event
The Minterest LBP token event is the first public offering of MNT tokens, and the only opportunity for the community to secure an allocation in the public offering prior to product launch.
The LBP on Copper is set up with the following metrics:
Where: Minterest.com LBP Pools: Copper Start: 08th of February 2022 – 2 pm GMT End: 10th of February 2022 – 2 pm GMT MNT Max Supply: 2,500,000 MNT (2.5% total supply) LBP Base Pair: USDC/MNT Initial MNT liquidity provided: 2,500,000 MNT Initial USDC liquidity provided: 300,000 USDC LBP Weights: Starting at 98/2 and will gradually adjust to 50/50 LBP Starting price: 5.88 USDC
If this is your first time participating in an LBP on Copper, the first thing you need is to set up an Ethereum wallet. Copper supports two popular Ethereum wallets: MetaMask and Gnosis. For the purpose of this guide, we will be using the popular MetaMask wallet.
MetaMask wallet can be used as a browser extension, or it can be downloaded as a mobile wallet on both Android or iOS. However, in order to participate in the LBP on Copper, you’ll need a browser extension that you can download from here.
2. Get ETH and ERC20 USDC
To participate in the LBP token event, you will need ERC20 USDC tokens to exchange for MNT, and ETH to fund the gas fee for the transaction. Please use your preferred CEX or DEX to acquire USDC and ETH. You can acquire both on major exchanges such as Binance, Coinbase, FTX, or Kucoin etc, and transfer them to the MetaMask wallet you just created. It is recommended to do this step in advance as some CEXes process the first withdrawal within 12-48 hours.
Please make sure you have some ETH in your MetaMask wallet to fund the gas fees on the network and avoid failed transactions due to insufficient funds. To estimate the gas fees for a token swap, please have a look at the swap fees for Uniswap here. You should always have slightly more ETH in your wallet (more than your estimate) because the gas fees depend on network congestion and the smart contract you’re interacting with.
3. Connect your wallet
Once you have ETH and USDC ready in your MetaMask wallet, go to Copper and select ‘Connect Wallet’ from the top right corner and choose MetaMask.
Note: Minterest or Copper will never ask for your private key or seed phrase.
4. Participate in the LBP token event
When the MetaMask wallet is successfully connected, you can participate in the LBP.
Note: Please keep in mind that trading ERC20 tokens (such as USDC or MNT) on Copper requires two separate transactions: In the first transaction, you give Copper approval to withdraw USDC from your wallet and the actual swap happens in the second transaction.
4.1 Approve USDC usage
To approve the usage of USDC, simply click on ‘Approve USDC usage’ and the MetaMask browser extension will ask for the permission to confirm the approval request transaction. This approval transaction (once completed) will incur a small amount of gas fees depending on the network congestion at the time (anywhere between $10 – $20).
4.2 Acquire MNT
Once the approval request for the usage of USDC by the pool contract is completed, you can input the amount of USDC you would like to swap into the field and Copper will estimate the amount of MNT tokens you will receive.
Please note that the value of MNT can change quickly during the LBP and is reflected real-time on the chart and in the input field box.
If you wish to proceed with the token allocation, click on ‘Get MNT’ and your MetaMask browser wallet will ask for confirmation along with the estimated gas fees for the swap transaction. After you confirm the transaction, you’ll see a success message on the screen.
After the success message, the transaction will be available under the ‘History’ tab of the event, and you’ll be able to see your current MNT balance in the swap window.
To learn more about the Minterest LBP token event, join our dedicated Discord channel where we publish regular updates.
4.3 Minterest dashboard for a user-friendly experience
LBP participants will have access to a user-friendly Minterest dashboard for a simple and transparent experience, hosting an overview and a leaderboard detailing live the USDC spent by various participants in the LBP. They can also track their invested amount and NFT level, along with the real-time changes in the price.
Minterest is a decentralised lending protocol. It comes with a unique economic model where the protocol itself captures 100% of the value it creates from interest income, flash loan fees, and auto-liquidation fees which it distributes to its users in return for their active participation in governance.
This blog post will be the source of information to keep track of all the lottery winners and goodies giveaway, including the lotteries that have been concluded till date.
A few weeks ago we announced to you that we are postponing the Minterest Community Allocation Event (CAE). All CAE participants from the Minterest community spent time, effort, and capital so it is only fair that we thank you in return.
All the supporters who successfully deposited their funds in our previous CAE earned an extra 5 NFT “APY Boost” lottery tickets. Our team went live on Telegram every day from 13th to 18th of December and randomly picked the winning four names and described the NFTs that will be awarded.
Here are the winners of Minterest’s CAE “Thank You” Lottery week, which ran from 13th to 18th of December.
Winners will automatically receive the respective NFTs in their Whitelisted wallets after Minterest launches.
Date of Activity
Level Awarded
TW handle
13-Dec-21
7
@rkeinwold
13-Dec-21
7
@Rv13A
13-Dec-21
7
@squeekie1
14-Dec-21
8
@Donutz_p
14-Dec-21
8
@BeeCeehh
14-Dec-21
8
@Alex5_56
14-Dec-21
8
@AomoiThetan
15-Dec-21
9
@IceFrosTv2
15-Dec-21
9
@__Django__
15-Dec-21
9
@Shukazavr
15-Dec-21
9
@autonomyyy
16-Dec-21
10
@Kuljira29557299
16-Dec-21
10
@LucarioRauld
16-Dec-21
10
@coin_zefa
16-Dec-21
10
@you425you
17-Dec-21
10
@sora0167
17-Dec-21
10
@wallaceplayfrog
17-Dec-21
10
@C120M1
17-Dec-21
10
@Baotruong210794
17-Dec-21
11
@Vlad50372221
10-Jan-22
11
@andyfairweather
10-Jan-22
5
@Will64174363
10-Jan-22
10
@Ton_Gans
21-Jan-22
12
@SamsunG_3971
21-Jan-22
11
@winner_winner_8
21-Jan-22
10
@blakk00
26-Jan-22
12
@rynardt_olivier
26-Jan-22
11
@My_Father_is_ Apst_johnson _suleman
26-Jan-22
10
@xiaohuli112
21-Jan-22
11
@BuyNoEvil
21-Jan-22
12
@Maxverleye8
21-Jan-22
11
@TerraMarllo
21-Jan-22
12
@andyfairweather
21-Jan-22
11
@Celen_Dhyll
11-Jan-22
12
@apestudies
11-Jan-22
11
@siranop4
11-Jan-22
12
@33_boogie
28-Jan-22
12
@qqqqqzd
28-Jan-22
12
@pansgraphy
28-Jan-22
12
@alamsya15372517
28-Jan-22
11
@Hopeluck
28-Jan-22
11
@usyksttw
28-Jan-22
11
@Algojali
28-Jan-22
11
@llrioll
10 Jan – 3 Feb
10
@kobel_maria
10 Jan – 3 Feb
10
@_Glaidor_
10 Jan – 3 Feb
10
@you425you
10 Jan – 3 Feb
10
@YUa0Y3cxFRdESDT
10 Jan – 3 Feb
10
@TerraMarllo
10 Jan – 3 Feb
10
@Mirror_73
10 Jan – 3 Feb
10
@cjk20636
10 Jan – 3 Feb
10
@hilzero1
10 Jan – 3 Feb
10
@luckygirlwowow
10 Jan – 3 Feb
10
@FantasyPolka
8 Feb-2022
11
@BuyNoEvil
NFT APY Boost Lottery Winners
Below are the NFT APY Boost lottery winners announced on Feb 15th 2022
Twitter handle
Last 5 characters of wallet ID
Levels awarded
MalisDima
81DDD
12
edervr84
E00eF
12
1F28d
12
ojofirme
4b552
12
JeongSunKim3
7756F
12
hangome_sol
78d59
12
DD2007Z
fa897
12
AlexandrBelyan1
d0Cd6
12
Yois32015394
2213E
12
okay_k__
90c46
12
@kokomploker
567Cf
11
you425you
30 e40
11
FFjQheaZweYXVGN
46AEc
11
cryptoice2
74B42
11
LaDucHoan
83c6c
11
JackyHa36068678
708Ef
11
46C12
11
Hamsal1
A9C0b
11
@xemo89
F9595
11
renwirya
1EE11
11
Below are the NFT APY Boost lottery winners announced on Feb 16th 2022
Twitter handle
Last 5 characters of wallet ID
Levels awarded
KryptoManiaK400
3f886
12
1cF6C
12
ALatyp
1c702
12
NhanAres
d31Db
12
erncrest82
eE093
12
ef314
12
shekharmishra51
B7f4a
12
balevser
9c340
12
pontashiki
be57e
12
@keimabi
9A838
12
ncatalinpop
5CC93
12
@kobel_maria
C4340
12
kittipooh_
c094f
12
icx100
80A3D
12
51F2C
12
Thanach40713989
D511D
11
@MarianaUdroiu
adCcB
11
bothu123
bE520
11
wook6850
FFA55
11
blitzlabsPat
420da
11
e32BF
11
@Mr_Slicey
2bC2b
11
@avasilyevv
6DDC7
11
I_am_KRiCH
866c7
11
yesmola0704
1175E
11
Below are the NFT APY Boost lottery winners announced on Feb 17th 2022
Twitter handle
Last 5 characters of wallet ID
Levels awarded
@KohlrabiLike
16051
10
@JohnnyM42758084
0D556
10
@otto_artena9
ae30d
10
40eD0
10
@CruptoG
76B90
10
@johnnyhhhhhhhh
b1dB6
10
@LaDucHoan
83c6c
10
F41f8
10
@Peter_Yang97
314d7
10
@737709674Com
73aC4
10
51F2C
10
@Henryjhh_eth
67757
10
@Przemys56212944
65fC5
10
@MetaJay0
beF76
10
@glCVjvaDJDhgTwO
04214
10
865e1
9
F156d
9
@ichohan2002
8cd99
9
@damiddong
5A8f8
9
a4B57
9
@kennop91
c1A9a
9
@ice_wine_tea
9F32A
9
@itanishqgupta
aed9A
9
@ANDREI85432322
1f248
9
@GPayeer
84b0C
9
Below are the NFT APY Boost lottery winners announced on Feb 18th 2022
Twitter handle
Last 5 characters of wallet ID
Levels awarded
@cryptofan311
c021c
8
@NuiAC125
85090
8
@Mr_Crypto5
E3243
8
@joepurackal
21D2A
8
@mikededurable
A88A2
8
@sallytorilak
86A67
7
5D75e
7
091Ac
7
@kbnoh6
6c001
7
@cos_pai
0026e
6
81463
6
@moonsik77
134A5
6
@coolstick7
df585
5
@9UFoTo5TQdv7NrE
50191
5
@CriptoCeelo
d0Bac
4
CAE and LBP Quiz Winners
Below are the CAE quiz winners
Serial Number
Discord ID
1
guardianangel73#5149
2
scoobygti#6158
3
tblaze#2311
4
eat10#2184
5
jesam84#4130
6
kajuvra77#5307
7
HUNO#0785
8
borand88#7866
9
BM#3453
10
Baldie9111#7598
Below are the LBP quiz winners
Serial Number
Discord ID
1
francesco#1023
2
Dautik#3241
3
quintets#3623
4
narcis93#7666
5
Grigore#5006
6
Princess Binnie#4127
7
bartek0210#5843
8
BeeFault#9337
9
SG_Crypto_Dad#0376
10
Name: Michael
Christmas NFT Giveaway
Below are the NFT Giveaway winners announced on Dec 22nd 2022
Serial Number
NFT Level
Wallet adress
1
Level 8
1411a
2
Level 8
6570e
3
Level 8
c88fa
4
Level 8
be520
5
Level 7
be2dd
6
Level 7
f03eb
7
Level 7
2a7c1
8
Level 6
48836
9
Level 6
3903b
10
Level 5
ed8b0
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation surpluses with users.
Minterest LBP: Become a Genesis participant in DeFi 2.0 DeFi is a $100B USD industry in it’s infancy, with a potential Trillion USD market size. While cryptocurrency prices display volatility, the value locked in DeFi shows a sharp increase. Based on this correlation, it seems that the DeFi industry could become a safe haven for participants in this alternative financial ecosystem. As DeFi expands and gains mass adoption, there is potential for it to significantly challenge the traditional collateral-based lending industry.
The launch of the Minterest protocol introduces DeFi 2.0, moving the industry a massive step forward. The protocol genesis will be initiated on the 8th of February 2022 by its only public offering – the LBP token event.
UPDATE: MNT tokens acquired through the LBP are the only ones without a lockup. All other parties are subject to a minimum block by block vesting of 1 year, making the LBP participants the only ones able to participate in MNT or LP staking.
Introducing the most revenue efficient protocol and its architecture
The Minterest protocol is up to 200% more capital efficient than the traditional top 3 DeFi lending solutions like Aave or Compound, while being just as secure. The protocol accomplishes this with two industry-first R&D innovations:
The on-chain Buyback: A treasury algorithm passing all protocol surplus to protocol users instead of the traditional 10-15%, maximizing Minterest user APY drastically.
The on-chain Liquidation Engine*: Up to 40% of protocol value is traditionally lost to liquidations because of 3rd parties conducting them off-chain. Minterest executes liquidations on-chain and captures all liquidation fees lost by other protocols, keeping hundreds of millions USD on-chain, increasing user APY.
If you want to learn more about the current and upcoming Minterest innovations, make sure to visit Minterest Docs, the Technology Paper, and our Discord.
Benefits of a DeFi 2.0 Genesis Investor
The LBP is the first public opportunity to invest, the first step in the protocol token launch. LBP Participants can expect an extraordinary APY in the high end of 3-figure and beyond based on 5 key factors:
To understand the potential value of the token driven by the industry-first Buyback Mechanism, let’s look at Compound. The protocol had a TVL of $0.5B and grew to a $15B valuation; 30 times growth! But what happened to the value of their token? It only rose by 2 times: from $160 to $320. All because the token value didn’t correlate with Compound’s TVL by design.
The Minterest protocol is the first protocol to link the value of it’s token to TVL. The Buyback automatically uses all protocol surplus to acquire the MNT tokens on the open market and distributes them to the protocol users, being the largest and most consistent buyer. Therefore, when the protocol moves from $100M in TVL during genesis to $10B in TVL, genesis investors who stake MNT can expect tremendous yield.
More TVL > more protocol surplus > more tokens returned to the protocol > more yield.
The NFTs hold tremendous value, unlocking APY boosts up to 50% for as long as three years. Considering 70% of Compound’s TVL is held by 20 wallets, you might conclude that for one of those holders, a 50% APY boost on all TVL deployed will translate into a significant 7-figure value add over years.
Minterest dashboard for a user-friendly experience
LBP participants will have access to a user-friendly Minterest dashboard for a simple and transparent experience, hosting an overview and a leaderboard detailing live the USDC contributed by various participants in the LBP. They can also track their amounts and NFT level, along with the real-time changes in the price.
Minterest NFT holders get exclusive access to the private liquidity mining event. The protocol’s private launch is scheduled for the end of Q1 2022. For one month, the protocol will only be accessible to participants who hold an NFT from the LBP, their entry ticket to the pre-mine phase.
Exclusive access to MNT and LP staking
The tokens acquired through the LBP are the only fully-vested tokens, all non-LBP tokens are locked for a minimum of 1 year in a block by block vesting schedule. This is a massive advantage since the LBP MNT tokens are instantly tradeable during the DEX launch and eligible for the LP staking program.
The other option is to stake the MNT LBP token in the Minterest protocol itself, earning all the Buyback rewards distributed to the limited number of stakers.
Both the liquidity mining and MNT/ LP staking together are designed to drive massive APYs at the high end of 3-figures and more for the LBP participants.
LBP – Frequently asked questions
Why do we hold an LBP token event?
The Minterest LBP is a response to increasing requests for access to MNT tokens. The mechanism protects our community from front-running by large accounts and bots, built to incentivize a fair distribution of tokens across the 2-day event duration instead of being sold out in no time. To learn more about the “why” and “how-to” Minterest LBP, please read the article here.
What are the LBP Specs?
The LBP on Copper is set up with the following metrics:
Where: Minterest.com LBP Pools: Copper Start: 08th of February 2022 – 2 pm GMT End: 10th of February 2022 – 2 pm GMT MNT Max Supply: 2,500,000 MNT(2.5% total supply) LBP Base Pair: USDC/MNT Initial MNT liquidity provided: 2,500,000 MNT Initial USDC liquidity provided: 300,000 USDC LBP Weights: Starting at 98/2 and will gradually adjust to 50/50
LBP Starting price: 5.88 USDCFor more information, please visit Copper.
When is the token private launch on DEXs and CEXs?
Token TGE and private launch on DEXs and CEXs will take place after the Minterest Protocol launches.
What are the vesting terms?
There will be no vesting for the tokens in the public offering. All tokens will be fully unlocked upon the launch of the Minterest Protocol (scheduled for March 2022). They will be fully liquid to trade on exchanges, to stake on Minterest, and to provide liquidity on DEXs.
Minterest is a decentralised lending protocol. It comes with a unique economic model where the protocol itself captures 100% of the value it creates from interest income, flash loan fees, and auto-liquidation fees which it distributes to its users in return for their active participation in governance.
*Note that Minterest’s Autoliquidation Engine has been renamed to Solvency Engine.
04.22 UPDATE: Due to significant market support to prioritise Ethereum as the protocol’s launch network, we are launching on Ethereum first and will launch on Moonbeam later.
AN UPDATED BLOG FOR CAE 2 (SCHEDULED FOR 24TH JANUARY 2022)
As you all know, we launched the #NextLevelDeFi community allocation event last month that was later postponed due to a delay in the Minterest LBP Token Event. All the participants who deposited their funds in the Community Allocation Event were fully refunded, including the gas fees, on 10th of December.
We are incredibly grateful for the support from everyone who participated and put their trust in the Minterest team. Head over to this blog post to learn more about our community allocation event.
In this short guide, we will explain the process of participating in the Community Allocation Event 2 and how you can become a part of the protocol’s growth journey.
Community allocation rewards
Just a recap from our previous guide; in the Community Allocation phase, people who signed up with the Minterest Sign-up Bot in Telegram will have a guaranteed allocation of between 100 USD and 500 USD.
The Community Allocation Event offers the following rewards:
Guaranteed allocation with the lowest average price in the subsequent LBP. Learn more about how this value is calculated here.
Activation of all NFT lottery tickets held, the CAE 2 participation being the gateways to win an NFT with APY boosts exceeding 7-figure value-add and access to exclusive pre-mining during the private launch of the Minterest protocol in Q1 2022.
How to participate in the Community Allocation Event (CAE 2)
Step 1: Whitelisting (Opens 10th January 2022)
Access the whitelisting via confirmation email
10.01.2022 – People who signed up with the Minterest Sign-up Bot in Telegram in December 2021 will receive an email from [email protected]. Please make sure to double check the email address once you receive it to avoid phishing attacks or scammers trying to get access to your funds. We will never request funds via email. This email will only ask you to complete the whitelisting steps in our whitelisting software.
10.01.2022 – 24.01.2022 – The email will contain a link to the whitelisting interface. Please make sure the whitelisting email was sent from [email protected]. Then click the link and continue with the whitelisting. To participate in the event, participants must input their email, their sending/receiving MetaMask wallet address and follow us on Twitter.
Once you complete the whitelisting you will receive a confirmation email from [email protected] confirming it. This email will contain your unique referral code and a link to the whitelisting page to confirm your participation status.
Refer and earn
We are excited to see our community grow, and you help introducing the #NextLevelDeFi by referring your friends and getting rewards! You’ll get a chance to win 1 more NFT lottery ticket for each referral. Read about the 7-figure NFT lottery prize pool here.
Step 2: Depositing in the CAE 2 (Opens 24th January 2022)
Community Allocation Event access
24.01.2022 – 31.01.2020 – On the 24th of January 4pm GMT+2 you will receive an email that contains a link to the Community Allocation Event Deposit Interface. The event will be open for one week, and you can deposit up to 500 USDC.
You will be able to make a deposit via Metamask. We support both ETH and BSC networks. Read the following instructions on how to set up your Metamask wallet for a low gas fee transaction via the BSC network. Click here.
Your depositing address will also be your Moonbeam network receiving address (since Moonbeam shares the same wallet address structure as Ethereum and BSC) and will be automatically documented when you connect your Metamask wallet.
Final confirmation
24.01.2022 – 31.01.2020 – When your funds are deposited, you will receive a confirmation email, informing you that your funds have safely reached Minterest.
Confirmation of token price
To know exactly how many tokens you will receive through your CAE 2 deposit, you need to wait until the end of the LBP token event on the 11th of February 2022. This day you will receive an email informing you about the number of MNT tokens you have secured in the CAE 2, priced at the lowest average price in the LBP, securing you the best price token price in the whole public event. Read more on how this price is calculated here.
Liquidity bootstrapping pool
More information will follow in a separate article on how to participate in the LBP.
Sign up for the whitelisting and join our Telegram and Discord channels to become a part of our growing community!
What is Minterest?
Minterest is a decentralised lending protocol. It comes with a unique economic model where the protocol itself captures 100% of the value it creates from interest income, flash loan fees, and auto-liquidation fees which it passes on to its users in return for their active participation in governance.
AN UPDATED BLOG FOR CAE II (SCHEDULED FOR 24TH JANUARY 2022)
The Next Level Minterest APY Boost NFT lottery.
The entire premise of DeFi is to create a fairer, more inclusive financial ecosystem for all. However, Minterest is fully aware that the biggest proportion of the beneficiaries are professional investors. For example, according to Dune Analytics. 72% of all TVL in Compound is held by only a few wallets. In addition, users often miss out on allocations, and Minterest aims to change this.
Firstly we have created an environment whereby everyone who signs up for the whitelisting is guaranteed an allocation. Secondly we launched a ground-breaking NFT lottery with 7 figure APY boosts that the entire community can access, instead of a wealthy few!
Why NFTs?
The NFTs are designed to incentivise investors with large TVL and to foster long-term loyalty. The NFTs will give the top level investors the ability to earn up to 50% more APY for a three-year period on unlimited TVL. For the largest professional users, this NFT unlocks protocol functionality that can result in millions of dollars of additional rewards. Further, the NFTs work as “keys” to exclusive protocol functionality, e.g. early access to the protocol beta launch.
The NFTs could generate tremendous value for anyone who holds them, and the entire Minterest community will have the opportunity to access them. Each NFT features custom artwork in the image of a blockchain superstar, crafted by noted illustrators. View all unveiled NFTs and marvel at the range of artistic expression at our NFT gallery here: NFT gallery.
How it works
The lottery has 85 NFTs – all providing different boosts over different time periods for unlimited TVL. The 85 NFTs will produce a protocol functionality value-add which will exceed 7-figures – Our Level 1 NFT, featuring Satoshi Nakamoto, provides a rewards boost of 50% over 36 months, plus early access to the Minterest protocol beta launch.
NFT lottery tickets can be collected throughout the Minterest Next Level Community Allocation Event (CAE), benefiting early supporters and rewarding referrals.
The NFT Levels & functionality
The Minterest APY boost NFTs have different functionalities based on their levels. As we mentioned in a previous article, the value-add of one NFT can exceed 7 figures. Please visit here for more information: NFT lottery. We are making sure that all our community benefits from the tremendous value of these NFTs, locking away 85 of those in the lottery pool!
The major lottery for Minterest NFTs will take place on the 14th of February. To be eligible you must make a deposit in CAE or LBP. Earn NFT “APY Boost” lottery tickets by referring a friend in the Whitelisting interface. Each person referred will result in an additional lottery ticket for you and them! Please ensure that you complete all mandatory steps in the Whitelisting.
Tier
NFT Totals
Emission Boost
Expiry (Mth)
NFT in Lottery Pool
1
1
50
36
2
9
45
30
3
15
42.5
28
4
30
40
26
1
5
60
37.5
24
2
6
90
35
22
3
7
120
30
20
4
8
150
27.5
18
5
9
175
22.5
12
10
10
350
20
9
15
11
960
20
6
20
12
1040
20
3
25
According to the Whitepaper 1.2 updates, the validity boost has been changed.
Tier
NFT Totals
Emission Boost
Expiry (Mth)
1
1
50
38
2
9
45
32
3
15
42.5
30
4
30
40
28
5
60
37.5
26
6
90
35
24
7
120
30
22
8
150
27.5
20
9
175
22.5
14
10
350
20
11
11
960
20
8
12
1040
20
5
What do I need to do to participate
You can simply follow this link and complete the whitelisting steps.
You can earn NFT ‘APY Boost’ lottery tickets by referring a friend in the whitelisting interface. If a referral completes at least one action, both of you will receive an additional lottery ticket.
To be eligible to participate in the NFT ‘APY Boost’ lottery, you must make a deposit in CAE 2.
Did you Whitelist in the December 2021 CAE and are curious about whether you need to Whitelist again?
If you participated in the earlier CAE in December 2021 and opted to keep your deposit with Minterest, you are not required to Whitelist again. However, Whitelisting again with the same email address can earn you more lottery tickets through referring friends. Note, all of your previously earned lottery tickets have been rolled-over into this CAE!
Received a refund or did not make a deposit at all, you are required to Whitelist again using the same email address. Any previously earned lottery tickets will roll-over into this CAE too!
Have a look at our event pagefor more information and Don’t forget to follow us on Twitter or join our Telegram and Discord channels to ask any questions and stay up to date with our current events.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on rewards to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation rewards with users.
Welcome to the sixth issue of the Minterest weekly updates where we provide key insights to our community for our weekly progress. At Minterest, we are building a truly fair and community-centric DeFi Lending protocol, starting the era of #NextLevelDeFi.
1) Security
At Minterest, the security of the protocol is one of our main priorities. This week, the backend development team spent a lot of time on fixing and improving the security of the Minterest protocol.
The team modified hundreds of lines of code to fix even the smallest potential weak points and also optimize the contracts to consume less gas and be more efficient. The team will continue working on these improvements in the coming weeks.
2) Emission System Contracts
The team also finalized a new contract for the Emission system; the logic responsible for distribution of MNT tokens for using the protocol. This Emission system takes into consideration the amount of lent and borrowed assets, share of each user in a market, and distributes the rewards on a per-block basis.
As this logic for the Emission system is ready, the team will now start integration of NFT boosts into the contract.
3) Dripper Function for the Buy Back Contract
The team has added dripper functions to the Buy Back contract, responsible for the process of distribution of MNT tokens during the Buy Back.
These dripper functions will also define how much of all the MNT tokens in a treasury will be distributed in the next month, and how frequently this will happen. The plan is to have it drip a minor amount of MNT tokens on an hourly basis – thus the name Dripper.
4) Improved Layouts
The web development team has been busy improving the layouts for the Minterest products and the upcoming community events. For the mobile-only users, the team has implemented a mobile view for community events and added support for some of the mobile wallets to make the experience seamless for users.
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on the protocol surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation rewards with users.
Welcome to the 5th issue of the Minterest weekly updates where we provide key insights to our community for our weekly progress. At Minterest, we are building a truly fair and community-centric DeFi Lending protocol, starting the era of #NextLevelDeFi.
1) New and Improved Community Allocation Event Application
The Minterest development team is working hard to bring new innovations and improvements to the pipeline. One of the first things we accomplished this week is the new and improved Community Allocation Event application, which is much more robust and user-friendly. The new application can also track user status based on their on-chain activity.
2) Finalising the Test Structure
Another milestone for this week is bringing a huge improvement to the Minterest’s test structure. The Minterest codebase now has over 10,000 lines of test code, which is now properly refactored and optimised to make it run faster with efficient execution.
Bringing such improvements to the test structure took more than a month which is now being finalised.
3) More Efficient Buy Back Logic
The Minterest Buy Back logic has also been improved with more efficient implementation. The previous implementation of the Buy Back logic involved a user loyalty curve which was very expensive in terms of gas fees.
The Buy Back calculation is more frequent as it happens every time a user enrolls or leaves the Buy Back, the team improved the mathematical model to simplify the calculation of user bonus without losing too much accuracy. This new mathematical model was built from scratch on Python first, then tested on many sets of data and was finally implemented in the Solidity smart contract.
4) NFT Contracts
This week, the NFT contracts were finalized and merged into the master branch. Minterest NFTs won’t just be used as collectibles; they will boost the emission rewards for using the protocol.
Minterest NFTs aren’t linked to the underlying economy models, this is a work in progress for upcoming weeks.
5) New Error Handling System
The last point of focus during this week was a new error handling system. The new implementation is sophisticated and light-weight that helps the team to reduce the weight of contracts.
Implementing this system involved refactoring of most of the application files; more than 2,000 lines of code were modified.
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses with users.
While there is a lot of excitement around the Minterest Community Allocation Event (CAE), there has also been a lot of questions. So I thought It would be a good idea to give you an overview of our thinking around it.
Firstly, it’s important to know that the CAE was not intended to be Minterest’s key fund-raising event which is why the CAE hasn’t been promoted widely on social media. The CAE’s fundamental purpose is to support our community of smaller participants. It is often the case that smaller users get locked out of participating in allocation events, and due to the fact that we have put our community at the core of everything we do, we wanted to walk the talk by making it fair and equitable.
The challenge we faced was “how do we support the requirements of Minterest, while also addressing the inclusion of smaller participants?”. The answer has two elements – allocation and price.
AllocationFor smaller supporters allocation is often an impossible dream. IDOs for example, are not intended as key fund-raising events either, but instead they are low cost community building exercises. Usually, the community around an IDO platform piles into the project chasing tiny allocations which they almost never receive. The smaller participant shares a very common frustration; being promised much and delivered little.
PriceMinterest is using an LBP to conduct its fundraise. LBPs are considered the fairest form of fundraising, given that anyone may participate and buy as much as they want, but once again, they are often intimidating for smaller supporters given their pricing mechanics. People can be uncertain about when and at what price they should buy, given the inevitable FOMO on accessing a potentially better price later. Ensuring that all participants can get the same allocation and at the same lowest price in Minterest’s LBP, was our way of delivering on our promise of a fairer, more inclusive DeFi ecosystem.
Why care about smaller participants if Minterest’s liquidity will mostly be provided by large players?The short answer is long term sustainability, global businesses do not get built overnight and while rapid global growth is appealing and desirable, sustainable businesses grow over time, and this is why small participants matter to Minterest.
Trust – not just lip serviceWhen it comes to people’s assets we are acutely aware that brand and trust really matter. People are faced with plenty of less than honourable projects, offering ridiculous returns wrapped in short-term unsustainable strategies. However those models and returns are like sandhills, they are likely to move or disappear overnight. One day everyone will wake up thinking, “Where did all the crazy stuff go?” and when they do, Minterest will be there, consistently and reliably growing wealth for its community.
From acorns to oak treesOak trees grow from acorns. In crypto, the number of emerging large investors has grown rapidly, but this pool is finite and limited. Minterest recognises that their future lives in the acorns, the billions of people who want to sustainably grow their wealth in a safe and fair ecosystem. Minterest wants to be there for smaller participants now, and in the future, supporting them in their journey.
Is this rational strategically sound?Yes, and it’s one way Aave has outcompeted Compound in achieving market dominance. There have been other more significant factors but Aave has been much more inclusive and community centric from inception and has been rewarded for doing so, as its community has grown both in size and asset wealth.
So this should answer your questions on why a CAE, it’s for you, our valued supporters and we are excited about building a world class protocol that truly delivers on our vision of fairer finance for all.
Yours sincerely,
JR Minterest
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects. It is a decentralised financial platform that is fair and inclusive, with the specific aim of putting user benefits at its core.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on protocol surplus to contributing platform users. This way, users receive protocol surplus on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation revenues with users.
Editor’s note, 20th Dec 2022: Lottery results have been appended to this page. This lottery has concluded, however, there will be another major lottery after the LBP on 15th February 2022.
A few days ago we announced to you, our valued supporters, that we were postponing the Minterest Community Allocation Event (CAE).
In the spirit of the Minterest ethos it was an easy decision to automatically return your funds plus gas fees on Friday, 10th December 2021. We also set up a process to allow you, the community, to opt-in to leave your funds with Minterest through the rescheduled date for LBP from 8th February 2022 to 11th February 2022.
The opt-in process is now closed, and we are overwhelmed and humbled by your response, with the majority of you deciding to keep your deposits in place. We did not take your decision lightly, and we profoundly appreciate the trust and confidence you have placed in Minterest.
All CAE participants from the Minterest community spent time, effort, and capital so it is only fair that we thank you in return. Here is what we are going to do for every person who successfully made deposits during the CAE:A few days ago we announced to you, our valued supporters, that we were postponing the Minterest Community Allocation Event (CAE).
In the spirit of the Minterest ethos it was an easy decision to automatically return your funds plus gas fees on Friday, 10th December 2021. We also set up a process to allow you, the community, to opt-in to leave your funds with Minterest through the rescheduled date for LBP from 8th February 2022 to 11th February 2022.
The opt-in process is now closed, and we are overwhelmed and humbled by your response, with the majority of you deciding to keep your deposits in place. We did not take your decision lightly, and we profoundly appreciate the trust and confidence you have placed in Minterest.
All CAE participants from the Minterest community spent time, effort, and capital so it is only fair that we thank you in return. Here is what we are going to do for every person who successfully made deposits during the CAE:
You will receive 5 extra lottery ticketsAll supporters who successfully deposited funds will earn an extra 5 NFT “APY Boost” lottery tickets.
You will participate in the exclusive CAE “Thank you” lottery for 20 NFTsA total of 20 NFTs will be distributed to community members daily, from Monday, 13th December until Friday, 17th December at 12:00pm GMT
You also keep all lottery tickets earned for the next major lottery after the LBPAll of your earned lottery tickets will also be applied to the next major lottery held on the 15th February 2022 after the LBP. These actions are simply to say a heartfelt thank you for your support and understanding.
Understanding the value of an NFT
The value of these NFTs has been described as very significant. Depending on the level, the NFT holders could be looking at a 7 figure asset. Not only will the NFT provide a massive APY boost, it will work as a “key” to valuable protocol functionality, providing exclusive access for example, to a pre-mining phase of the protocol private launch.
The lottery includes 20x NFTs from levels 7 through 10, each with their own special APY emissions boost rewards. Each day 4x new NFTs will be awarded as follows:
Each day of the event our team will be live on Telegram at 12pm GMT to randomly draw the winning four names and describe the NFTs that will be awarded. The daily results will be published on Twitter, in case you do not manage to join the live event.
Within 24 hours of the daily ticket announcements, winners will receive an email from Minterest providing instructions on how to claim their NFT.
We wish you the best of luck and we are excited to see who will be walking away with these incredible crypto assets.
TLDR: Minterest CAE “Thank you” Lottery
What: 20 NFTs will be given away to CAE participants
When: Daily, from Monday, 13th December until Friday, 17th December at 12:00pm GMT
Who: All Community Allocation Event (CAE) participants
Results of the Minterest CAE “Thank You” Lottery
Here are the winners of Minterest’s CAE “Thank You” Lottery week, which ran from 13th to 18th December.
Winners are identifiable via the last five digits of their wallet addresses used to deposit USDC during the CAE. Due to privacy reasons, emails and names will not be shown.
Day 1 Level 7 NFTsEd40a 057df 42a35 c5e98
Day 2 Level 8 NFTs5556A 5Ad9B 5148D 666a8
Day 3 Level 9 NFTs45C89 1dd23 3c0Db 89fd1
Day 4 Level 10 NFTs8daB4 a4660 d2531 30e40
Day 5 Level 10 NFTs7F603 54aA1 189f9 9F961
Congratulations to all winners! You will have received an email from us, detailing next steps on how to claim your awarded NFT.
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on revenue to contributing platform users. This way, users receive protocol revenue on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation revenues with users.
What has become very evident over the past week is that holding the Next Level LBP on 15th December will not allow enough time to properly explain the various innovations of the Minterest protocol, plus the novel concept of NFTs being paired with protocol functionality, both of which are essential components of the LBP.
Holding the LBP within given time frames was therefore a strategic error, an error that was mine and one for which I apologise.
Therefore, we will now hold the LBP from 8th to 11th February 2022. Doing so however, will impact people who participated in the recent Community Allocation Event (CAE).
In participating in the CAE, the agreement with Minterest was simple and clear. Participants would forward their funds and Minterest would hold an LBP from 15th to 18th December. Following this, participants would know the price they paid for MNT, which would be the lowest average price achieved in the LBP.
In rescheduling the CAE, Minterest is breaching its agreement with its community and in our book, this is not OK. To restore our relationship with our community, we are undertaking the following:
We will reschedule the CAE for 24th January 2022 with the same financial terms as before.
As a default position, we will return every participant’s funds, plus any gas fees they may have incurred, on 10th December 2021. This is a very significant undertaking given the number of people who participated. It is possible there may be some minor delays for a small number of people and if so, please bear with us, we will resolve such issues as quickly as possible.
Should people find it more convenient to not have their funds returned as they are clear they will again participate next year, then they may notify us with an “opt in ”. We will hold their funds, and then roll them into the new CAE on 24th January 2022 on identical terms. Opt in details are below.
We will provide an additional series of NFT giveaways, as compensation for the inconvenience caused. Again, please find the details below.
Minterest is introducing new innovations to DeFi intended to be breakthroughs in the lending protocols sector. These innovations are significant in number, complex technologically and regarding model design, highly sophisticated. These schedule changes now allow us to properly communicate these innovations to enable Minterest’s community to properly appreciate their value.
The women and men behind the Minterest protocol are unquestionably amongst the very best in the game. With regards to this error in my judgement, I would ask you, please judge me and not them, or their extraordinary work.
Yours sincerely,
Josh Rogers Minterest
MINTEREST’S NEW TREASURY FUNDRAISING DETAILS
Opt-out of automatic refund
All funds deposited during the Community Allocation Event will be automatically refunded.
If, however, you prefer to keep your funds with us until the New Community Allocation event on 24th January 2022 please enter your Whitelisted email into the following Google Form on or before 9th December (15:00 GMT) here
ADDITIONAL INFORMATION
Supporters that incurred an error during their deposit might face a delay, and we will work to resolve this as soon as possible.
Bonus NFT Lottery Tickets as a thank you for your understanding and patience, all Community Allocation Event participants who deposited will be awarded 5 additional NFT “APY Boost” lottery tickets.
Thank-You NFT Lottery WeekAll those who have lottery tickets AND have participated in the Community Allocation Event will participate in an additional “Thank-You” lottery to win NFTs during the week of 13th December. The lottery is simply to express our gratitude to our early supporters and for their inconvenience.
LBP NFT Lottery WeekIn addition, all existing lottery tickets will carry over to the next major lottery after the LBP. The subsequent lottery will take place during the week of 15th February 2022.
Questions
Please reach out to us via the following channels:Telegram& Discord
What is Minterest?
Minterest is a decentralised lending protocol. It comes with a unique economic model where the protocol itself captures 100% of the value it creates from interest income, flash loan fees, and auto-liquidation fees which it passes on to its users in return for their active participation in governance.
04.22 UPDATE: Due to significant market support to prioritise Ethereum as the protocol’s launch network, we are launching on Ethereum first and will launch on Moonbeam later.
We’re excited to announce that Minterest—a value-capturing lending and borrowing protocol designed to make DeFi fairer—is integrating Chainlink Price Feeds on Moonbeam. The integration will allow Minterest to fetch high-quality price data during core protocol functions such as taking out and redeeming loans, and triggering liquidations of undercollateralized positions. Integrating the industry-leading oracle solution will help ensure that the prices referenced within Minterest are reliable and tamper-proof, protecting users against oracle manipulation attacks and other outlier events, such as flash crashes, flash loan attacks, and exchange downtime.
Minterest is a lending protocol on Moonbeam built to service billions in TVL and challenge existing DeFi incumbents. The protocol offers a decentralized money market, combined with an incentive structure that will facilitate and promote the widespread adoption of DeFi. By utilizing its own buyback mechanism, the protocol passes on 100% of generated surplus to its community of active participants.
Minterest captures value from the combination of interest rate, flash loan, and liquidation fees which are then passed on to Minterest users participating in the protocol’s governance over time. This results in high long-term yields and incentivizes long-term liquidity for the protocol.
A fast and secure oracle mechanism delivering reliable price feeds to determine borrowing rates and collateralization ratios is critical for the Minterest platform to operate in a safe and reliable manner. Relying on any solution that uses a single source for data delivery could result in it being compromised, unresponsive, or otherwise providing faulty information — putting the entire protocol at risk.
We decided to integrate Chainlink because it is the most time-tested decentralized oracle solution, backed by high-quality data, secure node operators, and a robust reputation framework for proving the security and performance of its systems. With Chainlink, prices referenced by Minterest are secured by a decentralized network of independent, Sybil-resistant oracle nodes run by leading blockchain DevOps with a proven track record of high availability and tamper-proofness in their delivery of data on-chain. These Chainlink nodes source data from numerous independent, high-quality data aggregators like BraveNewCoin and Amberdata, meaning there are multiple data sources that each represent a volume-weighted price aggregated from all relevant centralized and decentralized exchanges. This sourcing method is key because it prevents outlier price data on single exchanges from corrupting the aggregated price referenced by Minterest during core protocol functions. As a result, Minterest will consistently issue loans and trigger liquidations at fair market value and keep the protocol fully collateralized and solvent.
“With the integration of Chainlink Price Feeds, we can be certain that we’re using the leading oracle infrastructure available on the market, and our users have a highly reliable market data solution securing their loans,” stated JR, Founder of Minterest. “As we continue to expand our lending platform and increase DeFi adoption on Moonbeam, a reliable oracle mechanism allows us to get closer to our mission of increasing fairness and transparency in the world of finance.”
“The launch of Minterest gives Moonbeam users a best-in-class lending experience with an easy-to-use interface and an emphasis on long-term yield,” said David Post, Managing Director of Corporate Development and Strategy at Chainlink Labs. “We’re excited to support Minterest with our decentralized price feed solution in increasing DeFi adoption in the Polkadot ecosystem with a long-term mindset.”
So welcome to Minterest, in your best interest
About Chainlink
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
Welcome to the fourth issue of the Minterest weekly updates where we provide key insights to our community for our weekly progress. At Minterest, we are building a truly fair and community-centric DeFi Lending protocol, starting the era of #NextLevelDeFi.
1) Buy Back Logic
This week was one heck of a busy week for the entire Minterest team as we were working on the upcoming community allocation event. The team built the website and all the underlying systems that are essential to support the community allocation event and facilitate our users with an intuitive and comfortable experience.
Aside from our major community allocation event, the team has also finalised the development of two more smart contracts: The Vesting contract and The Whitelist contract.
Vesting Contract: This contract deals with the allocation of MNT tokens to a wallet address, but with a vesting mechanism that limits the available amount and slowly releases the MNT tokens during a set period of time. Vesting is a common mechanism that limits the selling pressure on the token, especially during the early stages of the protocol launch.
Whitelist Contract: This contract deals with the permissions and limits who can use the Minterest protocol. When the protocol will be at its initial stages with limited functionality, only whitelisted users will be able to use the Minterest protocol.
3) Access Control System
During this week, the team also built an access control system on top of admin functions of the Minterest protocol. With the new access control system, only a consensus of council of Minterest executives can apply changes to the protocol economy and setup, e.g., adding new currencies or disabling them before the whitelist mode can only be done once 3 out of 5 executives sign the transaction.
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses with users.
As you all know, we launched the #nextleveldefi community allocation event last month that was later postponed due to a delay in the Minterest LBP Token Event. All the participants who deposited their funds in the Community Allocation Event were fully refunded, including the gas fees, on 10th of December.
We are incredibly grateful for the support from everyone who participated and put their trust in the Minterest team. Head over to this blog postto learn more about our community allocation event.
In this short guide, we will explain the process of participating in the Community Allocation Event and how you can become a part of the protocol’s growth journey.
Community allocation rewards
Just a recap from our previous guide; in the Community Allocation phase, people who signed up with the Minterest Sign-up Bot in Telegram will have a guaranteed allocation of between 100 USD and 500 USD.
The Community Allocation Event offers the following rewards:
Guaranteed allocation with the lowest average price in the subsequent LBP. Learn more about how this value is calculated here.
NFT lottery entry to win an NFT with APY boosts exceeding 7-figure value-add and access to exclusive pre-mining during the private launch of the Minterest protocol in Q1 2022.
How to participate in the community allocation event
WHITELISTING
Access the whitelisting via confirmation email
10.01.2022 – People who signed up with the Minterest Sign-up Bot in Telegram will receive a confirmation email from [email protected] – please make sure to double check the email address once you receive it to avoid phishing attacks or scammers trying to get access to your funds. This email is not to request funds. This email will only ask you to complete whitelisting steps.
Access the whitelisting via direct access
10.01.2022 – 24.01.2022 – If you have not signed up with the Minterest Sign-up Bot in Telegram – the sign-up is still open here:
Whitelisting process
10.01.2022 – 24.01.2022 – The email will contain a link for the whitelisting process from [email protected]. Please double check the email address that the whitelisting email was sent from[email protected] before clicking on anything.
Then click the link and fill in the whitelisting requirements. To participate in the event, participants must input their email, their sending/receiving wallet address and follow us on Twitter.
Refer and earn: We are excited to see our #NextLevelDeFi community grow, and you can be a part of the journey by referring your friends. You’ll also get a chance to win 1 more NFT lottery tickets for each referral. Read about the 7-figure NFT lottery prize pool here.
Once you complete the whitelisting you will receive a confirmation email from [email protected] confirming it. This email will contain your unique referral code and a link to the whitelisting page to confirm your participation status.
NFT lottery updates during whitelisting process
You will receive email updates every second day regarding the total amount of lottery tickets you have earned.
COMMUNITY ALLOCATION EVENT
Community Allocation Event access
24.01.2022 – 27.01.2022 – You will soon receive an email that contains a link to the Community Allocation Event. The event will be open for three consecutive days, and you can deposit up to 500 USDC. Your depositing address will also be your Moonbeam network receiving address (since Moonbeam shares the same wallet address structure as Ethereum and BSC) and will be automatically documented when you connect your Metamask wallet.
You will be able to make a deposit via Metamask. We support both ETH and BSC networks. Read the following instructions on how to setup up your Metamask wallet for a low gas fee transaction via the BSC network. Click here.
Final confirmation
When your funds are deposited, you will receive a final confirmation email. After the LBP token event is completed, you will receive another email notification informing you about the number of MNT tokens secured at the lowest average price in the LBP. Read more on how this price is calculated here.
Liquidity bootstrapping pool
More information will follow in a separate article on how to participate in the LBP.
Sign up for the whitelisting and join our Telegram and Discord channels to become a part of our growing community!
What is Minterest?
Minterest is a decentralised lending protocol. It comes with a unique economic model where the protocol itself captures 100% of the value it creates from interest income, flash loan fees, and auto-liquidation fees which it passes on to its users in return for their active participation in governance.
The entire premise of DeFi is to create a fairer, more inclusive financial ecosystem for all. However, Minterest is fully aware that the biggest proportion of the beneficiaries are professional investors. For example, according to Dune Analytics. 72% of all TVL in Compound is held by only a few wallets. In addition, users often miss out on allocations, and Minterest aims to change this.
Firstly we have created an environment whereby everyone who signs up for the whitelisting is guaranteed an allocation. Secondly we launched a ground-breaking NFT lottery with 7 figure APY boosts that the entire community can access, instead of a wealthy few!
Why NFTs?
The NFTs are designed to incentivise investors with large TVL and to foster long-term loyalty. The NFTs will give the top level investors the ability to earn up to 50% more APY for a three-year period on unlimited TVL. For the largest professional users, this NFT unlocks protocol functionality that can result in millions of dollars of additional rewards. Further, the NFTs work as “keys” to exclusive protocol functionality, e.g. early access to the protocol beta launch.
The NFTs could generate tremendous value for anyone who holds them, and the entire Minterest community will have the opportunity to access them. Each NFT features custom artwork in the image of a blockchain superstar, crafted by noted illustrators. View all unveiled NFTs and marvel at the range of artistic expression at our NFT gallery here: NFT gallery
How it works
The lottery has 85 NFTs – all providing different boosts over different time periods for unlimited TVL. The 85 NFTs will produce a protocol functionality value-add which will exceed 7-figures – Our Level 1 NFT, featuring Satoshi Nakamoto, provides a rewards boost of 50% over 36 months, plus early access to the Minterest protocol beta launch.
NFT lottery tickets can be collected throughout the Minterest Next Level Community Allocation Event (CAE), benefiting early supporters and rewarding referrals.
The NFT Levels & functionality
The Minterest APY boost NFTs have different functionalities based on their levels. As we mentioned in a previous article, the value-add of one NFT can exceed 7 figures. Please visit here for more information: NFT lottery. We are making sure that all our community benefits from the tremendous value of these NFTs, locking away 85 of those in the lottery pool!
The major lottery for Minterest NFTs will take place on the 14th ofFebruary. To be eligible you must make a deposit in CAE or LBP. arn NFT “APY Boost ” lottery tickets by referring a friend in the Whitelisting interface. Each person referred will result in an additional lottery ticket for you and them! Please ensure that you complete all mandatory steps in the Whitelisting.
What do I need to do to participate
You can simply follow this link and complete the whitelisting steps.
You can earn NFT ‘APY Boost’ lottery tickets by referring a friend in the whitelisting interface. If a referral completes at least one action, both of you will receive an additional lottery ticket.
To be eligible to participate in the NFT ‘APY Boost’ lottery, you must make a deposit in CAE 2.
Did you Whitelist in the December 2021 CAE and are curious about whether you need to Whitelist again?
If you participated in the earlier CAE in December 2021 and
Opted to keep your deposit with Minterest, you are not required to Whitelist again. However, Whitelisting again with the same email address can earn you more lottery tickets through referring friends. Note, all of your previously earned lottery tickets have been rolled-over into this CAE!
Received a refund or did not make a deposit at all, you are required to Whitelist again using the same email address. Any previously earned lottery tickets will roll-over into this CAE too!
Have a look at our event page for more information and Don’t forget to follow us on Twitter or join our Telegram and Discord channels to ask any questions and stay up to date with our current events.
What is Minterest?
Minterest is a decentralised lending protocol. It comes with a unique economic model where the protocol itself captures 100% of the value it creates from interest income, flash loan fees, and auto-liquidation fees which it passes on to its users in return for their active participation in governance.
Minterest is a ground-breaking lending protocol built by industry leaders to challenge existing DeFi incumbents and service billions in liquidity and is so doing providing its users the highest long term yield in DeFi.
As you all know, we launched the #nextleveldefi community allocation event last month that was later postponed due to a delay in the Minterest LBP Token Event. All the participants who deposited their funds in the Community Allocation Event were fully refunded, including the gas fees, on 10th of December.
In this short guide, we will explore the Minterest’s public distribution that will occur in two distinct phases:
Both phases are intended to be completed by Q1 2022. In parallel, the protocol will be assessed by leading security firms, getting ready for the private launch and TGE later this year.
Phase 1: Minterest Community Allocation Event
The community allocation event is intended to ensure a maximum allocation of 500 USD to any and all members of Minterest’s community.
Who is eligible to participate in the Minterest Public Distribution?
The Minterest Public Distribution is open to anyone except for citizens, residents, and incorporated entities of the United States and the following sanctioned countries: Cuba, Iran, Crimea Region of Ukraine, North Korea, Syria.
How do I sign up for the Minterest Community Allocation event?
If you signed up during the earlier #nextleveldefi event, your allocation is confirmed. If you did not, please check the following link to sign up: here.
For those who are interested in participating in the community allocation event we created a short guide here.
What is the price of the Minterest token (MNT)?
The price is determined based on phase 2: the Next Level liquidity bootstrapping pool (LBP). All participants in Minterest’s community allocation event will receive MNT at the lowest average price set in the Next Level LBP. Please see the details in Phase 2 below.
What is an LBP and how does this all work?
Please see the details in Phase 2 below.
Why is there a guaranteed allocation?
The public offering was designed to uphold the community-centric principles upon which Minterest was designed throughout its fund raising process. The community allocation event is designed to:
Enable early supporters to secure an allocation prior to the Next Level LBP.
Provide early supporters with confidence regarding their pricing.
Ensure gas prices are minimized for those who may be impacted during the Next Level LBP.
Why do you receive the lowest average price in the Next Level LBP?
Minterest’s goal is to be fair and equitable while ensuring a wide distribution of the native MNT token. Irrespective of any outcomes in the Next Level LBP, the participants in the Minterest community allocation event are assured of the lowest average price that occurs during this process. In the following section we describe the Next Level LBP in detail and how LBP architecture is used to derive a fair market structure through price discovery.
What are the Community Allocation Event terms?
The allocation starts from min. 100 USD to max. 500 USD. The maximum allocation can be increased later, based on the response from the community. Anything below the minimum and above the maximum amount will be forwarded to the treasury.
The price is the average lowest price in the subsequent LBP (read more below).
The funds can be sent through the Ethereum or Binance Smart Chain network (to reduce gas fees). We will support Metamask integration, please read here how you can add the BSC network on Metamask.
There will be no vesting for the tokens in the public offering. All tokens will be fully unlocked upon the launch of the Minterest Protocol (scheduled for March 2022). They will be fully liquid to trade on exchanges, to stake on Minterest, and to provide liquidity on DEXs.
What are the funds used for?
The funds raised will be used for bootstrapping the Treasury of the Minterest DAO.
Were there other investment rounds before the community allocation event?
Yes, Minterest Labs raised $6.5 million from key investment partners like KR1, CMS, DFG, NGC and others. All related information is disclosed here: Minterest’s village of supporters. There is another pool for industry leading marketing partners and we will provide an update here soon.
Phase 2: Next Level LBP
Why LBP?
In LBP events, supporters are able to participate in a variant to the ‘dutch auction’ process. Dutch auctions are a mechanism where instead of participants getting an offering at a fixed value, the process allows anyone to bid their own chosen quantity and decide on the value they are willing to attribute. Unlike traditional auctions where bidders bid the value up, the value of the asset will fall over time until participants acquire tokens at the volumes they are seeking.
To read more about how an LBP works, please read this great guide by Balancer.
The Minterest LBP will be conducted on Balancer where people can directly buy MNT tokens using USDC (ERC-20); more details for the LBP specifics will be disclosed later. Participants will have access to a Minterest interface for a simple and transparent experience, hosting an overview and a leaderboard detailing live the USDC spent by various participants in the LBP. The leaderboard provides valuable transparent insight for those purchasers seeking, as part of their purchase of MNT tokens, to secure a specific level of Minterest NFTs; read more about Minterest NFTs here.
How do community allocation event participants get the guaranteed lowest price in LBP?
LBPs usually have a constant downward price pressure from a high initial price. According to a series of simulations run by Perpetual Protocol, the LBP price curve can have different shapes and forms depending on various parameters.
Some of the price charts from the simulations by Perpetual Protocol
However, the most common pattern is a V-shaped price curve where the initial price is high, followed by a sudden dip (the bottom point in the price curve), and then an upward continuation. To illustrate this better, let’s examine the LBP curves of some recent LBPs: Gro and Merit Circle.
$GRO LBP Price Curve
Gro is an example of a rather common price curve. The initial price for the LBP started high at $10.57, followed by a sudden fall towards $4.48, then some consolidation, and finally an upward continuation. The minimum value during the LBP was $4.48 and the end price was $9.28.
$MC Price Curve
There also exist some edge cases outside of what was described above. Also in those we have our community covered. An example to illustrate this, is the record-breaking Merit Circle LBP. Right after the LBP auction, the price of $MC touched $2.016, followed by a sudden fall towards $1.071. The closing price in the LBP was $3.20; a phenomenal ~3x from the dip during the LBP.
How is the “lowest average price” for community allocation event participants calculated?
Minterest community allocation event participants will get the lowest average price in the LBP. The price is a function of the average of the lowest LBP prices paid by total funds accumulated in the community allocation event.
Let’s assume that all participants accumulate 500,000 USD in the community allocation event. The value in the community allocation event is determined retroactively as the average value of the lowest 500,000 USD acquired through the LBP.
In more detail: Let’s assume that in the LBP there are 5,000,000 USD collected at the end of the event, where all LBP participants paid a different price. Sort all 5,000,000 USD provided by the token price paid from high to low, and take the average price of 500,000 USD from the bottom and average it. This is the average lowest price in the community allocation event.
How do I participate in the Next Level LBP token event?
For those who are interested to participate in the Next Level LBP event, we created a short guide here. Once you sign up, there will be a whitelisting process where you will receive all the instructions via email.
Next Level community allocation event:
The NFT lottery
The Minterest NFTs carry a significant boost in the protocol’s emissions rewards and allow early access to the private launch of the Minterest protocol (expected Q1 2022). Minterest NFTs offer up to 50% boost in a user’s MNT Emissions Rewards.
A total of 3000 NFTs will be issued across 12 different levels, with each represented by 1 of 100 unique images. Each level has more types of NFTs, with higher boosts in Emissions Rewards and periods of validity being applied to rarer NFTs.
Please read about Minterest’s NFT functionality here: NFT Lottery.
The NFT bonus rewards will be distributed among the participants that are at the top of the leaderboard based on the total amount of net USDC token acquisition amounts.
To enable community members with smaller wallets a chance at an NFT, the NFT lottery contest was launched for early signups to the #nextleveldefi event. To date, we have secured over 25K signups.
Sign up for the whitelisting in our Telegram Channel and feel free to ask any questions to the team directly in Discord!
What is Minterest?
Minterest is a decentralised lending protocol. It comes with a unique economic model where the protocol itself captures 100% of the value it creates from interest income, flash loan fees, and auto-liquidation fees which it passes on to its users in return for their active participation in governance.
Welcome to the third issue of the Minterest weekly updates where we provide key insights to our community for our weekly progress. At Minterest, we are building a truly fair and community-centric DeFi Lending protocol, starting the era of #NextLevelDeFi.
1) Solvency Check Architecture
After two months of rigorous testing and investigation, the Minterest team has finalised the solvency check architecture. The logic behind this new architecture is designed to track the list of borrowers off-chain, and constantly monitor their collateral position on-chain. This architecture is a part of our automated liquidation flow.
To put this into perspective, the solvency check module analyzes all the collateral positions and identifies people whose loan positions are no longer covered with the required collateral. All the compiled data is then relayed to the automated liquidation flow.
2) Security Auditor
Another great addition to our team! We onboarded a designated security auditor this week to analyze every single line of code even before the official code audits from Trail of Bits and other security auditing agencies. Protocol security is one of our core priorities here at Minterest.
3) Community Telegram Bot
We have improved our community telegram bot to facilitate our community members. Our community bot now has more features such as tweaking texts and instructions, and several types of notifications to help community members stay informed about their NFT lottery tickets.
4) Development Tools
Earlier this week, we also started working on the development of tools to automate interactions with DEXes (Decentralized Exchanges). DEX pools sit at the core of our automated liquidation flow to facilitate asset swaps in case of a liquidation event. These tools will help us automate this interaction with the DEX pools in case of liquidations.
5) Improved UI for Community Events
The frontend team is now focusing on developing and improving the UI for our future community events. This includes a lot of features to facilitate interactions with our community members, such as sending transactions with ease, charts, feedback with emails, educational pages, and more.So welcome to Minterest, in your best interest
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation surpluses with users.
Welcome to the second issue of the Minterest weekly updates where we provide key insights to our community for our weekly progress. At Minterest, we are building a truly fair and community-centric DeFi Lending protocol, starting the era of #NextLevelDeFi.
1) Buy Back Logic
After several months of thorough research and modelling, the Minterest development team has finalised the underlying logic for the Buy Back mechanism and has approved the release version of the Buy Back smart contracts, which will be sent for an internal security audit.
The Minterest application is now capable of calculating the shares of all the users in a pool who stake MNT tokens, and accurately calculating the current exchange rate of MNT to Minties (the virtual discounted money used in the Buyback mechanism).
2) Dynamic Economic Model
Last week, we developed a linear economic model for a token market, where the utilization rate on individual pools directly affects the interest rates.
This week, we worked on a second type of an economic model for a market that is more dynamic.
In this new dynamic economic model, a multiplier is applied to the rates as the utilisation ratio reaches a kink point. These dynamic rates prevent protocol insolvency during extreme volatility.
3) MetaMask Integration
The frontend team has finally integrated Metamask and developed the initial draft of the application that allows us to test our economic models and market behavior from users’ perspective.
The development team has been constantly wiring up the frontend to our backend, and the application already shows real on-chain data about markets (total borrowed, total lent etc).
4) Telegram Community Bot
Our Telegram community bot allows the community members to sign up for our future events. To better facilitate our community, we have added a /help function to our community bot, with more refined texts and a notification feature.
The bot will remind people to fill in their email if they haven’t done so already, or remind them to use the referral link if a user hasn’t referred anyone yet. The reminder has proven very effective – it has reduced the amount of users with no emails by 7% after its first launch.
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has its own on-chain liquidation and buyback mechanisms, the Minterest protocol automatically distributes the value it captures from interest rate, flash loan and liquidation fees to users. It does this via MNT tokens that it acquires on-market, ensuring your highest long-term yields.
04.22 UPDATE: Due to significant market support to prioritise Ethereum as the protocol’s launch network, we are launching on Ethereum first and will launch on Moonbeam later.
Just a week after launching Minterest’s community allocation event, the community grew to 20,000 people with over 20,000 subscriptions for the event – just extraordinary growth!
We are incredibly grateful for the support from everyone who has assisted in achieving this result, including Minterest investment partners, marketing partners and all of you – our community! The best part is: we are just getting started!
Community comes first
Building and growing Minterest’s community has always been a priority and in doing so building trust and inclusivity, with community sitting at the core of what Minterest does and is about.
When exploring ways people might access the protocol and interact with the protocol, it seemed many common options did not create the inclusion being sought, but rather promoted user ‘fomo’. To reflect Minterest’s ethos of fairer finance and inclusivity, we redefined what a conventional community allocation event looks like – welcome to the NEXT LEVEL.
This is an event where all sign ups are guaranteed an allocation! In addition, people get the opportunity to win a Minterest NFT in the NFT lottery, which provides its holder significant boosts in APY, and which can be used or traded to others for whom such a feature is highly valuable.
Such NFTs will grant the holder an APY boost with potentially very significant value-add depending on their supply of liquidity to the protocol. NFT holders will earn a higher yield without impacting the rewards of other participants.
Each whitelisted participant will receive a number of lottery tickets proportional to how early they sign up. Find more details on the NFT lottery here.
Sign up to get guaranteed allocation & APY boost lottery tickets.
Community weekly highlights
We have just hit the 20,000+ signups milestone on our community allocation event! The team behind Minterest are very active in the channel, ready to answer questions and provide regular updates.
Here are some of the highlights from last week’s activity:
Minterest is partnering with Moonbeam, and where the protocol will be launching on their EVM-compatible smart contracting parachain on Polkadot. Moonbeam will provide recognised world-class technical support to assist with the protocol’s migration, and Minterest will act as a magnet for attracting liquidity onto Moonbeam’s parachain. Read more about the Minterest-Moonbeam partnership here.
We conducted our first community AMA featuring Korean community CryptoNeedle (@Blocktoday) and Founder JR. JR explained how the token holders will benefit from Minterest’s unique autoliquidation* functionality, compared to other lending platforms where liquidation fees are lost to external third parties.
Minterest was featured in the Altcoin Buzz News – ‘Minterest is set to go live on Moonbeam Network , providing the best of both Ethereum and Polkadot to the decentralized finance space’.
Minterest was featured in The Fintech Times – ‘In order for DeFi to remain relevant and ensure longevity, creating a fairer financial system for all, innovation must put the user at the core, says Minterest’.
CTO Denis Romanovsky discussed recent exploits in DeFi with community members, and how Minterest’s engineering culture is geared to not suffer similar events and prioritise protocol security.
CMO Alexander Funck clarified and discussed the workings of the NFT lottery, as well as the friend referral signup for the Community Allocation Event.
CTO Denis Romanovsky addressed the source of APY boost tokens for NFT holders, which is designed to give NFT holders a higher yield without impacting the rewards of other participants.
Join our Telegram Channel today and become a part of our growing family!
*Note that Minterest’s Autoliquidation Engine has been renamed to Solvency Engine.
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation surpluses with users.
04.22 UPDATE: Due to significant market support to prioritise Ethereum as the protocol’s launch network, we are launching on Ethereum first and will launch on Moonbeam later.
Welcome to the first issue of the Minterest weekly updates where we provide key insights to our community for our weekly progress. At Minterest, we are building a truly fair and community-centric DeFi Lending protocol, starting the era of #NextLevelDeFi.
1) Economic model
This week, the Minterest development team has designed and developed a series of smart contracts for the implementation of a preliminary economic model for a token market. The smart contracts can process ERC20-equivalent tokens for Moonbeam and accurately track the interest rates for supply and borrow. Users can now lend and withdraw assets with properly calculated income, as well as borrow and supply assets with properly calculated interest rates. The current economic model is linear, where the utilization rate on individual pools directly affects the interest rates.
2) Design
Our design team has worked tirelessly to draft the application UI for the MVP that covers a key set of features. Our front-end developers have already started the implementation of the application UI, and successfully developed the landing page with market information. The five basic operations are now available for the users.
3) DevOps
To streamline the development operations and sanity checks, our team at the DevOps department has built a pipeline with code analyzers and security checks to maintain the security and stability of our smart contracts code.
4) Community
To help our vibrant community, our team has also launched a Telegram bot that allows community members to sign up for our future events. A lot of things are in the progress for the upcoming community event, so stay tuned.
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation surpluses with users.
04.22 UPDATE: Due to significant market support to prioritise Ethereum as the protocol’s launch network, we are launching on Ethereum first and will launch on Moonbeam later.
The news follows Minterest’s recent $6.5m raise to create a new, fairer DeFi structure that puts users first
Tallinn, Estonia – November 3rd, 2021 – Minterest, a value-capturing lending and borrowing protocol designed to make DeFi fairer for users, has announced that it will be deployed on Moonbeam, an Ethereum-compatible smart contract parachain on Polkadot.
Moonbeam will provide recognised world-class technical support to assist with the protocol’s migration, while, in turn, Minterest will act as a magnet for attracting liquidity onto Moonbeam’s parachain. In joining the Moonbeam ecosystem, Minterest is also committing to creating opportunities specific to the Moonbeam community, allowing them to engage with, and benefit from, the protocol.
JR, Founder of Minterest, said, “We have made a significant step forward in choosing to build on Moonbeam. After undertaking an extensive and strategic assessment of Minterest’s options, it became clear that Moonbeam was the perfect deployment destination, and by far the best fit for the next phase of the protocol’s development. Moonbeam’s developer-friendly approach and ability to provide a gateway to Polkadot and all of its native assets are just some of the reasons we chose Moonbeam.”
Created by industry leaders to service billions in total value locked (TVL), Minterest is the world’s first lending protocol that captures 100% of value from interest, flash loan and liquidation fees which then get passed on to users. Unique features include an automated on-chain liquidation process and a buy-back mechanism which automatically passes on surpluses to contributing platform users.
Moonbeam has made significant contributions towards the development of Polkadot’s EVM and boasts an impressive ecosystem, with over 70 projects committed to building on the platform.
Rogers said, “By launching on Moonbeam, we are able to offer our users a product that combines the best of both worlds. Since Moonbeam is built on Polkadot, we gain instant access to world class network security, low gas fees, and all the functionality that Polkadot brings. At the same time, Moonbeam’s compatibility also enables our users to seamlessly access the protocol via existing Web3.0 wallets.”
“As DeFi protocols mature, they are being measured with some of the same financial metrics used to measure traditional company performance,” said Derek Yoo, Founder of Moonbeam. Minterest’s approach to pass all protocol surpluses back to token holders is both unique and in keeping with the spirit of Web3. We are looking forward to supporting the Minterest team in growing their DeFi ecosystem on Moonbeam.”
“So welcome to Minterest, in your best interest”
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism which automatically captures and passes on rewards to platform users via its unique on-chain liquidation process. This means that users participate in rewards generated by the protocol, in addition to earning industry leading borrowing/lending rates. This results in potentially the highest long-term yields in DeFi.
Minterest is now approaching the next level of its development – the community allocation event. If you haven’t heard about the Minterest protocol yet, you may find details here: minterest.com/blog.
We believe that users are the ones who give protocols their value, so we have designed the community offering to reflect our ethos of fairer finance and inclusivity, and to address the specific requests of our supporters.
Our community comes first
We listened to our community’s biggest request: By signing up for the whitelist you will receive a guaranteed allocation in the community allocation event!**
To maximize community value, we are excited to further present the Minterest “APY boost” NFT lottery! The pool of the lottery holds NFTs, which provide access to 7-figure APY boosts.*
All whitelisted participants automatically receive tickets for the lottery. The amount of lottery tickets awarded depends on how early a participant signs up to our community event. So, a day-one sign up will earn you 20 tickets. Sign up rewards will then be reduced by one each day until the end of the event. See the amount of days left on the countdown on our community allocation event page here or check in the table below.
Sign up now to maximize the amount of lottery tickets you can receive!
Lottery tickets per signup
Signup date
Lottery tickets per signup
Signup date
Lottery tickets per signup
Signup date
20
03/11/2021
13
10/11/2021
6
17/11/2021
19
04/11/2021
12
11/11/2021
5
18/11/2021
18
05/11/2021
11
12/11/2021
4
19/11/2021
17
06/11/2021
10
13/11/2021
3
20/11/2021
16
07/11/2021
9
14/11/2021
2
22/11/2021
15
08/11/2021
8
15/11/2021
1
22/11/2021
14
09/11/2021
7
16/11/2021
0
23/11/2021
NFT value explained
The NFTs provide access to protocol functionality that can generate millions of dollars in APY boosts. There are a limited number of NFTs available, which is why Minterest is committed to ensuring full tradeability of the NFTs so participants can interchange their NFTs based on their needs.
Here’s one example: Over 72% of all TVL in Compound is held by only a few wallets, according to Dune Analytics. It is no surprise that the rare and valuable NFTs are especially attractive for large asset holders. The top tier NFT will enable any holder to earn up to 50% more APY* for a five-year period on unlimited TVL. For our largest professional users, this NFT unlocks protocol functionality that can result in millions of dollars of additional rewards. Further, the NFTs work as “keys” to exclusive protocol functionality, e.g. early access to the protocol beta launch.
It makes sense that the NFTs could generate tremendous value to anyone who holds them. And, we want to provide opportunities to the Minterest community to gain access to these benefits. The lottery will give our supporters a first chance of winning such NFTs!
Why Minterest has introduced the NFT functionality
Long-term liquidity providers are essential to the health of the Minterest protocol. The NFTs are designed directly to reward long-term supporters.
The purpose of NFTs is to detach value-added benefits from individual accounts and make them transferable among the community directly or through NFT marketplaces. Imagine exclusive credit card rewards detached from an individual and thereby transferable to others, and you get the basic idea. We believe this level of flexibility will encourage sustainable and healthy growth of the protocol.
Refer your friends and receive an extra lottery ticket each
At the end of the sign up process you will get an individual referral link. Every friend you refer that uses the link to sign-up, will receive one additional lottery ticket, and so will you. For a guaranteed allocation in the community allocation event, and to get the maximum amount of lottery tickets, sign up here today.
Anti bot disclaimer
All lottery tickets will have a simple but very effective anti-bot prevention mechanism. The lottery winners will be announced only after the community allocation event. The lottery will therefore be held among participants of the community allocation event, ensuring the sign-up email belongs to a human and not a bot.
If you have any questions you can reach us on Telegram or Discord.
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation surpluses with users.
A BLOG POST ON MINTEREST’S FUNDRAISING PROCESS AND STRATEGY PENNED BY FOUNDER, JOSH ROGERS
Minterest has phenomenal investors behind it. In them, the protocol has a village of supporters, each a working member of Minterest’s tribe, who partner us in delivering the protocol. I’ve been asked by several people how we achieved such an outcome, so I thought it worthwhile to provide a detailed personal perspective.
I’ve been involved in startup fund raising for more than two decades, yet this was my first crypto project. It was something very different to what I knew and in unexpected ways it truly surprised me. I never thought I’d pen a blog remotely like this one about VCs.
An extensive fundraising process
The demand for Minterest was incredible. In the first 5 days we received soft commits for more than the total, and we could have likely wrapped up the raise there and then. Yet, we undertook a 3 month, extensive and intensive process involving nearly 150 separate pitch meetings. We did so deliberately to achieve the outcome we have now; a broad portfolio of stellar investors who are genuine partners, consistently accountable in their support of the team and the protocol.
Fundraising is often a very demanding process on start-up teams. It usually requires many hours of time from key personnel, who are then not able to focus on the business, so early on I partnered with two extraordinary advisors, Joeri van Geelen and Matthew Niemerg. Joeri has an impressive network within crypto, he is highly respected, genuinely liked across the sector and his business development social capital is world class. Matthew is a true blockchain techie, with a Ph.D. in mathematics and a deep comprehension of cross chain architecture. He is highly respected for his capability and is an extraordinarily intelligent man, one I colloquially describe as smarter than a tree full of owls.
Their commitment was unrelenting, Joeri pitched with me late into his night given he was then based in Singapore and Matthew, as he lives in Miami, was up at 4am for months doing the same. David Post, ex-Managing Director of IBM Blockchain Ventures and now Managing Director at Chainlink Labs, was also brilliant as was Simon Schwerin, a partner at leading blockchain thinktank – Iconomy. Kyn Chaturvedi, then CBDO of Tomochain, Vietnam’s largest blockchain project, also joined as an advisor and quickly became the team’s COO.
Our fundraising strategy
In designing any sort of fundraising strategy three fundamental questions need to be answered: why, how much and from whom? Defining why you want the money usually determines how much you need but it’s “from whom” that often influences how successfully the project performs. Great private investors bring enormous value far beyond money. They bring new perspectives, skills, knowledge, networks and act as eyes and ears of the project, keeping it strategically abreast of what is a relentlessly changing environment in crypto.
As a general principle, I prefer not to raise money from the public when the project is in its uncertain early stages. It often places pressure on teams who prioritise seemingly important metrics which cater to the demands of public investors. This pressure may seem beneficial in keeping the team focused but for great people who flourish in high-accountability and delivery-focused work environments, such pressure is unnecessary and counterproductive. It frequently leads to a culture of short-term decision making which could have long-term negative consequences for a protocol like Minterest. Almost always, the team is better served early on by professional investors who, if necessary, can sustain a longer-term view.
I do admit to a competitive advantage in startups, although only one, and which my daughters frequently remind me of; I’m older than everyone else! I’ve been involved in startup fundraising since 1996 and one thing I have learned, is that some investors will promise the world to get an allocation but may not necessarily deliver afterwards, which we absolutely did not want for Minterest.
Fulfilling the ‘village of supporters’ approach meant undertaking an extensive and intensive fundraising process, pitching to as many investors as possible, and then distinguishing those who would best empower the team and the protocol. At the outset we decided our focus would not be to simply secure money and nor was a VC brand terribly important. We wanted a portfolio of investors who would add real, long-term value. That meant crossing off some of the very largest VCs, often found on the US West Coast. The sheer scale of their portfolios meant their minimum investment would be so large that it would dominate the allocations in the private offering, and thus undermine the broad portfolio approach.
What we looked for
TRACK RECORD Investors with stellar track records in being powerful long-term supporters and who could be verified by teams they had already invested in.
LONG TERM VIEW Investors who wouldn’t just flip MNT, but who were true believers in Minterest’s long term future, and so would be part of the journey with the protocol and its user community.
VALUE ADD Investors who had either their own communities we could engage with, or deep commercial experience in crypto with industry networks and/or who would potentially be long-term liquidity providers to the protocol.
Three substantial VCs offered to lead the round; having a large VC leading the raise can be advantageous in many ways. It provides additional credibility for the project and confidence to other investors that the round will close successfully. It also usually speeds up the process, as their presence provides security to others, who will often short circuit their own due diligence, trusting the lead to undertake this professionally on their behalf. The lead investor is also very influential in determining who other investors are, and for us, that was a potential issue given we had our own highly defined investor profile and a firm view on the ideal number of investors we were seeking.
When VCs lead, they usually require very significant allocations; half the raise is not uncommon, and often with significant discounts to the raise price. While many of the aspects of a large VC lead were appealing, it ran counter to our fair and equal ‘village of supporters’ strategy. We had a team highly experienced in fundraising and the internal confidence to run a disciplined program, so we opted to run the process ourselves and thus, turned lead offers down.
I have deep respect for many of the VCs we chose not to include in the round. Some have global, well-respected reputations, but their structure, investment mandates or team priorities did not necessarily align with what we prioritised for Minterest, and this determined our final selection.
A fairer and more inclusive financial system
Minterest ended up with commitments exceeding US$20M, we definitely had the opportunity to raise more than was allocated, and building a lending protocol properly from scratch while keeping an eye on its cross-chain future does require significant time and money. However, Minterest was built to create a fairer and more inclusive financial system and raising money solely from professional investors felt inconsistent with such principles, so we structured the fund raising to take less early on to enable Minterest to include the public later.
Our village of investor supporters
Along the way I met a truly diverse group of people across the planet and discovered that Crypto VCs are nothing like traditional start-up VCs, at least not like many I have encountered. As a rule, crypto VCs are polite, respectful, punctual, generous with their time, happy to introduce other investors and willing to provide high value advice on everything from corporate structuring to treasury operations. They are attentive, passionate, interested, ask intelligent questions, excited about how the project fits into the future of blockchain and actively explore ways they can contribute to its success. Above all, they expect, like all Minterest’s investors, to work hard for their allocation. As I write this, one of them just messaged me saying “Make them work. Don’t give away the goods for a hamburger date and a movie.”
I’ve been doing this for decades and thought I’d seen it all, but it turns out I haven’t. I am genuinely humbled by who Minterest’s tribe of investor supporters are, and for their trust in our team. Who they are, is probably best illustrated by my answer when I was recently asked the question, “Who are your professional mentors?” While I have people that I reach out to for perspective, the real answer, and one which amazed me when I spontaneously said it, is “our investors”.
We have open and forthright conversations about our challenges, we hold nothing back, and the team and I make relentless requests for support, yet no-one flinches. Their support is rock solid and delivered in a myriad of ways, and they consistently deliver well-considered and strategically super smart insights. As CEO, having a network of support like this is spectacularly powerful.
The source of my inspiration is not just what I do, but also, who I do it with. It’s not just the technology I’m passionate about, it’s also the people creating the technology, and to my absolute astonishment, it’s also very much about the people funding it. I’ve been excited about blockchain for years and now due to my recent experiences, I’m proud to say my commitment to crypto mirrors what I see in so many others – it’s locked-in.
So welcome to Minterest, in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewardson top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and shares liquidation surpluses with users.
Minterest is a ground-breaking lending protocol built by industry leaders to service billions in TVL, and to challenge existing DeFi incumbents. The protocol captures significantly more surpluses on-chain than any other DeFi protocol which is an industry first. It passes on these surpluses to its users using a unique protocol-managed buyback process. Lending protocols generate significant value, amounting to hundreds of millions in surpluses each year, but traditionally this has not been passed on to users – until now.
As the next step, the focus is now on building the community and providing private access to the protocol to early participants and supporters.
Backed by billions
The project has secured participation from some of the most experienced players in crypto, each renowned for their experience, extensive communities and/or their ability to tactically bring real value to DeFi projects like Minterest. With combined portfolios amounting to tens of billions, Minterest’s financial supporters represent exceptional leaders in the digital landscape.
Say hello to KR1
KR1 PLC is listed on London’s AQSE Exchange and is a leading European digital asset investment company focused on decentralised and open-source blockchain networks. The company has many foundational projects including Moonbeam, Acala, HydraDX, Astar and Kusama
“It’s important we are always pushing the envelope and improving in order for DeFi to move truly mainstream. Minterest has engineered a great long-term model because everyone gets their fair share of the rewards the protocol generates.”
Say hello to Digital Strategies
Digital Strategies invests in top crypto projects while providing high-touch tactical support including engineering Dapps & tools for their portfolio companies. This includes solutions such as CasperSign (the first Dapp on Casper) & Keeper (a liquidation prevention tool). Their portfolio includes Polymath, Casper Labs, 0x, Hedera Hashgraph and Kylin.
“We love that Minterest has taken the original DeFi ecosystem and made it fairer and more inclusive for its users. In doing so, they ensure that the true beneficiaries are the users who share in all surpluses generated by the protocol. These unique features make it an appealing platform for everyone in the sector. We are excited to be on the journey with the team and supporting the protocol’s evolution and growth.”
Say hello to Digital Finance Group
Digital Finance Group is a global blockchain and digital asset investment firm. Founded in 2015, it manages investments in excess of 1bn AUM, investing in numerous leading blockchain companies including LedgerX, Bloq Circle, and Ripio, among others.
“Minterest has engineered a major improvement in the current DeFi ecosystem by solving issues that exist in legacy DeFi protocols. It’s unique token buy-back mechanism using the protocol’s own surpluses means Minterest passes on protocol rewards to users for their participation in its governance. It’s the first of its kind in DeFi, and a truly sustainable, long-term, model. It’s this kind of innovation that really attracts us as investors.”
Say hello to CMS
CMS is a principal investment firm focused on investments in the crypto-asset ecosystem, seeking to deploy capital in liquid and illiquid crypto tokens, as well as equity stakes in companies such as Solana, Oxygen, Messari and SynFutures.
“Minterest has significantly upped the stakes in the DeFi space. The protocol has solved a pain point that has been in play in the ecosystem from its inception. It has taken the existing DeFi model and recalibrated it to fulfill its original mission – a fairer financial system for all the users. We are thrilled to be on board with this exciting project”.
Learn more about why we have the edge over DeFi platforms here
As a next step, the team behind Minterest is now coming out of stealth mode and turning their attention to those who give the protocol value – its community. Lots of updates are coming soon, with the aim of ensuring users get a fair chance to participate in the protocol’s growth.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically captures and passes on rewards to platform users via its unique on-chain liquidation process. This means that users participate in rewards generated by the protocol, in addition to earning industry leading borrowing/lending rates. This results in potentially the highest long-term yields in DeFi.
Minterest’s unique design means long-term yields are optimisedthanks to a new, fairer structure
Tallinn, Estonia – 16 September 2021 – An experienced team of cryptographers and blockchain industry luminaries have today unveiled Minterest, a value-capturing lending and borrowing protocol designed to make DeFi fairer for users. The reveal of the new protocol follows a recent private fundraising round that saw the team behind the project raise $6.5 million USD from top-tier investors, including KR1, DFG, CMS, DigiStrats, FOMOcraft, Bitscale Capital, PNYX Ventures, CMT Digital and Faculty Capital.
The Minterest protocol allows users to access decentralised token money markets, combined with a uniquely fair incentive structure that will facilitate and promote widespread adoption of DeFi. What sets it apart from DeFi incumbents is that it’s engineered from the ground up to capture the value it generates. By utilising its own buyback mechanism, the protocol passes on 100% of surpluses generated to its community of active participants. A key component of this architecture is its unique liquidation mechanism* which is entirely managed by the protocol rather than being delegated to external parties.
Lending protocols generate significant value, but traditionally such value has not been passed on to users. Existing lending protocols reward users in two key ways. Firstly, through various forms of token issuance via liquidity mining to incentivise use. Secondly, through the liquidation process which is available only to a very small and sophisticated group of users who take out the positions of under-collateralised borrowers at a market discount.
In an industry first approach, the Minterest protocol undertakes liquidation processes automatically, without the need for external liquidators, and so captures all fees , including interest, flash loan and liquidation fees On other lending protocols this value is usually extracted from the network for the benefit of a privileged few.
Uniquely, Minterest uses its operating surplus to auto-acquire the protocol’s native MNT token on-market and then passes it on to its users. This means the protocol user’s rewards from surpluses generated by the utility of the protocol combine to potentially give the highest long-term yields in DeFi.
Josh Rogers, Founder of Minterest said: “The success of the blockchain industry continues to take everyone by surprise. Increasingly, however, we are seeing players lose sight of the original motivation and what caused such success in decentralised digital economies. The Minterest protocol recaptures crypto’s vision of creating a fairer, more egalitarian financial system with a new DeFi model that generates value for the entire user ecosystem, instead of extracting it only for the few, and in doing so, it intentionally challenges existing sector leaders.
“DeFi’s current total TVL of nearly 170 billion USD accounts for approximately as little as around 5% of the world’s crypto assets. With significant and sustained crypto growth and the vast majority of crypto value yet to earn returns, DeFi is very much in its infancy and represents a massive opportunity for crypto investors. Today’s DeFi lending and borrowing protocols have inflationary token models, don’t capture or pass on the value the protocol generates, often lack cross-chain capabilities, and offer an overly complex user experience. Minterest changes that. Through their interactions, users create the value on the platform therefore making their participation equitable and rewarding. Without its community, any protocol would be obsolete, and our model places our community at the centre of the value-creation cycle.”
Minterest Protocol’s design operates on the principle of flywheel tokenomics, building a self-reinforcing cycle of value into the platform. The more value created and captured within the protocol, the more value is passed on to users, improving total Annual Percentage Yield (APY). This makes it more attractive to become a liquidity provider to Minterest, thereby attracting new users and over time, exponentially increasing the overall value of the protocol.
The Minterest protocol will be audited by highly regarded auditors in the blockchain space prior to its early access phase, underpinning network security and giving users the confidence required to fully participate.
James Wo, Founder and CEO of investor DFG (Digital Finance Group) said: “Minterest has engineered a major improvement in the current DeFi ecosystem by solving issues that exist in legacy DeFi protocols. Its unique token buy-back mechanism using the protocol’s own surpluses means Minterest passes on protocol rewards to users for their participation in its governance. It’s the first of its kind in DeFi, and a truly sustainable, long-term, model. It’s this kind of innovation that really attracts us as investors.”
Eric Weiss, Partner at Digital Strategies highlighted: “We love that Minterest has taken the original DeFi ecosystem and made it fairer and more inclusive for its users. In doing so, they ensure that the true beneficiaries are the users who share in all surpluses generated by the protocol. These unique features make it an appealing platform for everyone in the sector. We are excited to be on the journey with the team and supporting the protocol’s evolution and growth.”
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on the protocol surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation rewards with users.
*Note that Minterest’s Autoliquidation Engine has been renamed to Solvency Engine.
Minterest is a ground-breaking lending protocol built by industry leaders to service billions in TVL, and to challenge existing DeFi incumbents. The protocol captures significantly more surpluses on-chain than any other DeFi protocol, which is an industry first. It passes on these rewards to its users using a unique protocol-managed buyback process. Lending protocols generate significant value, amounting to hundreds of millions in surpluses each year, but traditionally this has not been passed on to users – until now.
Doing things differently
To understand how Minterest does things differently, it’s worth looking at how existing protocols operate in the current DeFi ecosystem. Lending protocols reward users in two key ways. Firstly, through various forms of token issuance, which reward liquidity mining to incentivise protocol use. Secondly, a very small, sophisticated group of users known as liquidators gets rewards when they take out the positions of under collateralised borrowers at discounts to market.
Making rewards equitable
In addition to rewards from liquidation fees, protocols generate substantial value in the form of flash loans and interest rate differentials which is the difference between what a lender receives and a borrower pays. A significant amount of this value is generally ‘bled’ off the protocol in various guises, and almost always, solely for the benefit of the protocol’s developers or their shareholders. This means the ecosystem of users who create the protocol’s value don’t directly benefit from such value creation. It is for this reason that the Minterest protocol aims to turn the entire DeFi lending model on its head.
A protocol’s value is generated by the users
Minterest recognises that the value of any protocol is created by the activity of its users and that a platform without users is worthless. The extraordinary market caps of existing DeFi platforms are directly correlated to their significant ecosystems of users, and the value created by their associated TVL. Minterest’s protocol’s rewards have been engineered for the benefit of potentially all users and not just a select few
World‘s first on-chain treasury
At Minterest’s core are world’s first on-chain treasury functions in which the protocol undertakes processes normally reserved for external third parties. This means Minterest executes liquidation processes automatically, without the need for external liquidators, and by doing so, captures fee income normally lost from the protocol, while additionally capturing interest income and flash loan fee income.
Passing on the rewards to users
Minterest uses this combined surplus to auto-acquire the protocol’s native MNT token on-market and then passes it onto the protocol’s users, particularly rewarding those who supply their liquidity and stake MNT tokens in the protocol’s governance processes over time. There is no time lock, so users may withdraw their assets whenever they wish, but those who provide their liquidity and MNT tokens over time, will receive an ever-increasing loyalty reward i.e., their percentage of the protocol’s rewards increases month to month.
The highest long-term yields in the industry
So why does that matter? It means Minterest delivers the highest long-term yields in DeFi, and the protocol’s design gets real about why DeFi matters– providing equitable and fair finance for all. We are proud we are supporting the crypto community to share in a greater source of value, and that Minterest is the world’s first DeFi protocol to operate such a model. The protocol is also backed by a team of incredible, highly talented crypto investors whose impressive CVs reflect their credentials, know-how and values. So welcome to Minterest. It’s in your best interest
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses to users.
When you explore DeFi lending, there’s an enormous degree of opacity when it comes to liquidations. Lenders and borrowers are not given enough detailed information to truly understand their risk profile. At best, users are expected to judge what can be very significant and sometimes complex lending portfolios, with a simplistic traffic light risk analysis system. They are expected to use green, orange and red markers to assess their risk profile, without actually truly understanding what the colour codes mean.
The tension between solvency and service
Even a layperson would be able to see that this is not operating in people’s best interests. If you view DeFi lenders through a critical lens, it’s easy to conclude that the major beneficiaries are not the users but a select group who are benefitting from opportunistic liquidation practices.
So why the lack of information? Incumbent DeFi protocols have significant tension between properly serving their users and ensuring protocol solvency. Continued solvency means always having enough liquidators circling the protocol to undertake liquidation events, especially during periods of high price volatility. That means, not just making sure liquidation fees are good enough for liquidators but also ensuring liquidation events consistently occur to ensure there will be a steady flow.
The inclusion of external liquidators surfaces a fundamental conflict; DeFi protocols can’t authentically and committedly protect their users from liquidations because doing this too well, may result in not enough liquidators being available with their liquidity in periods of high price volatility. Not enough liquidators and liquidity being available during such circumstances threatens the protocol’s solvency. Instead, such protocols provide just enough data and functionality to ensure they look like they’re protecting users from liquidations but not enough to really do the job properly. The conflicting nature of such architectural design means its liquidation functions are in themselves predatory and also means that users will likely more often have their portfolios liquidated.
How Minterest eliminates conflict of interest
Minterest eliminates the conflict of interest because there are no external liquidators lurking in the shadows eager to profit from liquidation of user portfolios. The Minterest protocol manages liquidation functions automatically.
The key benefit beyond the protocol capturing all liquidation fee value, is that Minterest doesn’t need a community of liquidators constantly circling it, acting somewhat like DeFi killer whales seeking out weakened seals. It means Minterest can instead authentically serve its users and truly look after their best interests without compromising the protocol’s solvency.
The Dashboard
In an industry first, Minterest’s UI includes a full dashboard for each user, providing extensive liquidation risk data and analysis based on their current portfolio and past market history. It even maps out people’s current collateral borrowing positions against previous price volatility, giving real clarity to what their potential future risk positions may be.
Further, as a user proceeds to add more lending or borrowing to their portfolio, the Minterest interface provides a real-time analysis of the risk impact that their planned action will have on their portfolio. This allows users to analyse their plans and make informed decisions about their portfolio risk before they enter new positions. The Minterest protocol is designed and built to serve the interests of its users, with the intention to help them be as successful as possible in their DeFi investments.
Providing Insights into governance rewards systems
Additionally, the dashboard gives users detailed insights into the protocol’s governance rewards system. The protocol passes on 100% of its surpluses in return for users participating in its governance. It does this by using the value it captures from the combination of interest rate, flash loan fees and liquidation surpluses to acquire MNT on-market. The protocol even increases these rewards month on month, rewarding loyalty and incentivising user liquidity provision over the long term, with the dashboard providing both historical and predictive data to further underpin people’s confidence in their decision making processes.
All this adds up to one incredibly valuable proposition, looking after people by giving them greater certainty that the Minterest protocol truly provides them the highest long-term yields in the most secure, sustainable and transparent way possible.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses with users.
Minterest is not just another lending protocol. What sets it apart from DeFi incumbents is that it’s engineered from the ground up to capture the value it generates, and then via its own buy back mechanism, enable users to participate in 100% of this value. A key component to this architecture is its unique liquidation process* which is entirely managed by the protocol rather than engaging external parties who manage these processes.
About liquidators
In the existing architecture of DeFi incumbents, liquidations are undertaken by third parties who operate externally to the protocol in a somewhat predatory fashion. Liquidators are sophisticated users with deep pockets and tend to be professional DeFi investors. Many of them are Venture Capital firms, and while relatively small in number, they have to date, played a significant role in the DeFi universe.
How liquidators operate
Simply put, liquidators wait for protocol borrowers to become under-collateralised. When this occurs, the loan is repaid by the liquidator in exchange for the borrower’s collateral. To incentivize the liquidators to do this, an additional fee is extracted from the borrower through their loan’s conversion being done at substantial discounts to market rates and it is this ‘discount’ which the liquidator earns to incentivize them to participate. The total liquidation fees earned across DeFi are staggering, and this value is captured exclusively by a small number of sophisticated, wealthy users without the general community being beneficiaries and yet, it is the users who create the majority of the protocol’s value.
Leading with innovation
What Minterest does is completely different. To date, no one has figured out how to create an on-chain solvency check and liquidation process that passes the value from the liquidation event back to the protocol’s users. This is a key point of departure for Minterest – where other protocols have this value extracted from the protocol, the Minterest protocol passes the value onto its users. The liquidation function has been built into the protocol, it manages solvency, undertakes liquidation events and rebalances the protocol liquidation pools; constantly autonomously and consistently.
Users participate in 100% of the protocol’s rewards
Since there are no third-party liquidators involved, the protocol is the sole beneficiary of liquidation fees generated from such processes. It then distributes this captured value, in combination with interest rate and flash loan fees, to the protocol’s users. This means that Minterest users participate in 100% of the value the protocol generates, and this results in the protocol delivering superior long term APY/APRs for users, outcompeting all other DeFi lending platforms in the sector.
A fairer finance system
So, when it comes to liquidations, how much value are we talking about? Firstly, transparent liquidation data is never communicated by liquidators. The extent of the returns generated requires significant research and a sophisticated ability to scrape and interpret blockchain data, which is expertise that the team behind Minterest certainly has. Competitors publicly state that their protocols earn up to $3M a week in liquidations, and some liquidators to date have earned in excess of $50M.
What’s indisputable is that total annualised fees in DeFi are currently measured in the hundreds of millions. If a protocol’s general community were able to share in this value, ordinary users would have realised significant benefits as opposed to only a small pool of wealthy liquidators. Eliminating this practise is what the Minterest protocol is about, creating a fair and equitable system for all its community.
Transparency from day one
A fair finance system doesn’t need opacity, high ticket offices or impenetrable data, It starts and ends with transparency. This is why Minterest will share all the protocol’s data from day one, since it’s the only way to build and maintain trust, not only in our community but DeFi as a whole.
Transforming financial services across the spectrum
The promise of DeFi will quite possibly transform financial services across the spectrum, and this will benefit everybody. As the iconic documentary “Banking on Bitcoin” stated, “there is an ideological battle underway between fringe utopists and mainstream capitalism”. In DeFi fringe utopists have come and gone and mainstream capitalism has most certainly had a go at the crypto movement. Minterest is designed to do and be something different, DeFi’s Goldilocks of sorts, to sit sustainably in between legacy and innovation.
About Minterest
Minterest is a unique borrowing/lending protocol built by industry leaders to service the billions in Total Value Locked (TVL), in DeFi lending projects, with the specific aim of putting user benefits at its core. It provides users with a decentralised financial platform that is fair and inclusive.
The Minterest protocol has the world’s first buyback mechanism, which automatically passes on surpluses to contributing platform users. This way, users receive protocol rewards on top of industry leading borrowing/lending rates, creating the potential for the highest long-term yields in DeFi. The protocol also has an on-chain treasury which captures and passes on liquidation surpluses with users.
*Note that Minterest’s Autoliquidation Engine has been renamed to Solvency Engine.
10, September 2021
Tech Insights
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