Minterest announced it has completed a $6.5 million private fundraising round to build a value-capturing lending and borrowing protocol. According to a press release published on 16 September, KR1, DFG, CMS, DigiStrats, FOMOcraft, Bitscale Capital, PNYX Ventures, CMT Digital, and Faculty Capital participated in the round.
The funds will be used to further develop and launch the Minterest protocol, which provides users with decentralized token money markets with a fair incentive structure. The team behind Minterest said the lending protocols were designed to generate value, but often fail to pass on the value to the protocol’s users.
What will set Minterest apart from the rest is that it will pass on 100% of its revenue to the community. 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. This means the protocol will be able to capture all fee income — including interest, flash loan, and liquidation fees.
Minterest will use the operating surplus this mechanism generates to buy back the protocol’s native MNT token on the market and distribute it to its users. Josh Rogers, the Founder and CEO of Minterest, said the protocol was designed to create a fairer, more egalitarian financial system and challenge existing sector leaders.
“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,” he said in the company’s press release.