Interest Protocol Token $IPT

Interest Protocol Token (IPT) is a revolutionary financial system built on the Ethereum blockchain. Initiated by GFX Labs, this project executes the first fractional reserve banking protocol on the decentralized network, offering attractive interest to its depositors. The IPT serves as the governing token of the Interest Protocol system.

About Interest Protocol

Officially launched on June 13, 2022, the Interest Protocol operates with two main tokens: the USDi stablecoin and the IPT governance token. The USDi is an over-collateralized stablecoin minted by depositing 1 USDC into the protocol. It can also be burned back into 1 USDC whenever the holder wishes. Users can deposit assets into a multi-collateral vault and borrow USDi against their collateral. The protocol also provides an automatic yield generation feature for all USDi holders, eliminating the need to spend gas for staking.

Reserve Ratio Management

Interest Protocol operates an automatic reserve ratio management system that maintains the balance of USDC in the protocol's reserves against the total USDi supply. By using a variable interest rate, the protocol can manage its reserve ratio efficiently. If the reserve ratio decreases, the interest rates for borrowing and depositing USDi increase, and vice versa. This mechanism ensures that Interest Protocol can issue more loans with less liquidity risk compared to other protocols without fractional reserves.

IPT Token Circulation

The total supply of IPT tokens at launch is 100 million, with 20% of this unissued and held in the protocol treasury. The IPT token holders, through governance proposals, have the collective power to decide on minting additional IPT tokens when necessary.

The Team Behind Interest Protocol

The development of the Interest Protocol was handled by GFX Labs. GFX Labs was established in 2021 with the goal of creating web 3 applications that enhance ownership and boost usability.

Acquiring IPT Tokens

IPT tokens can be purchased by participating in the IPT sale. This provides an opportunity for interested parties to become part of the Interest Protocol community and contribute to the growth of this innovative decentralized financial system.