Liquidity Mining
The protocol emits and distributes Minterest’s native token (MNT) to lenders and borrowers of every active market, this is fundamental to its liquidity mining architecture. The system is built to incentivize user behaviour and develop a healthy money market ecosystem with significant depth of liquidity.
Minterest lenders and borrowers accrue MNT on a block-by-block basis, which can be withdrawn by users or automatically staked into the governance processes to participate in the protocol’s Buy Back rewards.
Liquidity mining is also enabled on the Buy Back rewards process during the protocol’s early stages in order to help bootstrap this critical feature.

Emission rate

50,032,400 MNT tokens are allocated over 5 years to be distributed to lenders, borrowers, and MNT stakers from the Community pool. This results in an emission steady rate of 27,415 MNT tokens per day. The emission rate defines the amount of MNT tokens distributed on a per block basis for each asset pool. Such tokens are distributed to lenders and borrowers equally, i.e. on a 50/50 basis.
Given the amount borrowed is always less than the liquidity supplied, such a structure rewards borrowing more than lending, and is purposely skewed this way given borrowing activity is essential for the various token pool marketplaces to exist and for the protocol’s value capture mechanisms to operate.
The Emission Rewards are distributed specifically to lenders and borrowers according to their relative proportion of lending and borrowing value in each pool, with an adjustment for MNT Emission Boost (described in the NFT section below). The emission rates for all supported asset pools can be varied by governance, essentially enabling some asset pools to be beneficiaries of more attractive liquidity mining than otherwise would be the case, in order to optimise user behaviour and protocol outcomes.

Emission distribution

MNT emission distribution is allocated into three buckets.
  • Standard Emission. 30,000,000 MNT tokens (60%) of the Community pool is allocated over 5 years to liquidity providers who lend and borrow.
  • Boost Emission. 15,000,000 MNT tokens (30%) of the Community pool is the maximum able to be allocated over 5 years to liquidity providers who hold Minterest NFTs.
  • Buy Back Emission. 5,000,000 MNT tokens (10%) of the Community pool is allocated over 5 years to bootstrap the Buy Back process. The Buy Back Emission pool provides time for the protocol’s value capture mechanism to mature, upon which the protocol’s value capture will then support the Treasury to undertake significant Buy Backs for distribution. Bootstrapping the rewards structure in this way incentivizes early staking MNT tokens by supporting an attractive APY from launch.
Boost and Buy Back Emission which are unallocated will be automatically redistributed to the Standard Emission pool and so increase the value of the protocol’s liquidity mining architecture over time. It is important to note it is expected that this redistribution will apply to a very significant majority of both Boost and Buy Back Emission, meaning in practice, Standard Emission will end up being markedly higher than the 30,000,000 allocated above.
Brief from Josh, CEO at Minterest.