General
Interest Protocol is a one-stop DeFi shop that allows users to Swap, Lend, Borrow, and Farm.
Interest Protocol consists of 2 core synergistic products:
- AMM DEX
- Money Market Protocol
“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 other users can freely swap their tokens. And in return, they suffer a loss for their service instead of being rewarded for it.
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 changes of the assets provided. Furthermore, most of the tokens allocated to DEXs for liquidity are not traded, which makes the entire process quite capital inefficient. As a result, millions of dollars are sitting in DEXs doing nothing.
Solution
On the Interest Protocol, liquidity providers can deposit their out-of-range liquidity on the Money Market Protocol to earn the interest rate paid by borrowers.
Concentrated Liquidity AMMs divide the pool into price ranges to mimic an order book. When the price of a coin moves out of range, the entire liquidity in the range gets converted into a single coin. On Interest Protocol, LPs can move their position to the money market until the price returns to their desired range. Once the price returns, the DEX withdraws the deposit from the Money Market. At the moment, LPs have to keep adjusting their position or earn no fees.
Cheap & Fast: High transaction costs prevent small investors from joining DeFi as some strategies become unprofitable.
Move Language: It addresses many security problems with solidity, such as the need to approve a token before transferring to a dApp, and reentrancy attacks, and it is more expression allowing developers to write applications with less lines of code.
Object Model: Assets in Move are first-class citizens. For example, tokens on Ethereum are a number in a contract. On Sui, it is an asset in your account. More importantly, it allows objects to be dynamically updated on-chain. You can add new functionality on the fly on any asset on Sui.
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 as well as participate in our incentivization programs, where they can win special Discord roles and even IPX Tokens - become part of our community today with by completing tasks on our Zealy!
- 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 SUI Dollar.
- Traders can freely trade assets in our DEX.
- Liquidators maintain the stability of the protocol by repaying under the water positions for profit.
Last modified 2mo ago