Mars Protocol
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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.
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