Interest Protocol

Interest Protocol is a borrow/lend protocol that adapts the fractional reserve system of banks to a DeFi protocol. Instead of posting houses as collateral and borrowing dollars, Interest Protocol users post wETH, wBTC, and UNI as collateral and borrow a stablecoin called USDi, and instead of depositing dollars into a bank and earning next to nothing in interest, Interest Protocol users deposit USDC into the protocol and receive the lion’s share of the interest paid by borrowers. While we have improved upon all of the core pieces of a borrow/lend protocol, such as the price oracle system, the liquidation mechanism, and the collateral system, Interest Protocol’s main innovation is the capital efficiency that comes from lending out its own stablecoin. Interest Protocol combines the capital efficiency of the fractional reserve system with the safety of over-collateralized loans.