Interest Protocol Joins Chainlink BUILD to Accelerate Adoption of Capital-Efficient Lending

Interest Protocol
Published in
4 min readOct 13, 2022

We’re excited to announce that Interest Protocol — a highly capital-efficient borrowing/lending protocol — is officially joining the Chainlink BUILD Program. BUILD helps empower Interest Protocol to accelerate the adoption of our protocol on Ethereum with enhanced support from Chainlink while we provide network fees and other benefits to the Chainlink ecosystem.

Currently a user of Chainlink Price Feeds, Interest Protocol (IP) has previously entered into a strategic partnership with Chainlink Labs and is exploring the integration of Chainlink Proof of Reserve and Automation. Our participation in BUILD accelerates IP innovation by providing us with the resources to leverage oracle solutions, while also enabling us to work with industry experts and grow our community seeking to utilize more sophisticated decentralized finance applications.

Community support and technical partnership through Chainlink BUILD will be integral to realizing the Interest Protocol vision of increased access to open and transparent lending with enhanced capital efficiency.

Interest Protocol: A Capital-Efficient Lending Protocol on Ethereum

Interest Protocol is a highly capital-efficient, overcollateralized lending protocol on Ethereum that pays interest to all users that hold its native stable asset. Interest Protocol empowers users to generate the stablecoin USDi, which is both overcollateralized and highly scalable. USDi holders earn interest without having to stake. IP aims to be highly capital efficient by generating more loans from a given amount of capital while incurring less liquidity risk than alternatives.

IP takes the best parts of successful protocols like Maker and Compound, and combines them in a non-custodial manner. Users can create a vault, place approved digital asset collateral (such as wBTC, stETH, MATIC, and others) in that vault, and generate USDi. USDi is an interest-bearing stablecoin that can be converted to and from USDC through Interest Protocol at parity.

By leveraging a design that emphasizes liquidity, security, and capital efficiency, IP provides users with software to enable them to take control of their own financial services. Users holding USDi — rather than intermediaries — capture the overwhelming majority of interest paid by borrowers, while users who borrow receive fair rates without giving up control of their collateral assets.

Why We Joined Chainlink BUILD

Interest Protocol joined BUILD to accelerate the adoption of capital-efficient lending by maximizing the benefits of Chainlink’s industry-standard oracle services and extensive ecosystem. As part of BUILD, we receive enhanced ecosystem integration support for the protocol. This expanded support will improve the security and reliability of Interest Protocol, increasing its attractiveness as a capital-efficient lending solution in the DeFi space.

The program also enables Interest Protocol to conserve engineering resources, scale its platform faster, and leverage proven technology, allowing IP to focus on its mission of increasing access to transparent financial services. To align incentives across the Interest Protocol and Chainlink ecosystems, the BUILD program will make 3% of the Interest Protocol Token (IPT) supply available to Chainlink service providers, including Chainlink stakers, over time.

“We look forward to our continued collaboration with Chainlink Labs and the wider Chainlink ecosystem and contributing to realizing the vision of a more open and transparent financial system.” –Getty Hill, Founder, GFX Labs

About Chainlink

Chainlink is the industry-standard Web3 services platform and has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.

Learn more about Chainlink by visiting or reading the developer documentation at To discuss an integration, reach out to an expert.

About Interest Protocol
Interest Protocol is a non-custodial borrow/lend protocol on the Ethereum blockchain. Lenders can deposit USDC for interest bearing USD (USDi), and borrowers can post a portfolio of collateral assets to borrow stablecoins from Interest Protocol. The protocol’s capital efficiency comes from USDi’s fractional-reserve design but remains safe because it requires borrowers to over-collateralize their loans. In addition, the protocol improves upon all core pieces of a borrow/lend protocol, such as the liquidation mechanism, collateral system, and oracle design. Notably, governance tokens with delegation power can be utilized while posted as collateral. Visit our website to learn more: link