At the core of Interest Protocol is its reliance on smart contracts to facilitate lending and borrowing. When a user wants to borrow funds, they must first provide collateral in the form of digital assets. This collateral secures the loan and protects lenders. Interest rates are determined algorithmically based on supply and demand, ensuring competitive rates for both borrowers and lenders. Once the terms are agreed upon, the smart contract automatically executes the transaction, managing dis...
