Mars Protocol: Decentralized Banking, Leveraged Yield Farming, Credit, and More! Built on Terra

Mars Protocol: Decentralized Banking, Leveraged Yield Farming, Credit, and More! Built on Terra

Today’s video gives an introduction to Mars Protocol. Mars aims to be the main credit protocol on Terra (and eventually other chains). It will facilitate borrowing and lending of many different assets and will allow for uncollateralized borrowing. I go over their dynamic interest rate, tokenomics, lockdrop event, and how it differs from Anchor Protocol. Enjoy!

Mars Protocol

Mars Litepaper

Dynamic Interest Rate Model

MARS Lockdrop

Mars vs Anchor

Fields of Mars

Mars Integration With Levana

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0:00 Intro
0:32 Mars Overview
3:45 Collateralised Debt
6:58 Uncollaterised Debt
9:01 Fields of Mars
9:56 Dynamic Interest Rates
13:12 MARS Tokenomics
15:22 Shortfall Events
15:52 Insurance Fund
16:36 Protocol Interest
17:22 Lockdrop Event
19:43 Mars vs Anchor
22:05 Mars X Levana
22:54 Outro

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.


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  1. I think Mars Protocol is going to be a great protocol! Are y’all excited for it?

  2. So many project are coming to Terra… not enough money to invest in them. One question is bothering me, what will happen when BTC starts to cool of. What will happen to all of the Terra protocols/tokens?

  3. Thanks for the great content as usual and explained this seemingly complicated protocol easy to understand. Uncollateralized borrow just like the flash loan? to me, this protocol seems having too many uncontrollable factors, it might be a great project though, I love keeping things simple and straight-forward, Anchor, Mirror and Spectrum to me already super good enough in Terra eco-system, but always good to learn something new and get inspired for potential new ideas! Thanks Caleb!

  4. Always a simple explanation for complicated products, which is not an easy thing to do. Great job Caleb!

  5. Hi Caleb, thank for the summary. I have a qustion not related to Mars but to terra. I duplicate it from the twitter.
    Is there any use for aUST (anchor UST) besides borrowing on mirror? I dont know any other protocols that would accept aUST. Thanks!

  6. thanks for the information kaleb really usefull as always, i would like to see more updates on videos like this, this project seems very interesting and i would like to participate in it

  7. Great content, thank you for sharing !! I’m discovering Terra ecosystem and your videos really help

  8. Spectacular presentation, I think I have stumbled upon one of my fav underrated youtube channels. Instant subscribed. This new concept of uncollateralized lending both scares and excites me, gives another layer of utility to the MARS protocol. We all know gov utility is mostly a meme.

  9. Do they have NASA scientists working at MARS? Lots of innovative practices offered by MARS, ofc it remains to be seen if it works but it seems super innovative. I also love how we can acquire MARS lockdrops just by locking UST. Theres literally no risk aside from opportunity cost.

  10. Great video! Would be cool if Nexus opens up vaults based on Mars strategies. No more liquidation risk :D

  11. While excited for Mars Protocol, it sounds like something Kujira can benefit from. Including the part where you mentioned another project “Levana Protocol” will make use of leverage to build on Mars Protocol. This is right up the alley of Kujira assuming the project uses Luna as collateral. Do you know if there will be an integration with Kujira between Mars Protocol and Levana Protocol?

  12. Great video.. thanks so much for walking us through the Mars Protocol. Keep up the good work Caleb 👍