Interest Protocol – a project to keep your eyes on | community call tomorrow on TG

Our project aims to revolutionize the world of decentralized finance by offering:

• DEX with low slippage costs

• Borrow a stablecoin for free (0% interest rate) – Dinero

• Use LP tokens as collateral to borrow Dinero

• Use automated investment strategies

Interest Protocol is a project that we all should keep our eyes on. They have just released their new landing page where you can find their testnet DApp. https://www.interestprotocol.com/

TG: https://t.me/interestprotocol

Important: We will have a community call on August 7th on our Telegram channel to discuss about our DEX and receive feedback from our community members.

Interest protocol DEX is live here: https://www.interestprotocol.com/dapp/dex (Test net)

Dinero (stablecoin)

In case the users of LP tokens decide to borrow Dinero,, their loan will have a zero interest-rate cost, which makes their loan a net positive loan. If you borrow $1000 you pay no interest-rate while your collateral will be farmed. BIG WIN to all.

Example: users can use their LP tokens such as USDC-ETH as collateral to borrow Dinero then swap Dinero for other tokens.

If you are liquidity provider for a DEX……

Liquidity providers suffer from a huge problem, which is the lack of liquidity that they have to buy other assets with their LP Tokens. In other words they cannot use their LP tokens as medium of exchange. To solve that problem Interest Protocol will allow liquidity providers to use their LP tokens as collateral to borrow their stablecoin, Dinero.

DEX

The project will also launch their own DEX that will benefit from the liquidity provided by liquidity providers, which will allow their DEX to have low slippage cost. Basically 0% interest rate loans using LP tokens as collateral will attract many liquidity providers.

Automated investment strategies

They also will have a vault that will make automated investments for your tokens. For example, if you deposit you ETH there it will find the best ways to invest your asset for you without having you to worry about anything.

Community call

They are doing this Saturday, their first community call at 9PM GMT+1 which will be the first time that the team will get in contact with their community.

Long read

Please check what Interest Protocol just posted.

“Summary

Interest Protocol allows decentralized exchange liquidity providers to borrow Dinero, a stablecoin, at no cost.

What is the Interest Protocol?

Interest Protocol is a non-custodial trading and lending solution built around Dinero, a stablecoin.

Main problem?

Liquidity providers have limited financing options to use their LP tokens as collateral. This is a lot of illiquid capital, when one considers the TVL of major protocols like Uniswap, Pancake Swap, Biswap, and many others. Therefore, they often incur impermanent losses and abdicate their rewards to meet short term financial needs. The Binance launchpool events are a perfect example. Imagine you have 10,000 USD worth of LP tokens on PancakeSwap, and you have no BNB. Your only option is to incur an impermanent loss to remove your LP tokens to swap the underlying tokens for BNB to join the launch pool. During this period, you are losing farming rewards and you are exposed to BNB’s market risk. Once the launch pool finishes, BNB’s price might be comparatively lower than the tokens you need to rebuild your LP tokens.

How will we solve this problem?

On Interest Protocol, liquidity providers will be able to use their LP tokens as collateral to borrow a stablecoin, Dinero. During the loan, their collateral is accruing rewards.

This service will be available for LP tokens obtained via the Interest Protocol DEX, and over time we will include LP tokens from Pancake Swap and Biswap. The advantage of using LP tokens from the Interest Protocol DEX is to enjoy a 0% interest rate when borrowing Dinero.

How does it work ?

Decentralized exchange

The Interest Protocol DEX provides two types of markets: volatile and stable.

Volatile markets are designed to support uncorrelated assets such as BNB and BTC; while stable markets are designed to support correlated assets such as BUSD and USDC.

Users can start earning trading fees by supplying liquidity to a market. For example, users can deposit BNB and BTC to the BNB/BTC market to receive BNB/BTC LP tokens. These are yield-generating tokens, which accrue trading fees by simply holding them. As an extra incentive for supporting the protocol and to offset impermanent losses, users can deposit their LP tokens in a farm to start earning IPX tokens, the governance token of Interest Protocol.

Dinero Lending Market

Users who wish to obtain extra capital while supplying liquidity to our DEX, can use their LPs as collateral in the Dinero Markets.

After obtaining the LP tokens, the user can use them as collateral to borrow the stablecoin Dinero. The lending contract will take custody of the LP tokens and deposit them on a farm. Therefore, Dinero borrowers do not lose any rewards while borrowing!

For instance, if a user wishes to borrow 5000 DNR, he/she needs to deposit LP tokens with a minimum value of 10.000 USD as collateral, assuming that the market has an LTV of 50% (Loan to Value). This service has no fees for LP tokens from Interest Protocol DEX.

Vaults

The Dinero LP vault on Interest Protocol allows users to farm stable pairs with 2x leverage, no liquidation risk, and negligible impermanent loss. Stable pairs are markets composed of stablecoins.

When a user deposits USDC, the vault will mint an equivalent amount in DNR and supply the tokens to the USDC/DNR market and deposit the newly obtained LP tokens on a farm. For example, if a user deposits 500 USDC, he ends up with a 1000 USD position of USDC/DNR farming IPX and earning trading fees. Additional vaults will be developed to allow Interest Protocol users to maximize their profits with one click.

Why Interest Protocol?

• Secure lending markets for LP tokens without sacrificing profits

• Free stablecoin loans

• DEX with low slippage and trading costs

• High yield stablecoin strategies through our vaults.

We believe that Interest Protocol will bring a new way of making money to the DeFi space through credit and passive income solutions.

For more information, visit our website and check our Docs.

Twitter: https://twitter.com/interest_dinero

Medium: https://medium.com/@interestprotocol

Reddit: https://www.reddit.com/user/interest_protocol

Telegram: https://t.me/interestprotocol

Discord: https://discord.com/invite/PJEkqM4Crk

GitBook: https://docs.interestprotocol.com/

GitHub: https://github.com/interest-protocol/

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