The Impact

One of the most crucial primitives of any DeFi ecosystem is credit functionality. Until now, on-chain credit protocols with overcollateralized loans have emerged as the winning architecture to achieve this in a decentralized, non-custodial way. Like existing credit protocols, Mars' interest rates are priced algorithmically based on utilization rate and launched with a standard, two-slope rate model (similar to Aave or Compound).
In addition, Mars brings outstanding improvements in several key areas: 
Contract-to-Contract (C2C) lending, allowing for uncollateralized loans and options for leveraged yield farming
Dynamic interest rate model based on control theory, allowing for greater responsiveness and capital efficiency, which is expected to be activated in the future (contingent on governance approval)
Advanced charting and analytics for depositors and borrowers
Outstanding user experience and design work to make Mars as elegant and straightforward to interact with as possible
In short, Mars is a next-generation credit protocol for Terra that was built to improve on the collateral and design constraints of existing protocols. Mars Protocol will be the foundation for a new constellation of not just financial products but of governance and collaboration, too. We aim to seed life on a new planet… one that takes the best of the old world and uses it to build something radically new.

Mars Onboarding

The Vision

Last modified 5mo ago

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