Estonian ‘auto liquidation’ DeFi platform Minterest raises $6.5M

Decentralized Financial Log Minterest just secured $ 6.5 million in funding for a platform that optimizes long-term profits.

Several venture capital firms contributed to the private funding round, including KR1, DigiStrats, Bitscale Capital, PNYX Ventures, CMT Digital, etc.

The Estonia-based team intends to use the funds to develop a credit and borrowing protocol that it claims is “presented to make DeFi fairer to users.” Minterest uses an acquisition mechanism to capture the value and pass any revenue generated by the platform to its community.

It automates the liquidation process so that fees and interest can be returned to the user. Some DeFi protocols generate revenue by allowing a small number of users to buy closed positions at a discount in the market.

Minterest will use any operating surplus to automatically purchase its own native MNT tokens, which will then be distributed to its users, according to an announcement. The protocol was designed to work with a “tokenomics flywheel,” which means the resulting value is passed back to the system to generate more value. In this way, the user-generated income is complemented by some of the protocol’s rewards and revenues, potentially generating higher long-term profits.

Minterest founder and CEO Josh Rogers explain that this new DeFi project is creating value for the entire user ecosystem rather than extracting it for just a few, adding:

“It is through their interactions that users create value on the platform, which makes their engagement fair and rewarding. Without its community, any protocol would be obsolete, and our model puts our community at the center of the value cycle. “

The protocol will be “tested by highly respected experts,” he added but did not give a start date.

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The new protocol shares its name with a Singapore-based digital investment platform that was founded in 2017. Minterest Southeast Asia is traditionally funded to provide clients with access to alternative investments and diversified investment opportunities.

In other funding news, the Avalanche Foundation announced a massive $ 230 million investment from a venture capital group led by Polychain and Three Arrows Capital on Sept. 16. It aims to channel funds to support the development of the DeFi ecosystem and the projects running on its blockchain.