An introduction to MintPeers
MintPeers is an advanced DeFi P2P lending platform on the blockchain.
MintPeers is a platform where you can borrow and lend without an intermediary, placing borrower and lender in direct contact with each other. The lender lists his offer on the platform where he can determine a number of criteria including currency, interest rate, duration, and percentage and currency of the collateral required.
MintPeers sets some basic limits regarding the loan conditions, in order to exclude loan constructions with excessive interest rates, with which we prevent the borrower from entering into unreasonable agreements. These basic limits used by MintPeers are defined as broadly as possible in order to give free rein to the speculative trading spirit — provided and for as long as safe and reasonable agreements can be warranted.
MintPeers will accept a certain amount of cryptocurrencies, to prevent risky collateralization situations — as explained later. At launch of our mainnet, we will accept the following currencies:
- BTC (Bitcoin)
- ETH (Ethereum)
- LTC (Litecoin)
- BCH (Bitcoin Cash)
- BNB (Binance Coin)
- ADA (Cardano)
- DOT (Polkadot)
- LINK (Chainlink)
- DASH (Dash)
- MIOTA (IOTA)
- XMR (Monero)
- VET (VeChain)
- NAV (Navcoin)
- PAX (Paxos Standard)
- USDT (Tether)
- MPRS (MintPeers)
The lender can place an offer on our platform which any borrower, who meets the criteria, can accept. On acceptation of an offer by a borrower, the lender pays the 2% platform fee and the loan will commence. The lender can set the following criteria for his offer.
A lender can specify the amount they are willing to offer in the currency of their choice, provided it falls within the cryptocurrencies accepted on the MintPeers platform.
The interest can be specified as a percentage between 2% and 16% when demanding full collateral for the loan. The lender can increase this interest percentage to a maximum of 30% by decreasing the collateralization percentage demanded.
The duration of the loan can be specified with certain flexibility, ranging from 1 hour (minimum) to 90 days (maximum).
Full collateralization can be demanded, meaning the borrower has to deposit a collateral of 100% of the loan plus interest. The lender is also free to specify in which currencies collateral is accepted, provided they fall within the cryptocurrencies accepted on the MintPeers platform (as protection for volatile market conditions).
Lender can choose to accept a lower percentage of collateral for borrowers preapproved by lender, for example when a certain base of trust has been established. In this case, the lender is also allowed a variable increase of interest (up to 30%).
In the event the lender accepts collateral in a currency that is different from the loan currency, the value of the collateral can drop below the required ratio due to fluctuation in market conditions (“under-collateralization”), in this case the lender can seize the collateral, or allow the borrower to top up the collateral.
In case the borrower fails to repay the loan according to the set terms, the lender can choose to seize the collateral that has been agreed upon.
Borrowers can see the current offers listed on the MintPeers platform, and choose an offer that meets their criteria, but can also publish a “Request”, which lenders can then fulfill.
Borrowers can choose to commence a loan in various currencies, this does not have to be the currency of their collateral.
According to the criteria set by the lender, either full collateral has to be deposited, or part. The lender can choose the cryptocurrencies in which collateral is accepted, this means a borrower can borrow 1 BTC, while putting up 32 ETH. Upon successful repayment of the loan, the collateral will automatically be returned.
In the event the value of the borrower’s collateral falls below the required collateral ratio, the lender can choose to seize the collateral or allow the borrower to top up the collateral to match the correct ratio, and thus, value.
MPRS Token Minting
When a loan commences, 50% of the platform fee, which equals 1% of the loan value, will be systematically locked in the MintPeers Vault. The amount locked in the Vault is, per definition, only accessible by the borrower after successful repayment of the loan, or will be returned to the lender in case the borrower defaults.
Upon successful repayment of a loan, an amount of MPRS tokens equal to this value will be minted and added to the supply, increasing the total MPRS supply but also adding value, thus keeping inflation fully in check. The minted MPRS tokens will be paid to the borrower as reward for having successfully repaid the loan.
The borrower can choose to hold their reward in MPRS, or choose to cash out their MPRS tokens in exchange for equal value in the loan currency. In this case, MintPeers will automatically buy back these MPRS tokens using the value locked in the Vault, and in turn send this to the borrower and ultimately burn said MPRS tokens from the supply, thus again keeping inflation fully in check. This is an automated and locked process, guaranteeing complete safety.
As the MintPeers platform grows, the value of the MPRS tokens will naturally increase due to this mechanism. This poses many scenarios where it will benefit to hold MPRS, as this increases the MPRS token supply while at the same time adding value.
This does not cause inflation, but rather expands MPRS in terms of value and market cap.