Mars Protocol- The future of decentralized banking

TheRedKnight
Coinmonks
Published in
11 min readJul 28, 2021

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Mars protocol is planning something big, First money market in Terra Ecosystem, where users can lend and borrow any form of value.

Banks are here for a long time, even though they served their purpose in our financial journey, deep down, we know something is fundamentally wrong with them.

Those interest rates are laughable like a meme, getting approval for a loan that you applied for is yet another story. You may feel like you got old waiting for that overseas transfer to complete. The only group of people who actually benefitted from the banking system are the bankers themselves.
It's time to think about alternate solutions.

MARS PROTOCOL

Mars is a bank of the future: non-custodial, open-source, transparent, algorithmic, and community-governed. -Mars Protocol litepaper1.0

Mars aims to provide a better service than our traditional banks. It's fast, anybody can access it, and all controlled by ourselves.

Topics covered are.

  1. What is Mars Protocol and how does it work?
  2. What makes MARS different?
  3. What makes MARS different from ANCHOR Protocol?
  4. MARS Tokenomics.
  5. MARS and Terra.
  6. Conclusion.

Interested? Well, read on…

What is Mars Protocol?

You might already got a fair idea about what mars is trying to achieve. Basically, Mars aims to replace traditional banks using a decentralized model using the Terra blockchain.

There are four fundamental parties involved in Mars Protocol.

  1. Lenders -Those who deposit assets into Mars.
  2. Borrowers with collateral- Those who deposit assets can borrow some of it paying interest.
  3. Borrowers with no collateral: Smart Contracts can borrow assets from Mars if they are approved by the governance. It's one of a kind.
  4. Governance: Stakers of Mars tokens will be participating in governance.

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TheRedKnight
Coinmonks

Anything Related to crypto is always under my radar. But none is financial advice. As a guy who dreams decentralized world, let my face remain unknown.