Mars Protocol launches on the Terra Network with a community governance model called the Martian Council.
The Red Bank
Mars Protocol, a revolutionary, non-custodial on-chain credit protocol that is community governed, is launched on the Terra blockchain. Mars currently supports $LUNA and $UST for borrowing and lending.
Stakeholders on the platform consist of lenders, borrowers, and the Martian Council. The protocol offers a two-slope rate model that is deployed in Aave and Compound. This function aims to incentivize liquidity providers as liquidity drops to near zero by increasing interest rates sharply once capital allocation surpasses 80%.
Central to its ecosystem is the Red Bank, a set of smart contracts where users can deposit assets for fees generated through borrowings. It is a non-custodial and over collateralized borrowing. This is called Contract-to Borrower (C2B) lending.
The Field of Mars is a Contract-to-Contract (C2C) borrowing that allows for the protocol to tap into a new source of borrowing demand. This is for non-depositor borrowers. It will generate a higher demand and utilization rate, which in turn provides better yield for Mars lenders.
Mars DAO
Mars is a protocol that promises governance by its community. Members of the community can be a Martian Council member by holding xMARS tokens. xMARS is obtained by staking $MARS tokens into the protocol. Each xMARS token is worth 1 unit of voting power.
Eligibility to vote is ownership of the xMARS token 1 block before the proposal is submitted. Only xMARS holders can submit proposals. Council members will be directly affected by the outcome of the decision, both negative or positive. A positive outcome will be rewarded and a negative outcome may lead to 30% of the staked tokens being sold in the event of any shortfall.
Self Sustaining Model
Mars is a platform that places its users at the epicenter of its protocol. Anyone can participate in its governance by being a member of the Martian Council.
Interested parties can also propose a new Red Bank asset listing to the Mars governance forum. The proposer will then submit a Mars Improve Proposal (MIP) for on-chain voting if the new proposed asset receives positive response by the community.
The Mars platform has a high degree of composability. The autonomy to decide on the direction of the platform rests ultimately with its stakeholders.
What is the Mars Protocol?
Mars Protocol is a lending protocol on the Terra blockchain. It is a non-custodial, open-source, transparent, algorithmic, and community-governed protocol. The protocol is the first protocol on the Terra network to provide for collateralized and uncollateralized borrowing.
The protocol is governed by a Martian Council consisting of members that hold the xMARS tokens. Mars Protocol’s official links are provided below.
Where to find Mars Protocol:
Site | Twitter | Discord | Documentation | Medium | Telegram
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