General

Problem

To quote this article.
“The average liquidity provider (LP) in the Uniswap V3 ecosystem has been financially harmed by their choice of activities and would have been more profitable simply holding their assets.”
The whole incentive system for liquidity providers is broken. They are the lifeblood of DEXs. It is thanks to them that others users can freely swap their tokens. And in return, they suffer a loss for their service instead of being rewarded for it.

Why Interest Protocol?

Interest Protocol addresses two issues with liquidity provider tokens minted by automated market maker decentralized exchanges. Most of the tokens allocated to DEXs for liquidity are not traded, which makes the entire process quite capital inefficient. Millions of dollars are sitting in DEXs doing nothing.
The second issue is the impermanent loss liquidity providers incur. Liquidity providers rent out their tokens to DEXs so users can swap tokens in exchange for a profit. However, most of the markets in DEXs are unprofitable for liquidity providers due to the price change of the asses provided. On Interest Protocol liquidity providers can use their LP tokens as collateral to borrow Dinero, an overcollateralized stablecoin. This allows them to invest this loan in other instruments such as other DeFi dApps, NFTs, long cryptocurrencies, etc... The proceeds from investing the borrowed money, coupled with the fact that these loans have no cost and the collateral tokens keep accruing rewards, make it quite easy to offset the impermanent losses.
It also unlocks the trapped liquidity in DEXs, making the whole DeFi space more liquid.

Why BSC Chain?

Interest protocol opted to start on the Binance Smart chain to benefit from the fast and low-cost transactions. DeFi applications suffer greatly from high transaction fees as many investment strategies become unprofitable for smaller investors.
BNB Chain also provides a myriad of benefits to dApp developers, such as refund on contract deployment costs and customer support for users.
Over time, we plan to deploy in other EVM chains, such as Ethereum and Polygon.

How to Participate in Interest Protocol

Users of the Interest Protocol can participate as liquidity providers, borrowers, traders, or/and community members.
Community Members can join our channels to discuss and propose improvements to Interest Protocol!
Liquidity providers can earn interest fees and Interest Tokens by providing liquidity to our DEX.
Borrowers can deposit assets as collateral and borrow our stable coin Dinero.
Traders can freely trade assets in our DEX.
Liquidators maintain the stability of the protocol by repaying under the water positions for profit.
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Problem
Why Interest Protocol?
Why BSC Chain?
How to Participate in Interest Protocol