Interest Protocol

Interest Protocol aims to increase access to financial services by offering a fair and transparent lending market accessible to anyone with an internet connection. It seeks to enhance the efficiency of financial services by providing higher interest rates to depositors and lower rates to borrowers through its decentralized and automated platform.

Users can participate by depositing USDC to mint USDi and earn interest, or by posting collateral to borrow USDi. Additionally, holding IPT tokens allows users to engage in protocol governance by creating and voting on proposals.

Interest Protocol's fractional reserve model allows for more efficient capital utilization and reduced liquidity risk. Its automatic yield accrual for USDi holders eliminates the need for staking, enhancing user experience. The integration of governance tokens as collateral enables borrowers to maintain participation in protocol governance while leveraging their assets.

Interest Protocol has undergone multiple audits by reputable firms such as Dedaub and Sigma Prime, with no critical issues found. The protocol employs smart contracts and robust auditing practices to minimize risks associated with digital asset transactions.

As with any DeFi platform, risks include smart contract vulnerabilities, market volatility, and potential liquidity issues. Interest Protocol mitigates these risks through thorough audits, a reactive interest rate system, and a liquidation mechanism designed to protect depositors.