Minterest Raises $6.5 Million to Build a Value-Capturing Protocol
- Minterest’s automatic liquidation mechanism will capture more value, allowing the protocol to buy back its native MNT token.
- All of the revenue generated through the buybacks and unique fee structure will be distributed to Minterest users.
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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.
- An investigation from the New York Attorney General’s office has allegedly found that Gemini was aware of Genesis’ weak financial position, but still lied to investors.
- The lawsuit is looking to ban DCG, Genesis, and Gemini from the New York financial industry, seek restitutions for investments, and the return of “ill-gotten gains”.
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- Bankrupt crypto lender Genesis is trying to recover around $500 million from DCG, and another 4,550.5 BTC from DCGI, which it had loaned to the two companies in 2022.
- Both DCG and DCGI requested that the debts were converted to open loans on 9 May, but Genesis declined both offers and demanded the repayment of the loans with interest.
- Genesis reached an “agreement in principle” with DCG and its creditors back in February, which would have seen creditors recover roughly 80% of their funds.
- A group of creditors has now moved away from that agreement, forcing Genesis to request a court appointed bankruptcy mediator.