Interest Protocol Ico Review: It Is Legit Or Scam Ico?

About Interest Protocol

Launched on June 13th, 2022, Interest Protocol (IP) is the first fractional reserve banking protocol on the Ethereum blockchain that pays interest to all depositors. USDi is an over-collateralized stablecoin issued by Interest Protocol. IPT is the governance token of Interest Protocol.

Users can mint 1 USDi by depositing 1 USDC into the protocol, and anyone can receive 1 USDC from the protocol by burning 1 USDi that they hold. In addition, users can deposit assets into a multi-collateral vault and borrow USDi against that collateral.

Regardless of how they obtained USDi, all USDi holders automatically earn yield without having to spend gas to stake. Given the same amount of capital, Interest Protocol can generate more loans with less liquidity risk than existing lending protocols without fractional reserves.

Interest Protocol.io automatically manages its reserve ratio—USDC in the protocol’s reserve over the total supply of USDi—by employing a variable interest rate system. As the reserve ratio decreases, the borrow and deposit rates of USDi increase, and vice versa.

Token Basic Information

IP’s stablecoin USDi is scalable, over-collateralized, and accrues yield without staking.

Stable

USDi maintains peg under adverse conditions, without any intervention.

Community Led

Built for you, led by you. Your participation creates the future of finance.

Transparent

Everything from contract to interface is FOSS, and we mean it.

Values

1. Efficiency

Capital flows to capital-efficient protocols. Interest Protocol’s improved risk management, automated rate adjustments, and superior terms make it the most capital-efficient lending protocol.

2. Adaptability

Community is the bedrock of Interest Protocol. A keep-it-simple approach to concepts and code encourages participation, leading to a vibrant community and an adaptable protocol.

3. Transparency

Anyone can audit Interest Protocol’s finances on-chain. The whitepaper and docs explain how Interest Protocol works, the risks involved, and governance processes. Nothing is hidden.

Governance

While many operations of Interest Protocol happen automatically on-chain, the protocol relies on governance actions for any maintenance or upgrades. For example, the protocol automatically sets the interest rate as a function of the reserve ratio, but this function itself may need to be updated from time to time in response to secular market trends. Similarly, while users can permissionlessly borrow USDi against registered collateral as-sets, the protocol may wish to register a new asset as collateral.

Interest Protocol’s governance is controlled by a decentralized autonomous organi-zation, which they call Interest Protocol DAO (IP DAO). IP DAO manages the smart contracts associated with the protocol by updating parameters or upgrading contracts. Interest Protocol Token (IPT) is the governance token of the protocol. When the DAO votes on a proposal, one IPT represents one vote. IPT will be distributed to the community through a public sale, liquidity mining programs, and other methods.

Emergency Pause

To protect the protocol and its users against unforeseen risks, Governance is given the ability to designate an address as a Pauser. The Pauser can disable and re-enable certain protocol functions, such as deposits, withdraws, liquidations, borrowing, and repaying. Initially, the Pauser will be a multiset controlled by GFX Labs. However, that multi-sig, and any thereafter, can only pause the protocol in one of the following circumstances

Who Built Interest Protocol?

Interest Protocol was developed by GFX Labs. GFX Labs started in 2021 with the goal of building web 3 applications that facilitate ownership and improve usability.

How Many IPT Tokens Are There in Circulation?

There are 100 million IPT tokens in existence. 20% of this will be unissued and held in the protocol treasury. Through governance proposals, IPT holders can collectively decide to mint additional IPT tokens.