Interest Protocol
What is Interest Protocol?
Is a non-custodial trading and lending solution built around Dinero, a stablecoin. It allows decentralized exchange liquidity providers to borrow a stablecoin at no cost, unlocking the potential of their LP tokens.
Why Interest Protocol?
Liquidity providers often face limited financing options and incur impermanent losses. Interest Protocol offers a solution by allowing LP tokens to be used as collateral for borrowing Dinero, while still earning rewards from their collateral.
How Does It Work?
On Interest Protocol, you can use your LP tokens from the Interest Protocol DEX as collateral to borrow Dinero with a 0% interest rate. This means your collateral continues to earn rewards while you borrow against it.
Interest Protocol DEX
The Interest Protocol DEX allows users to create pools, add/remove liquidity, and swap assets. It supports both traditional Uniswap V2 pools and will soon integrate Uniswap V3-style concentrated liquidity pools for more efficient trading.
Key Components
Automated Market Maker (AMM):
— Trades are conducted directly from liquidity pools.
— Liquidity Providers (LPs): Provide assets to pools and receive LP tokens. — Price Determination: Dynamic pricing ensures continuous liquidity.
— Fees and Rewards: Distributed to LPs, incentivizing liquidity maintenance.Managing Risks
Price Impact and Slippage: — Real-time estimates and slippage tolerance settings protect against unfavorable price changes. — Impermanent Loss: LPs should be aware of the potential risks compared to holding assets in a wallet.
Language and code
Move Language and CodeInterest Protocol leverages the Move language for secure and efficient smart contracts.
Specific code can be found in GitHub repositoryCreating Custom Coins
With Interest Protocol, creating custom coins on the Movement Labs Network is simple and fast. No need for complex setups — just provide basic information about your coin, and you’re good to go!
Ensure you have the latest version of Sui binaries. Run tests and publish your code with ease. Our repo structure includes assets, contracts, scripts, and integration guidelines for both testnet and mainnet. Dive into the future of DeFi with Interest Protocol and unlock the full potential of your liquidity. Stay tuned for more updates!
